Former CEO and founder of Energy XXI Ltd. John D. Schiller Jr. has been charged by the federal government for fraudulently obtaining more than $10 million in personal loans from company vendors and a candidate for the company’s board during his time with the company, according to the U.S. Securities and Exchange Commission (SEC).

The allegations were announced by the SEC on July 16. Schiller departed from his position as director, CEO and president of the Gulf of Mexico Shelf-focused company in 2017.

“Schiller consented, without admitting or denying the SEC’s charges, to a permanent injunction that enjoins him from violating anti-fraud and reporting provisions of the federal securities laws, imposes a $180,000 penalty, and bars him from serving as an officer or director of a public company for five years,” the SEC said in a news release.

The SEC alleges that in 2014 Schiller “extracted more than $7.5 million in undisclosed personal loans from company vendors in exchange for business contracts with Energy XXI.” The feds also allege Schiller got a $3 million loan from Norman Louie, a portfolio manager at Energy XXI’s largest shareholder Mount Kellett Capital Management LP, a few weeks before Louie was appointed to Energy XXI’s board.

The SEC said Schiller did not disclose the vendor loans or the Louie loan to Energy XXI.

In addition, the SEC alleges Schiller received “undisclosed compensation and perks in the form of lavish social events, first-class travel, a shopping spree, donations to Schiller-preferred charities, legal expenses for personal matters, and an office bar stocked with high-end liquor and cigars.” This resulted in Energy XXI failing to report in its executive compensation disclosures at least $1 million in excess compensation over a five-year period.

“Executives of public companies have a duty to act in the best interests of investors,” Anita B. Bandy, an assistant director in the SEC’s Division of Enforcement, said in the release. “Secret backroom deals for the benefit of corporate insiders violate those duties and deprive investors of important information.”

Also charged by the SEC were Louie in connection with hiding his loan to Schiller and Mount Kellett, which was charged with failing to disclose its activist plan to place Louie on Energy XXI’s board, the SEC said. Both consented, without admitting or denying the findings, to an SEC order that they cease and desist from committing or causing any violations or any future violations of certain reporting and disclosure provisions of the federal securities laws.

In addition, Louie must pay a $100,000 penalty and Mount Kellett, which is an SEC-registered investment adviser, must pay a $160,000 penalty, the SEC said.