SEC Settles With Energy Storage Firm Maxwell for Over $2.8M

Energy storage firm Maxwell Technologies Inc. will pay over $2.8 million to settle SEC allegations of fraudulent revenue recognition.

Maxwell will pay the Securities and Exchange Commission $2.8 million to resolve the fraudulent revenue recognition allegations and former sales executive Van Andrews will pay $50,000, according to a settlement. Former CEO David Schramm and former controller James DeWitt also settled allegations of failure to adequately respond to red flags about Andrews and Maxwell’s conduct.

Maxwell prematurely recognized revenue from energy storage product sales, the SEC said. Andrews created “secret side deals” with Maxwell customers and then falsified records to ...