Lawsuit Claims Patterson UTI Management Might be to Blame for $77 Million Embezzlement - KCBD NewsChannel 11 Lubbock

5/8/06

Lawsuit Claims Patterson UTI Management Might be to Blame for $77 Million Embezzlement

Patterson UTI shareholders want to know who else is to blame in a $77-million embezzlement scheme. The question comes in a civil lawsuit against Jonathan Nelson, Patterson UTI board of directors, and auditing company, Pricewaterhousecoopers, LLP.

Last month, Nelson, the oil company's former CFO, pleaded guilty to money laundering and wire fraud. NewsChannel 11's Jennifer Vogel explains the new developments.

Attorney Bill Federman tells us this lawsuit is not for personal gain, but to put pressure on Patterson UTI Board members to get back that $77-million. "This company has been done wrong, and somebody was asleep at the switch." Federman says this lawsuit is necessary to get back the $77-million. "We're trying to protect the corporation from its own management and try to recover money for the company because of the wrongdoing by Nelson."

The name on the lawsuit is Patterson UTI shareholder Fernard Moore. The lawsuit claims to be in the company's best interest; trying to find out how one man slipped millions of dollars by and entire board of directors and an auditing firm. "If what occurred here happened in part by negligence or lack of focus by the board, than the board should be held accountable to the shareholders and the company for that."

The lawsuit also asks, 'What took so long for anyone to notice millions went missing?'

"What we have is a clear instance here of self stealing and potential company frauds by the CFO for millions of dollars happening over a two year period, at least."

Another concern is that Patterson has not done enough to convince shareholders that they'll get the money back. "That's a large chuck of change that has gone out the door. And simply now closing the door behind it is not going to be business as usual because shareholders in this company are watching management and the board, and the board has not acted affirmative to do something."

The shareholder is asking for a jury trial in the lawsuit. They have not yet asked for a specific dollar-amount owed to Patterson saying they'll wait to hear what the court thinks is appropriate.

NewsChannell 11 contacted Patterson UTI Energy about this lawsuit but they did not want to make a comment.

kcbd.com Message Boards
Sound off on news or current events on our message boards!

  • Local News on KCBD.comNewsMore>>

  • Grand jury indicts Missouri governor who admitted affair

    Grand jury indicts Missouri governor who admitted affair

    Thursday, February 22 2018 5:35 PM EST2018-02-22 22:35:21 GMT
    Thursday, February 22 2018 11:57 PM EST2018-02-23 04:57:26 GMT
    A St. Louis grand jury indicted Missouri Gov. Eric Greitens on a felony invasion of privacy charge related to the Republican's affair with a woman in 2015. (AP Photo/Jeff Roberson, File)A St. Louis grand jury indicted Missouri Gov. Eric Greitens on a felony invasion of privacy charge related to the Republican's affair with a woman in 2015. (AP Photo/Jeff Roberson, File)

    A St. Louis grand jury has indicted Missouri Gov. Eric Greitens on a felony invasion of privacy charge related to the Republican's affair with a woman in 2015.

    A St. Louis grand jury has indicted Missouri Gov. Eric Greitens on a felony invasion of privacy charge related to the Republican's affair with a woman in 2015.

  • US women beat Canada for gold in a 3-2 shootout thriller

    US women beat Canada for gold in a 3-2 shootout thriller

    Thursday, February 22 2018 2:34 AM EST2018-02-22 07:34:20 GMT
    Thursday, February 22 2018 11:56 PM EST2018-02-23 04:56:41 GMT
    (AP Photo/Matt Slocum). United States celebrates winning gold after the women's gold medal hockey game against Canada at the 2018 Winter Olympics in Gangneung, South Korea, Thursday, Feb. 22, 2018.(AP Photo/Matt Slocum). United States celebrates winning gold after the women's gold medal hockey game against Canada at the 2018 Winter Olympics in Gangneung, South Korea, Thursday, Feb. 22, 2018.

    Twenty long years after taking gold when the sport debuted in 1998, the United States snapped Canada's streak of four straight Olympic golds with a 3-2 shootout victory.

    Twenty long years after taking gold when the sport debuted in 1998, the United States snapped Canada's streak of four straight Olympic golds with a 3-2 shootout victory.

  • The Latest: Dismal showing for US female figure skaters

    The Latest: Dismal showing for US female figure skaters

    Thursday, February 22 2018 8:44 PM EST2018-02-23 01:44:26 GMT
    Thursday, February 22 2018 11:56 PM EST2018-02-23 04:56:31 GMT
    (AP Photo/Bernat Armangue). Alina Zagitova of the Olympic Athletes of Russia performs during the women's short program figure skating in the Gangneung Ice Arena at the 2018 Winter Olympics in Gangneung, South Korea, Wednesday, Feb. 21, 2018.(AP Photo/Bernat Armangue). Alina Zagitova of the Olympic Athletes of Russia performs during the women's short program figure skating in the Gangneung Ice Arena at the 2018 Winter Olympics in Gangneung, South Korea, Wednesday, Feb. 21, 2018.

    The Russians have a good shot at winning their first gold medal of the Pyeongchang Olympics when teenage figure skaters Alina Zagitova and Evgenia Medvedeva take the ice for the women's free skate.

    The Russians have a good shot at winning their first gold medal of the Pyeongchang Olympics when teenage figure skaters Alina Zagitova and Evgenia Medvedeva take the ice for the women's free skate.

Powered by Frankly