Chicago-area Alternative Energy Company Charged For Accounting And Disclosure Violations
A Chicago-area alternative energy company, its former CEO and its CFO are being charged for accounting and disclosure violations that prevented investors from knowing about substantial declines in long-term prospects. The Securities and Exchange Commission alleged that senior management at Broadwind Energy had anticipated a decline after the reduced business of two significant customers. But the company didn't disclose a $58 million impairment charge in financial statements until several months later or to investors and conducted a public offering of its stock without the impairment being recorded, the SEC said. During this time, the CEO authorized public filings with misrepresentations while the CFO failed to ensure the statements were accurate. The company paid a $1 million penalty and the CFO and former CEO will pay a combined total of nearly $700,000 in disgorgement and penalties.
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