The U.S. Securities and Exchange Commission is investigating allegations that Dow Chemical Co DOW's Chairman and Chief Executive Officer Andrew Liveris misused company funds for personal benefits, Reuters has reported.
The publication said that it is unclear whether the company or the executive has been ordered to release documents or testify as part of the investigation. What is known at this time is that the SEC did issue subpoenas for thousands of pages of documents and testimony that were part of a "whistle-blower" lawsuit from a former Dow Chemical employee, Kimberly Wood.
Wood, a 25-year veteran of the company, alleged she was fired in 2013 for repeatedly reporting "questionable" spending by the CEO on activities that have no business relevance.
Wood, a fraud investigator at Dow Chemical, alleged that funds designated for the company were used to pay for vacations, sports junkets and other perks for Liveris and his family. The company reached a settlement with Wood and agreed to no longer discuss the allegations.
Reuters also noted that Dow Chemical faced similar scrutiny in the past.
A series of internal examinations by Dow Chemical's auditors, including documents from its former Chief Auditor Doug Anderson were examined by Reuters. The documents raised concerns over "suspected ethical and compliance issues or violations," raising similar suspicions in to the misuse of corporate funds.
Dow Chemical publicly respond to these allegations last month and stated that the matter has been "long since closed" and "Reuters somehow views these old matters as newsworthy."
Shares of Dow Chemical traded recently at $52.81, down 0.36 percent on the day.
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