Covia Reaches $17 Million SEC Settlement in Frack Sand Probe (1)

Bankrupt Covia Holdings Corp. agreed to a $17 million settlement with the U.S. Securities and Exchange Commission to resolve allegations that the frack sand producer misled investors about some of its specially manufactured sand.

The Independence, Ohio-based company’s settlement with the Securities and Exchange Commission allows Covia to pay $1 million to satisfy an agreed-upon $17 million civil penalty. If the settlement is approved, the penalty would be treated as a general unsecured claim in Covia’s Chapter 11 case.

Covia filed an emergency motion Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas to seek approval of ...