Advanced Emissions Systems, Inc. Admin. Proc. File No. 3-17892

Aug. 11, 2022

SEC v. Mark McKinnies
Case No. 17-cv-00566

On March 29, 2017, the Commission filed a complaint (the “Complaint”) against AES’s former Chief Financial Officer, Mark McKinnies (“McKinnies”). The Complaint alleged that McKinnies violated the federal securities laws by approving AES's filing of false and misleading financial statements from at least 2011 through 2013 and oversaw the inaccurate recording of transactions in the company's books and records. See the Complaint.

McKinnies was ordered, and has paid, a total of $238,692 in disgorgement, prejudgment interest, and a civil penalty.  The Commission was ordered to hold all funds, together with interest and income earned thereon, pending further order of the Court. See McKinnies’ Final Judgment.

Also, on March 29, 2017, the Commission instituted and simultaneously settled cease-and-desist proceedings (the “Order”) against Advanced Emissions Systems, Inc. (“AES”).  In the Order, the Commission found that, from at least 2011 through 2014, AES violated federal securities laws by materially misstating its financial statements and results, during which time, it raised over $60 million in two equity offerings.  Additionally, AES’s internal control over financial reporting also was deficient.  The Commission ordered, and AES has paid, $500,000 in civil penalties.  The Commission ordered that the penalty will be held pending a decision whether the Commission, in its discretion, will seek to distribute the funds, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002 or transfer the funds to the U.S. Treasury.  See the Commission’s Order: Release No. 33-10329.

On January 26, 2023, the Commission created a Fair Fund, under Section 308(a) of the Sarbanes-Oxley Act of 2002, for the civil penalties paid by AES and transferred the funds to the related district court case, SEC v. Mark McKinnies, No. 1:17-cv-0566 (D. D.C. March 29, 2017), for distribution to harmed investors in accordance with a distribution plan to be approved by the Court.

For more information, please contact the Commission:

Office of Distributions

Last Reviewed or Updated: Feb. 8, 2023