Penalties of Over $8M Imposed on Stable Road Acquisition Company and Others
The Securities and Exchange Commission (SEC) filed fraud charges against special purpose acquisition company (SPAC) Stable Road Acquisition Company and its CEO Brian Kabot. The company’s sponsor SRC-NI, proposed merger target Momentus Inc., and the latter’s ex-CEO Mikhail Kokorich are also facing charges.
The regulator is accusing them of making misleading claims to investors about the target’s technology and national security risks involving Kokorich. While the Commission’s lawsuit against Kokorich will continue to move forward, the other parties reached settlements with the regulator. This included paying $8M in penalties.