SEC Charges Fuel Cell Company with Defrauding Investors
From the Desk of Jim Eccleston at Eccleston Law LLC:
The SEC charged a California-based penny stock company, along with four corporate officers, with misleading investors about the research, development, and profitability of its purported business to manufacture power generation products such as fuel cells.
Terminus Energy, Inc. raised approximately $7.9 million from investors. The officers claimed to have a viable prototype capable of being sold and earning revenue but in fact did not have the fuel cell technology or the funding to validate their claims. The SEC alleges that the officers instead were converting substantial amounts of investor funds for their own personal use.
The SEC complaint also alleges that the company failed to disclose to investors that Terminus’ operations manager was a convicted felon who went to prison for securities fraud and was barred from participating in penny stock offerings.
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