Family-owned energy company closes amid fraud reports
MANHEIM, Pa. – A family-owned Pennsylvania energy company has abruptly shut down as it faces a potential fraud involving tens of millions of dollars after the brief disappearance of its CEO.
LNP reports that Manheim-based Worley & Obetz closed its doors Monday after 72 years in the residential heating oil, propane and HVAC business. This will leave about 250 workers unemployed.
At least three banks have told the Securities and Exchange Commission the company will have multimillion-dollar losses over fraud tied to a loan. A restructuring plan to keep Worley & Obetz afloat has been rejected.
The company’s longtime CEO Jeff Lyons had been reported missing May 15 but was found days later and fired. A message seeking comment from him wasn’t returned.
The FBI is investigating. No one has been charged.
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Information from: LNP, http://lancasteronline.com
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