American Electric pays $19M to settle SEC investigation

American Electric (AEP) Power said it reached a settlement with the Securities and Exchange Commission, concluding and resolving in its entirety its involvement with respect to the SEC investigation which AEP previously disclosed, concerning AEP’s relationship with and statements about Empowering Ohio’s Economy, a social welfare organization, and AEP’s related internal accounting and disclosure controls. Under the terms of the administrative order, in which AEP neither admits nor denies the SEC’s findings, AEP has agreed to pay a civil penalty of $19M and to cease and desist from committing or causing any violations and any future violations of specified provisions of the federal securities laws and rules promulgated thereunder. AEP recorded an accrual for the full amount of the penalty in Q3.