Exelon, a leading energy company, has agreed to pay a significant penalty of $46.2 million to settle fraud charges brought by the Securities and Exchange Commission (SEC). The charges are related to Exelon’s business operations in Illinois.
The SEC has taken action against Exelon, its subsidiary Commonwealth Edison Company, and former Commonwealth Edison Chief Executive Anne Pramaggiore for their involvement in a fraudulent scheme. The scheme involved corrupt practices to influence and reward former Illinois House Speaker Michael Madigan.
According to the SEC, between 2011 and 2019, Commonwealth Edison allegedly made indirect payments of over $1.3 million to Madigan’s associates. These payments were made to secure jobs, subcontracts, and monetary benefits with the intention of influencing Madigan regarding legislation favorable to Commonwealth Edison.
As part of a deferred prosecution agreement, Commonwealth Edison has admitted that Madigan’s support resulted in benefits exceeding $150 million for the company.
Michael Madigan, who held the position of Illinois House Speaker for an unprecedented period, was voted out by the Democratic Party caucus in 2022. He now faces federal charges including racketeering conspiracy, bribery, wire fraud, and extortion. Madigan, at the age of 79, has been under investigation for several years for his alleged involvement in various schemes. One such scheme involved Commonwealth Edison allegedly providing jobs and internships to his associates in exchange for favorable legislation.
It is noteworthy that this settlement represents a significant step towards accountability for Exelon and Commonwealth Edison. The enforcement actions taken by the SEC send a clear message about the importance of transparency and ethical business practices.