Energy Storage Company Engages in Fraudulent Revenue Recognition

1423
SHARE

“Maxwell recorded revenue before it was actually earned in order to make investors believe that the company’s most important business segment, ultracapacitors, was growing faster than it really was,” said Charles Cain, Chief of the SEC Enforcement Division’s FCPA Unit. “This action demonstrates our commitment to holding issuers and their executives accountable when they deny investors the ability to make investment decisions based on accurate financial information.”

Maxwell Technologies and its executives violated numerous federal securities laws. Specifically, the charges involve violating antifraud, books and records, and internal accounting controls. In typical form, both Maxwell Technologies and Andrews consent to the wrongdoing without admitting or denying the allegations and will pay penalties of $2.8 million and $50,000, respectively. Further, Andrews may not serve as an officer or director of a public company for five years. And finally, former CEO Schramm agrees to pay roughly $80,000 in disgorgement, prejudgment interest, and penalty. The former controller DeWitt agrees to pay a $20,000 penalty.

1
2
3
SHARE
Previous articleMultiple Lives Lost in Deadly Waffle House Shooting
Next articleTelomerase Activation Sciences and Deceptive Advertising
Peter Moreno
From the concrete jungle of Wall Street as an Investment Adviser to the narco-infested jungles of Colombia, as a U.S. Marine Corps Lieutenant Colonel. His first hand knowledge of both finance and crime present a unique perspective on the topic of financial crimes. Although he may not be the "most interesting man alive," his friends assure him he's in the top 10. He delivers provocative written insights on controversial topics, sips single malt scotch with a smile, and fancies a good cigar.