Energy Executives’ $3 Million Disgorgement Judgment Stands

Energy executives who violated securities laws failed to convince a federal judge in Louisiana to alter the amounts they were ordered to pay in disgorgement in light of a June U.S. Supreme Court decision.

Disgorgement is necessary to benefit Treaty Energy Corp.'s investors, and the three company leaders who appealed failed on remand to present evidence of legitimate expenses necessitating a deduction, the U.S. District Court for the Eastern District of Louisiana said.

Treaty founder Ronald L. Blackburn, CEO and later chief operating officer Bruce A. Gwyn, and corporate secretary and investor relations consultant Michael A. Mulshine argued that ...