The U.S. Securities and Exchange Commission (SEC) has imposed a fine of $46.2 million on Exelon and its subsidiary, Commonwealth Edison Company (ComEd), in connection with an alleged scheme to corruptly influence and reward a former Illinois politician. The SEC has also filed a lawsuit against ComEd’s former CEO, Anne Pramaggiore, in federal court in Illinois.
According to the SEC, ComEd arranged for associates of former Speaker of the Illinois House of Representatives Michael Madigan to receive jobs, subcontracts, and payments between 2011 and 2019. In 2020, ComEd reached an agreement with criminal authorities, acknowledging that the bribes resulted in benefits of more than $150 million.
Exelon, the parent company of ComEd, has stated that it has strengthened its compliance program and corporate governance, implementing additional policies, controls, oversight, and employee training to prevent similar conduct in the future.
The SEC’s lawsuit against Pramaggiore alleges her participation in and direction of the scheme. Regulators also assert that she misled investors by portraying the bribes as part of legitimate lobbying activities.
Anne Pramaggiore’s lawyer declined to comment, and there was no immediate response from Michael Madigan’s lawyer regarding the matter.
By FCCT Editorial Team