Energy Startup, CEO Ordered To Pay SEC $3.5M

Law360, New York (August 4, 2011, 3:51 PM EDT) -- A California federal judge on Tuesday ordered Nova Gen Corp. and its CEO to pay nearly $3.5 million in civil penalties and disgorgement for raising millions of dollars from investors by fraudulently claiming to own technology that converts coal into biodiesel.

U.S. District Judge Michael M. Anello ordered the company to pay approximately $2.5 million in disgorgement and prejudgment interest and a $725,000 civil penalty. He ruled that CEO Margaret Grey must pay just more than $100,000 in disgorgement and interest, plus a $150,000 civil penalty...
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