An energy magnate has accused his business partner of spreading rumors about him being a swinger in their fancy Colorado country club so he could steal his job overseeing $3billion in oil reserves.
Michael Duginski, co-founder and CEO of Sentinel Peak Resources, was fired by his own company’s board in May after he was accused of ‘exhibiting unacceptable behavior in the workplace.’
But in a lawsuit filed July 28, Duginski said the false claims came from his jealous co-founder George Ciotti, who replaced him as CEO of the Denver-based energy firm last month.
‘Mr. Ciotti wanted to be the CEO of Sentinel Peak Resources, was disappointed not to be considered Mr. Duginski’s successor, and therefore initiated a sham investigation into Mr. Duginski to create a vacancy for the role he coveted,’ said the lawsuit, seen by Business Den.
Duginski claimed in the suit that he realized what happened at the Glenmoor Country Club in Cherry Hills Village where other members started inquiring about his ‘lifestyle.’
He said he has lost business opportunities ‘as colleagues within his community and industry now have misconceptions about his character.’
‘Mr. Ciotti had been spreading untrue rumors about Mr. Duginski in the first part of 2025, specifically that Mr. Duginski and his wife are swingers,’ the lawsuit read.
‘Mr. Ciotti shared the same information with executives and employees at SPR. This accusation is untrue, and Mr. Ciotti knew it was false but wanted to harm Mr. Duginski’s reputation.’
Duginski said the company was doing well and considering a possible sale when he was handed a memo in December that stated a probe had uncovered ‘a concerning level of inappropriate behaviors that is putting the company at risk.’
He said he was not informed what he had done wrong as he was placed on leave, according to the lawsuit.
Duginski had still reportedly not been told what the claims against him were until April, when an independent investigator interviewed him about the issue but still kept the questions vague, per the court filing.
The ousted CEO said he then received a letter from the board saying the probe on his behavior concluded ‘there are sufficient grounds to end your employment for cause.’
Duginski said in his lawsuit that he asked the company for a copy of the probe’s results but never received one.
Sentinel Peak owns $3billion of oil reserves mostly in California.
Duginski named Sentinel Peak as a defendant and also sued Ciotti for defamation.
He asked for $650,000 in back wages, $3 million that he invested in Sentinel Peak, and the unknown value of his company stock.
The Daily Mail has reached out to Sentinel Peak for comment.