Energy Transfer LP (ET) Accused of Bribery
According to the complaint for alleged violations of the Securities Exchange Act of 1934 between February 25, 2017 and November 11, 2019, in February 2017, the Pennsylvania Department of Environmental Protection approved water-crossing and sedimentation permits for the Mariner East 2 pipeline, which was believed to be the final regulatory hurdle to begin construction of the pipeline. What Energy Transfer’s investors didn’t know, however, was that Energy Transfer’s permits were secured via bribery and other improper conduct. This wrongdoing became public knowledge on November 12, 2019, when the Associated Press reported that Energy Transfer’s Mariner East pipeline project was under investigation by the Federal Bureau of Investigation relating to “the permitting of the pipeline, whether Wolf and his administration forced environmental protection staff to approve construction permits and whether Wolf or his administration received anything in return.” On this news, Energy Transfer stock fell almost 7% to close at $11.16.
