SEC Charges Maxwell Technologies with Fraudulent Scheme
According to a press announcement yesterday, the Securities and Exchange Commission has charged Maxwell Technologies, Inc., and one of its former sales executives in a fraudulent revenue recognition scheme designed to inflate the company’s reported financial results.
Maxwell Technologies, Inc., a California-based energy storage and power delivery product manufacturer, prematurely recognized revenue of its energy storage products, according to the SEC’s order.
According to the order, a former Maxwell sales executive and corporate officer, allegedly inflated the company’s revenues by entering into secret side deals with customers. The employee was charged with falsifying records in order to conceal the scheme from Maxwell’s finance and accounting personnel and external auditors.
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The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Maxwell Technologies to investors.
Broker dealers are required to perform adequate due diligence on all investment recommendations they make. They must ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be liable for investment losses through FINRA arbitration.
If you lost money investing in Maxwell Technologies, the securities attorneys at The White Law Group may be able to help you recover your investment losses. Please call the offices at 888-637-5510 for a free consultation.
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