Anne Pramaggiore
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25866 / September 28, 2023
Securities and Exchange Commission v. Anne Pramaggiore, No. 1:23-cv-14252 (N.D. Ill. filed September 28, 2023)
SEC Charges Exelon Subsidiary Commonwealth Edison’s Former CEO Anne Pramaggiore with Fraud in Connection with Political Corruption Scheme
The Securities and Exchange Commission filed fraud charges against Anne Pramaggiore, former CEO of Exelon subsidiary, Commonwealth Edison Company (ComEd), in connection with a multi-year scheme to corruptly influence and reward then-Speaker of the Illinois House of Representatives Michael Madigan.
According to the SEC’s complaint, under Pramaggiore’s watch and with her active participation, ComEd arranged for various associates of Madigan to obtain jobs, subcontracts, and monetary payments, all with the intent to influence Madigan regarding legislation favorable to ComEd. ComEd arranged payments to Madigan’s associates through third-party vendors to conceal the size of the payments and to assist ComEd in denying responsibility for oversight of Madigan’s associates, who in some instances did little to none of the work for which they were hired. The indirect payments totaled more than $1.3 million to Madigan’s associates. The complaint alleges that Pramaggiore did not disclose the political corruption scheme and instead misled investors when she characterized ComEd’s lobbying activities as legitimate. The complaint also alleges that, as part of the scheme, Pramaggiore lied to Exelon’s auditors and filed false certifications.
The SEC’s complaint, filed in the U.S. District Court for the Northern District of Illinois, alleges that Pramaggiore violated the antifraud provisions of Section 17(a)(2) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5(b) thereunder. The complaint also charges Pramaggiore with violations of 13(b)(5) of the Exchange Act and Rules 13a-14, 13b2-1, and 13b2-2(a) thereunder, and aiding and abetting Exelon’s and ComEd’s violations of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act. The SEC seeks permanent injunctive relief, disgorgement plus prejudgment interest, a civil penalty, and an officer and director bar against her.
The SEC’s investigation was conducted by Natalie Garner, Sally Hewitt, and Kristal Olson of the Public Finance Abuse Unit and Will Saylor of the SEC’s Chicago Regional Office. The investigation was supervised by Brian Fagel. The SEC’s litigation will be conducted by Jonathan Polish. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Northern District of Illinois.