A former executive of U.S. operations at Canadian oil services company Poseidon Concepts pleaded guilty Wednesday to perpetrating a scheme to fraudulently inflate the company’s reported revenue, resulting in more than $886 million in shareholder losses, the Department of Justice announced.
Joseph Kostelecky, in his role as the highest-ranking U.S. executive at Poseidon, admitted he caused the company to falsely report approximately $100 million in revenue from purported long-term contracts with oil and natural gas companies that were customers. The misconduct occurred from approximately November 2011 to December 2012, according to court documents.
