Fraud Duke Energy's Code of Business Ethics

Fraud, or the potential of fraud, compromises the integrity of our financial reporting system and the safety of our assets, both physical and intellectual.

Fraud is the act of intentionally misrepresenting or concealing facts that cause another party to act or not act in reliance on the misrepresentation or concealment. Fraud may be committed by one person or by two or more (collusion) and may be committed by internal and/or external parties (vendors, customers, etc.).

Our Responsibilities

All employees must understand what constitutes fraud and refrain from engaging in fraudulent activity including collusive fraud which bypasses existing controls. Moreover, employees are responsible for reporting all instances of potential fraud.

Duke Energy employees must:

  • Understand what constitutes fraud and refrain from engaging in fraudulent activity.
  • Report all instances of potential fraud.

Employees must not:

  • Engage in fraudulent activity including collusive fraud which bypasses existing controls.

Q&A

Q. What are some examples of fraud?
A. Some examples of fraud may include:

Fraudulent financial reporting

  • Intentional reporting of false expense or revenue data which improperly states amounts reported on publicly filed financial statements.
  • Intentional misstatement of price data reported for price index purposes.
  • Intentional misapplication of accounting principles relating to amounts, classification, manner of presentation, or disclosure.
  • Intentional misstatement of accounting estimates and judgments.

Misappropriation of assets

  • Submitting an inaccurate expense report for personal expenses.
  • Excessive personal use of company supplies or assets.
  • Fraudulent financial reporting (see above) for purposes of increasing personal gain through incentive measure calculations.
  • Improper time reporting with intent to defraud.

Corruption and other fraud related malfeasance

  • Overriding existing controls, rendering the controls ineffective.
  • Falsifying personal credentials.
  • Tampering with documents.

Q. What are certain examples of fraud in the energy market?
A. Market Manipulation: Any action, transaction, or conspiracy for the purpose of impairing, obstructing or defeating a well-functioning market, including such actions as:

  • Wash trades: Any pair of offsetting trades entered into simultaneously or by pre-arrangement with the same counterparty, for the same product, involving no economic risk and no net change in beneficial ownership.
  • Collusion with another party to manipulate market prices, market conditions or market rules.
  • Earnings Manipulation: Transactions made in violation of accounting rules (GAAP in U.S.) in order to beneficially represent the firm’s financial performance, usually through the artificial inflation of revenues or deflation of expenses.
  • False Reporting: Knowingly submitting false or misleading information, or omitting material information, to Index Price Publishers or governing regulators.