Quest Resource sinks as CEO resigns amid investigation into cash transfers of company funds
Quest Resource Corp.’s (Nasdaq:QRCP) stock lost nearly one-quarter of its value this morning as the Oklahoma City, Okla.-based energy company’s chairman and chief executive officer, Jerry Cash, resigned in the wake of an investigation into a “questionable transfers of company funds” to an entity controlled by Cash.
The resignation followed resignation followed the discovery, in connection with an inquiry from the Oklahoma Department of Securities, of the transfer of what appears to involve about $10 million.
Cash was also chairman and CEO of Quest Energy Partners LP (Nasdaq:QELP), which is also down 18% on the news, and Quest Midstream Partners LP.
Members of the three boards formed a joint special committee that has retained Andrews Kurth LLP to lead the investigation. Meanwhile, Quest’s CFO David Grose was placed on a paid administrative leave of absence during the investigation. Quest has reported this matter to, and intends to fully cooperate with, the U.S. Securities and Exchange Commission and other appropriate governmental and regulatory organizations.
By mid-day, Quest Resource Corp’s stock is at $5.22, down $1.71 from Friday’s close.
For detailed price information and news stories on Quest Resource Corp., click QRCP.
