Page "Dynegy" Paragraph 14

Although Dynegy avoided bankruptcy, the fallout from the company's accounting practices continued throughout 2002.

In August, former Dynegy controller and chief accounting officer Bradley P. Farnsworth sued the company, saying he'd been fired after refusing to help manipulate the company's financial statements in the summer of 2000.

The company suspended its dividend on August 12.

On September 3, interim chairman Glenn F. Tilton resigned in order to become chief executive officer of United Airlines.

On September 24, Dynegy announced that it had agreed to pay a US $ 3 million fine for using the Catlin company and other business partnerships to hide losses and taxable income.

It also admitted that it had engaged in " round-trip " trades, phony natural gas and electricity trades designed to mislead investors and other companies about the success of Dynegy's online trading operation.

The company later fired five traders after the Commodity Futures Trading Commission ( CFTC ) discovered that Dynegy energy traders had supplied false prices to industry trade publications.

The company later paid a US $ 5 million fine to the CFTC.

Still needing cash, Dynegy sold its Hornsea natural gas storage site in the United Kingdom to help pay the fine.