Dec 15, 2011 at 7:47 am
MINNEAPOLIS (AP) - A Minnesota-based energy company admits it defrauded investors of up to $7 million.
Bixby Energy Systems Inc. in Ramsey entered an agreement with federal prosecutors Wednesday. Bixby accepted a charge of securities fraud and took responsibility for the actions of former officers and agents.
The agreement is called a deferred prosecution agreement. It was made possible after two outside directors took control of Bixby's board in May, then forced a co-conspirator and his associates out of the company. Bixby investigated and shared its findings with the government.
The U.S. Attorney's Office says that because of the fraud, Bixby Energy investors lost between $2.5 and $7 million from 2006 to May 2011.
U.S. Attorney B. Todd Jones says Bixby Energy demonstrated true corporate responsibility in doing the right thing.
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