Exxon, New York prosecutors face off in climate change fraud trial

A lawyer for New York’s attorney general on Tuesday told a state judge that Exxon Mobil Corp used two sets of books to hide the true cost of climate change regulations from investors, while an attorney for the oil major assailed the claims as politically motivated.

The lawyers’ opening statements kicked off a long-awaited trial in a civil lawsuit filed by the attorney general last year accusing Exxon of defrauding investors out of up to $1.6 billion.

The trial, expected to last up to three weeks, will take place before Justice Barry Ostrager in Manhattan Supreme Court without a jury and could feature testimony from Rex Tillerson, who served as Exxon chief executive officer and U.S. Secretary of State.

It is the first of several lawsuits currently pending against major oil companies related to climate change to go to trial. read more »

Kevin McAllister ousted as boss of Boeing Commercial Airplanes as 737 MAX crisis continues

The first Boeing executive head to roll as a result of the ongoing 737 MAX crisis is that of Kevin McAllister. The Boeing board decided to fire him as boss of Boeing Commercial Airplanes at a board meeting Monday in San Antonio.

McAllister was replaced immediately by Stan Deal, chief executive of Boeing’s services division and formerly a longtime executive within the Seattle-area commercial jet division. On Tuesday, at the division’s headquarters at Longacres, Deal was already installed.

A senior Boeing executive with knowledge of the deliberations, who asked for anonymity because of the sensitivity of the issues, said the reason for McAllister’s firing was not the MAX alone but a combination of a lot of negative developments “on his watch.”

These included the 777X engine problems that have pushed first flight into next year and the recent blowout of a door that happened during ground testing of that jet. Another factor, the senior executive said, was this month’s discovery in older 737s of cracks in the so-called “pickle fork” structure connecting the wings to the fuselage. And the shrinking backlog of the 787 Dreamliner is also a concern.

But the major issue has been the grounding of the 737 MAX and the constant pushing out of its return to service as Boeing has struggled to meet the demands of international regulators. As a result, Boeing stock is down almost 19 percent since the second MAX crash in March. read more »

Two enter guilty pleas in what federal prosecutors call $2.5 billion Ponzi scheme

Two key figures in an investigation of what prosecutors call a $2.5 billion Ponzi scheme pleaded guilty in federal court in Sacramento Tuesday, paving the way for them to cooperate in an ongoing probe involving a now-defunct Benicia solar company.

Ronald Roach, a certified public accountant for DC Solar Solutions, and Joseph Bayliss, an electrician, both entered guilty pleas to a charge of conspiracy to commit an offense against the United States before U.S. District Judge John A. Mendez. Roach also pleaded guilty to a count of securities fraud.

The plea agreements call for both men to cooperate in an ongoing probe of DC Solar Solutions and its once high-flying owners, Jeffrey and Paulette Carpoff of Martinez. read more »