{"id":2163,"date":"2018-03-29T19:03:29","date_gmt":"2018-03-30T00:03:29","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=2163"},"modified":"2022-03-22T15:57:53","modified_gmt":"2022-03-22T20:57:53","slug":"allegations-of-fcpa-violations-inflation-schemes-and-improper-audits-lead-to-sec-fraud-cases","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/allegations-of-fcpa-violations-inflation-schemes-and-improper-audits-lead-to-sec-fraud-cases\/","title":{"rendered":"Allegations of FCPA Violations, Inflation Schemes, and Improper Audits Lead to SEC Fraud Cases"},"content":{"rendered":"<p>To settle an Securities and Exchange Commission case, Maxwell Technologies, Inc. and one of its former sales executives and officers, Van Andrews, have agreed to pay $2.8M and $50K in penalties, respectively, but without denying or admitting to the regulator\u2019s allegations. They are not, however, admitting to or denying the SEC\u2019s finding that they were involved a fraudulent revenue scam that inflated the energy storage company\u2019s reported financial results.<\/p>\n<p>The regulator\u2019s order said that the company acknowledged revenue from ultracapacitor sales \u201cprematurely\u201d so as to better fulfill the expectations of analysts. Andrews is accused of inflating revenues through secret customer deals and by doctoring records to hide the scam from outside auditors, as well as company finance and accounting staff.<\/p>\n<p>As part of his settlement, Andrews is barred for five years from taking on an officer or director role in a public company. Also settling charges against them related to this matter are ex-Maxwell CEO David Schramm, who will pay almost $80K in disgorgement and prejudgment interest, plus a penalty. Ex-Maxwell controller James DeWitt will pay a $20K penalty. The two men are accused of not doing an adequate enough job of addressing red flags indicating that misconduct may have been afoot.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/allegations-of-fcpa-violations-inflation-schemes-and-improper-audits-lead-to-sec-fraud-cases\/\"  title=\"Continue Reading Allegations of FCPA Violations, Inflation Schemes, and Improper Audits Lead to SEC Fraud Cases\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>To settle an Securities and Exchange Commission case, Maxwell Technologies, Inc. and one of its former sales executives and officers, Van Andrews, have agreed to pay $2.8M and $50K in penalties, respectively, but without denying or admitting to the regulator\u2019s allegations. They are not, however, admitting to or denying the SEC\u2019s finding that they were [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3760,3795,3761],"tags":[2597,3019,3020],"class_list":["post-2163","post","type-post","status-publish","format-standard","hentry","category-sec-enforcement","category-sec-settlements","category-securities-and-exchange-commis","tag-fcpa-violations","tag-improper-audits","tag-inflation-schemes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Allegations of FCPA Violations, Inflation Schemes, and Improper Audits Lead to SEC Fraud Cases | SSEK Law Firm<\/title>\n<meta name=\"description\" content=\"To settle an SEC case, Maxwell Technologies, Inc., have agreed to pay over $2.8M in inflation schemes penalties\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/allegations-of-fcpa-violations-inflation-schemes-and-improper-audits-lead-to-sec-fraud-cases\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Allegations of FCPA Violations, Inflation Schemes, and Improper Audits Lead to SEC Fraud Cases | SSEK Law Firm\" \/>\n<meta name=\"twitter:description\" content=\"To settle an SEC case, Maxwell Technologies, Inc., have agreed to pay over $2.8M in inflation schemes penalties\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Allegations of FCPA Violations, Inflation Schemes, and Improper Audits Lead to SEC Fraud Cases | SSEK Law Firm","description":"To settle an SEC case, Maxwell Technologies, Inc., have agreed to pay over $2.8M in inflation schemes penalties","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/allegations-of-fcpa-violations-inflation-schemes-and-improper-audits-lead-to-sec-fraud-cases\/","twitter_card":"summary_large_image","twitter_title":"Allegations of FCPA Violations, Inflation Schemes, and Improper Audits Lead to SEC Fraud Cases | SSEK Law Firm","twitter_description":"To settle an SEC case, Maxwell Technologies, Inc., have agreed to pay over $2.8M in inflation schemes penalties","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; 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