http://www.bizjournals.com/houston/news/2013/05/01/former-accountant-sues-black-elk.html?page=all
May 1, 2013, 2:53pm CDT UPDATED: May 1, 2013, 4:44pm CDT
Pictured: John Hoffman, CEO of Black Elk Energy.
Deon Daugherty
Reporter-
Houston Business Journal
+
Update: Black Elk denies fraud alleged by former accountant
An accountant who worked at Black Elk Energy Offshore Operations LLC in Houston is suing the company, alleging he was fired after saying he would alert auditors to more than $360,000 in fraudulent charges on the company’s credit cards, including more than $25,000 at “gentlemen’s clubs.”
Micah Bowen said in the lawsuit, filed April 29 in Harris County, that during the course of 20 months, House Burton, the driver and security administrator for CEO John Hoffman, racked up various charges, including $50,000 in accessories for his vehicle and thousands of dollars at retail stores, bars and restaurants, Las Vegas hotels and personal dental bills.
“Mr. Hoffman personally approved Mr. Burton’s expenses each month,” the lawsuit says.
Bowen said that when he reported the findings to Hoffman, he didn’t respond to the purported fraud.
“Further, Mr. Hoffman told Mr. Bowen that Mr. Burton’s nonbusiness-related spending was none of his business, not part of his job responsibilities, and to ignore the issue. Mr. Bowen understood this to mean that Mr. Hoffman was asking Mr. Bowen to not report these charges to the auditors,” according to the lawsuit.
After Bowen took the matter to Art Garza, the company’s chief technical officer, he said he was chastised for “gossiping.” During an email exchange, Bowen said he explained his concerns about the nonbusiness related spending to Hoffman, who said Burton would pay “restitution” for his nonwork expenses.
Bowen said he felt he was being put in a difficult position and that he was “not going to lie” to auditors. After expressing this to the company leaders, Bowen alleges he was fired.
“Mr. Bowen was terminated for refusing to lie to UHY auditors about illegal activity that was occurring at Black Elk, including but not limited to, Mr. Burton stealing from the company with Mr. Hoffman’s approval,” the lawsuit alleges.
Black Elk was in the news recently for safety concerns. In November, three contract workers were killed when a Black Elk offshore drilling platform exploded.
According to Courthouse News, Black Elk has been sued three times since the accident.
Energy Inc. gives you the latest oil, gas, wind and solar energy news from across Texas as well as in-depth reporting and analysis from energy reporters at the Houston, Austin, Dallas and San Antonio business journals and other experts from around the nation. Sign up to receive the Energy Inc. Texas Edition newsletter arriving every Monday beginning May 6.