CEO Stung For Securities Fraud
The chief executive officer of RVPlus Inc., a publicly traded microcap company, receives a conviction at trial for orchestrating a multi-million securities fraud scheme using false reports with the U.S. Securities and Exchange Commission (SEC). Former CEO Cary Lee Peterson, of Phoenix, Arizona, is found guilty on all three counts of the indictment. Specifically, the charges include two counts of false certification in SEC filings and one count of securities fraud. The evidence was so compelling that it only took the jury about an hour before returning its verdict.
False SEC Reporting
Peterson’s false reports to the SEC are extensive in nature. For example, Peterson falsely certifies to the SEC that RVPlus enters into a contract worth $1.8 billion. Allegedly, the contract is with the Ministry of Environment for Katsina State within the Federal Republic of Nigeria. The scope of work is to provide unspecified green energy products and services. Yet another example is when Peterson falsely certifies to the SEC that RVPlus enters into a contract worth $90 million. In this instance, the contract is with the Commission of Foreign Affairs to the Senate for the Republic of Haiti. A third illustration of Peterson falsely certifying facts to the SEC is his claim that RVPlus enters into a contract worth $10.5 million with the Federal Ministry of Planning & Economic Affairs for the Republic of Liberia.