SEC Obtains Judgment Against CEO of California Solar Panel Company
Litigation Release No. 24942 / October 8, 2020
Securities and Exchange Commission v. Nanotech Engineering, Inc., Michael James Sweaney (also known as Michael Hatton), David Sweaney, and Jeffery Gange, No. 19-cv-3633 (D.D.C. filed December 5, 2019)
The Securities and Exchange Commission announced that on October 6, 2020, the U.S. District Court for the District of Columbia entered a partial judgment against David Sweaney, the CEO of Nanotech Engineering, Inc., a California solar panel company. The SEC previously obtained a preliminary injunction and asset freeze against Nanotech, David Sweaney, CFO Michael James Sweaney, and COO Jeffery Gange for allegedly defrauding more than 100 investors.
The judgment against David Sweaney permanently enjoins him from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, permanently bars him from acting as an officer or director of any public company, and orders him to pay disgorgement, prejudgment interest, and a civil penalty in an amount to be determined upon a motion of the SEC.
The SEC also filed an amended complaint adding allegations that Nanotech was entirely a fraud, and that its purported revolutionary solar panel, the "Nanopanel," never existed. The litigation is ongoing.
The SEC's continuing litigation is led by Gregory Bockin and Christopher Bruckmann and supervised by Stephan Schlegelmilch. The SEC's investigation, which is ongoing, is being conducted by Pei Chung, Elizabeth Doisy and Jeffrey Anderson and supervised by Deborah A. Tarasevich and Jennifer Leete.