In the Matter of Maxwell Technologies, Inc., et al.
Admin. Proc. No. 3-18408
On March 27, 2018, the Commission instituted and simultaneously settled cease-and-desist proceeding (the "Order") against Maxwell Technologies, Inc. ("Maxwell"), Van M. Andrews ("Andrews"), David J. Schramm ("Schramm"), and James W. DeWitt, Jr., CPA ("DeWitt") (collectively, the "Respondents"). The Commission found that, from December 2011 through January 2013, Maxwell, a California-based company that develops, manufactures, and markets energy storage and power delivery products, through its former officers Andrews, Schramm, and DeWitt, engaged in an accounting fraud scheme that improperly recognized over $19 million in revenue from future quarters in violation of U.S. Generally Accepted Accounting Principles. The Commission ordered Maxwell, Andrews, and DeWitt to pay civil money penalties of $2.8 million, $50,000, and $20,000, respectively; and ordered Schramm to disgorge $33,878 and pay prejudgment interest of $6,113 and a civil money penalty of $40,000. Pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, the Commission established a Fair Fund so that the civil penalties could be distributed with the disgorgement and prejudgment interest. The Respondents have since paid in $2,924,991 to an interest-bearing account at the U.S. Treasury's Bureau of Fiscal Services, with the remaining $25,000 to be paid by Andrews in two equal increments due September 23, 2018 and March 19, 2019, respectively. See the Commission's Order: Rel. No. 33-10472
On July 27, 2018, the Commission issued an order appointing Epiq Systems, Inc. as the Fund Administrator of the Fair Fund. See the Commission's Order: Rel. No. 34-83727.
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