SEC Accuses Alternative Fuel Co. JBI Of Stock Fraud

Law360, New York (January 4, 2012, 7:32 PM EST) -- The U.S. Securities and Exchange Commission sued JBI Inc. Wednesday for securities and accounting fraud, claiming the alternative energy technology developer deliberately overstated the value of its most important asset so it could woo investors.

The SEC claims that the over-the-counter-traded JBI, which is purportedly developing a process to convert waste plastic to oil, raised $8.4 million from private investors before admitting in July 2010 that it had overvalued its single largest asset in previous accounting statements.

The SEC says that asset, so-called media credits JBI...
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