U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22924 / February 11, 2014
Securities and Exchange Commission v. Peter L. Jensen and Thomas C. Tekulve, Jr., Civil Action No. CV11-05316 R (C.D. Cal., filed June 24, 2011)
Court Finds Defendants Not Liable in Financial Fraud Case
On December 11, 2013, after a two-week bench trial, United States District Judge Manuel Real of the Central District of California found defendants Peter L. Jensen and Thomas C. Tekulve, Jr. not liable with respect to each of the Commission’s claims. On June 24, 2011, the Commission filed a Complaint against the defendants alleging that they engaged in a fraudulent scheme to materially inflate the revenues of Basin Water, Inc., based in Rancho Cucamonga, California, in 2006 and 2007 when Jensen was the CEO and Tekulve was the CFO of the company. The Commission further alleged that Jensen engaged in insider trading in Basin Water securities while he possessed material nonpublic information that the company’s revenues were materially inflated.