In the high-stakes world of oil and gas, sometimes the fiercest battles aren’t fought over barrels, but in boardrooms and exclusive country clubs.
That’s exactly what’s unfolding at Sentinel Peak Resources, where former CEO Michael Duginski has filed a lawsuit accusing his ex-business partner of spreading vicious rumors to sabotage him—and grab control of the company’s vast $3 billion oil reserves.
Fired CEO Claims Business Partner Spread False Swinger Rumors to Steal His Job
Michael Duginski, who co-founded Sentinel Peak Resources and led the Denver-based energy company until May, says he was ousted based on baseless accusations.
Officially, the board cited “unacceptable behavior in the workplace” as the reason for firing him.
But in a lawsuit filed late July, Duginski points the finger directly at his jealous co-founder, George Ciotti, who took over as CEO shortly after Duginski’s dismissal.
According to Duginski’s legal claim, Ciotti was bitter about being passed over as successor and concocted a “sham investigation” to force him out and claim the CEO spot.
Country Club Gossip Sparks Damage to Reputation and Career
Duginski’s suit reveals the disturbing fallout of the rumors—centered at the Glenmoor Country Club in Cherry Hills Village—where other members began whispering about his “lifestyle.”
The allegations? That he and his wife are swingers, a claim he emphatically denies.
This gossip wasn’t just confined to the country club.
Duginski says Ciotti deliberately spread the false story among company executives and employees, damaging his reputation and causing him to lose business opportunities as colleagues in his industry started doubting his character.
Investigation Lacks Transparency as CEO Placed on Leave
Duginski says Sentinel Peak was thriving and even exploring a potential sale when, in December, he was blindsided by a memo indicating a probe had uncovered “a concerning level of inappropriate behaviors” putting the company at risk.
Yet, despite being put on leave, he was never clearly told what he had done wrong.
Even months later, when an independent investigator finally questioned him in April, the allegations remained vague and undefined.
Board Ends Employment Without Sharing Probe Results
Shortly after the investigation, Duginski received a letter stating that there were “sufficient grounds to end your employment for cause.”
However, when he requested the investigation’s findings, the company refused to provide them.
This lack of transparency adds fuel to Duginski’s claim that the entire process was designed to push him out unfairly.
Lawsuit Seeks Damages for Lost Wages and Investments
In his lawsuit, Duginski names both Sentinel Peak and Ciotti, accusing Ciotti of defamation and seeking compensation.
He’s demanding $650,000 in back wages, $3 million for his investments in the company, and the yet-to-be-determined value of his company stock.
Sentinel Peak Controls Major Oil Reserves as Controversy Unfolds
Sentinel Peak Resources holds oil reserves valued at around $3 billion, mostly in California, making this power struggle all the more significant given the company’s size and influence in the energy sector.
DailyMail.com has reached out to Sentinel Peak for comment but has not yet received a response.
