SEC Loses Fraud Claims Against Water Purifier Co. Execs

Law360, New York (December 12, 2013, 2:20 PM EST) -- A California federal judge on Tuesday rejected the U.S. Securities and Exchange Commission's accounting fraud allegations against two former executives of Basin Water Inc., finding the SEC hadn't met its burden of proof to show fraud had taken place.

Following an eight-day bench trial, U.S. District Judge Manuel L. Real found the SEC hadn't proven Basin’s former Chief Financial Officer Thomas C. Tekulve and CEO Peter Jensen had engaged in “sham transactions” to boost reported revenues at their California-based startup, which sells systems for purifying polluted...
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