Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...
By Richard Hill
Oct. 17 — Lime Energy Co. agreed to pay $1 million to settle SEC allegations it prematurely recognized $20 million in revenue to meet internal targets ( SEC v. Lime Energy Co., S.D.N.Y., 1:16-cv-08088, 10/17/16 ).
Four former executives also agreed to pay a total of $125,000 to settle related allegations, but the Securities and Exchange said its investigators found no personal misconduct by the company's then-chief executive officer and chief financial officer.
Nevertheless, the two—CEO John O'Rourke and CFO Jeffrey Mistarz—repaid the company $67,728 and $118,196, respectively, for cash bonuses and stock awards they received between 2010 and 2012, when the alleged violations occurred. That made it unnecessary for the SEC to pursue a clawback action against them, the agency said in a statement Oct. 17.
Lime—an acronym for “Less is More Efficient”—provides “energy efficiency projects to small businesses,” according to its website.
Former vice president of operations Joaquin Alberto Dos Santos Almeida and former director of operations Karan Raina developed procedures that enabled the company to book revenue on newly signed contracts based on documentation received before the end of 2010. “But when documentation did not arrive in time, they allegedly went ahead and booked the revenue anyway,” the SEC said.
Raina agreed to pay a $50,000 fine, as did former executive vice president James Smith. Former corporate controller Julianne Chandler agreed to pay a $25,000 fine and to be suspended from acting as a public company accountant for at least five years. Smith and Chandler also agreed to five-year officer-and-director bars, and Almeida to a permanent officer-director bar. They settled without admitting or denying the allegations.
The complaint was filed in the U.S. District Court for the Southern District of New York.
To contact the reporter on this story: Richard Hill in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Phyllis Diamond at email@example.com
The complaint in the case can be seen at http://www.bloomberglaw.com/public/document/v_Lime_Energy_Co_et_al_Docket_No_116cv08088_SDNY_Oct_17_2016_Cour.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)