Miller Energy Resources is now facing accounting-fraud charges, the latest disclosure in a series of bad announcements.
Federal securities regulators have charged the Tennessee based, Alaska focused company, along with a former and current executive.
The charges allege Miller inflated values of oil and gas properties that led to fraudulent financial reports.
Miller has benefited heavily in oil and gas exploration in the Cook Inlet from Alaska’s tax credits.
According to a statement issued about the civil claims today, the Securities and Exchange Commission alleges the company overstated the value of oil gas properties acquired in Cook Inlet in 2009 by $400,000 to increase the company’s net income and total assets.
On June 30 the New York Stock Exchange notified Miller Energy their common stock would be suspended due to their financial difficulties.
The company’s stock had reached as much as $9 per stock in 2013; as of Thursday Miller is worth 15 cents per share.
Miller allegedly paid $2.25 million to purchase Alaska properties along with assuming certain liabilities and later reported the property values at $480 million according to the SEC’s enforcement division.
The chief financial officer at the time, Paul Boyd, and current chief executive of Miller Energy’s Alaska subsidiary/chief operating officer for Miller David Hall of Anchorage have been charged.
Carlton Vogt III, former independent auditor from New York has also been charged. The SEC alleges Vogt produced a deficient 2010 fiscal audit of the company’s financial statements.
Miller Energy managers are meeting in Anchorage Thursday to discuss the next steps.