Now Chesapeake Has Been Subpoenaed By The SEC

The SEC has upgraded its inquiry of Chesapeake Energy's alleged failure to reveal conflict of interest to a full-blow investigation and has subpoenaed the company for information, according to a 10-K filed today.

Outgoing chief Aubrey McClendon is also providing information, the filing said.

Here's the exact language from the filing:

On December 21, 2012, the SEC's Fort Worth Regional Office advised Chesapeake that its inquiry is continuing as an investigation and it has issued subpoenas for information and testimony. The Company, including Mr. McClendon, is providing information to the SEC in connection with this matter. The Company is also responding to related inquiries from other governmental and regulatory agencies and self-regulatory organizations.

Last summer, the Pittsburgh Post-Gazette and Reuters uncovered an unusual arrangement at the country's second-largest natural gas producer that allowed McClendon to secure $1.1 billion in personal loans using drilling property as collateral.

The SEC launched an informal inquiry into the allegations soon after the reports came out.

McClendon is set to step down in April.