Former Dynegy CFO Robert Doty Jr. will pay the Securities and Exchange Commission $375,000 for his role in a $300 million accounting fraud.

Doty was involved in a scheme known as Project Alpha, in which a loan was improperly disguised as operating cash flow to minimize the gap between the power company's reported net income and cash flow from operations, and to realize as net income an invalid $79 million tax benefit. He was also involved in the decision not to make any separate disclosure to investors about Alpha's non-commercial pricing characteristics.

Dynegy's former vice president of taxation, Gene S. Foster, and former manager of accounting deal structure Helen C. Sharkey, also settled with the SEC over their roles in Project Alpha. According to the SEC, both executives disregarded accounting advice from Dynegy's outside auditor and concealed critical details of the transaction from the auditor.

Both Foster and Sharkey have consented to orders permanently enjoining them from future violations of the anti-fraud and internal controls provisions of federal securities laws and barring them from appearing or practicing before the SEC as accountants.

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