Engine Developer Fined by SEC for Misuse of Funds
Posted: June 3, 2013 at 2:59 amThe U.S.
Posted: June 3, 2013 at 2:59 am
The U.S. Securities and Exchange Commission has issued a cease-and-desist order against engine developer Scuderi Group Inc. for selling unregistered securities and misusing corporate funds.
The SEC also levied a civil fine of $100,000 against Salvatore Scuderi, the company’s president and chief financial officer.
The agency says he and the West Springfield, Mass.-based company have agreed to the order and fine without admitting or denying the commission’s findings.
The Scuderi Group, which was founded in 2002, has been developing a “green” engine. The company aims to patent and license its technology to carmakers but has not yet done so.
The SEC says the company sold more than $80 million in unregistered securities between 2004 and 2011. The agency alleges that more than $3.2 million of the resulting funds was improperly channeled to Scuderi family members—many of whom did not work for the company—to pay for personal expenses, undocumented interest-free loans and estate planning services.