Additionally, the defendants allegedly misled investors about the purported validation of PowerStack by Siemens and the use of proceeds from Thunderbird’s stock offering.
The SEC noted that in its press releases and YouTube video, the defendants claimed that Siemens tested Thunderbird’s PowerStack wind turbine technology and confirmed its efficiency and production ability.
The defendants’ claims were “simply not true,” according to the Commission, citing the fact that “Siemens only evaluated a conceptual model of the PowerStack.”
Furthermore, the SEC alleged Hinds, Goldstein and Van Arem hired a national network of sales agents to attract prospective investors by using false claims in emails and cold calls about the offering.
Moreover, the Commission alleged that the defendants misused more than 40% or $850,000 of investor funds to enrich themselves and pay sales agents to deceive and defraud more unsuspecting investors.
According to the SEC, the defendants violated the securities registration, broker-dealer registration, and antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.
