The Securities and Exchange Commision (SEC) recently filed charges against four former officers of SMF Energy Corp. for inflating the company’s revenue through a fraudulent billing scheme. The SEC alleges that SMF overbilled certain customers for fuel that was not delivered and added surcharges not inline with the customer’s contract. As a result, the Florida-based SMF allegedly overstated its revenues, profit margins, shareholders equity and net income.
The SEC’s complaint further alleges the overbilling began in 2004. However, it wasn’t until later that the scheme made a difference between the company being profitable and posting net losses. The alleged overstated revenues net income was reflected in SMF’s annual reports for years 2010 and 2011, and its quarterly reports in 2011 and the first half of 2012.
The four former officers named in the SEC complaint included CEO Richard E. Gathright, chief financial officer Michael S. Shore, chief accounting officer Laura P. Messenbaugh, and senior vice president of sales Robert W. Beard.
The foregoing information, which is publicly available, is being provided by The White Law Group.
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