Ex-Nicor executives indicted
The Associated Press
Published December 10, 2003, 2:24 PM CST
chicagotribune.com
Three former executives of now-defunct energy marketer Nicor Energy and an outside lawyer for the company were indicted Wednesday on charges of scheming to obtain $400,000 in bonuses and other benefits by inflating revenues.
``These charges demonstrate our continuing commitment to investigating and prosecuting corporate executives who distort financial information that is relied upon by outside auditors and, most importantly, the investing public,'' U.S. Attorney Patrick J. Fitzgerald said in announcing the wire fraud charges.
The five-count indictment named Kevin Stoffer, 45, of Naperville, former president and chief executive officer; Andrew Johnson, 43, of Elmhurst, former director of financial services; John Fringer, 43, of Naperville, another executive; and Michael Munson, 38, of Chicago, an outside attorney for the company.
The names of their lawyers were not immediately available. Wire fraud carries a maximum sentence of five years in prison and a $250,000 fine.
Nicor Energy was established in 1997 as a joint venture by Nicor Inc. and Houston-based Dynegy Inc. It was based in suburban Lisle.
In July 2002, Nicor Inc. issued a news release saying its financial results had been negatively affected by several factors, including accounting irregularities at Nicor Energy. The next day Nicor stock fell about 40 percent.
Nicor Energy, which was unregulated, is in the process of final liquidation.
The indictment said Nicor Energy made bonus payments in 2002 dependent on meeting or exceeding profit targets.
The defendants caused the reporting of bogus profits on Nicor Energy's 2001 financial statements, according to the indictment. Stoffer and Johnson inflated the figures by as much as $6 million, prosecutors alleged.
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