[To my surprise, I did not see another diary on this topic—my apologies if I missed it.]
TPM reports that the Securities and Exchange Commission (SEC) filed suit against eight executives of Breitling Energy Corp., including CEO Chris Faulkner, the mogully Texas frack master. According to the SEC, Mr. Faulkner “carried out an elaborate $80 million fraud scheme to fund his extravagant lifestyle, including a penchant for strippers.”
According to the SEC, [Chris Faulkner] and seven others at his company allegedly defrauded investors by giving them misleading information and manipulating Breitling’s stock. The lawsuit, filed in federal court in Dallas, accused Faulkner of misappropriating "at least $30 million in investor funds to maintain a lifestyle of decadence and debauchery."
Those millions in investor funds allegedly went towards Faulkner's personal expenses, including international travel, cars, jewelry and opulent meals. The SEC charged that the fracking mogul even obtained what he referred to as a “whore card”—an American Express used exclusively for these “salacious” purchases—to shield his personal spending and expense reimbursements from the rest of the company.
Faulkner allegedly used that card to charge more than $1 million in personal travel, expenses for personal escorts and nights out on the town, according to the suit. In one four-day period in July 2014, the SEC alleged, he spent nearly $40,000 at a single Dallas gentleman’s club.
A bad boy, indeed. Given his business, I’m not sure why he didn’t use his American Express Whore Card for everything. Fortunately, he has taken care of potential unpleasantness in advance. His political contributions reportedly included $87,500 for Texas Lt. Gov. Dan Patrick’s (R) campaign and $100,000 for Texas Railroad Commissioner candidate Ryan Sitton. (You might not be surprised to learn about all of the neat industries the Texas Railroad Commission regulates besides the railroad industry.)
The Republicans appear to have lost a great donor. He could have hosted a few people at a nice reception in Cleveland at the Republican National Convention—covered 100% by Chris’ American Express Whore Card. I cannot think of a more appropriate use.