SEC Files Investment Fraud Charges Against a Wind Company in South Florida Federal Court
On July 14th, 2020, the Securities and Exchange Commission (SEC) announced investment fraud charges against Thunderbird Power Corp., an Arizona-headquartered wind power company. According to the allegations raised in the South Florida federal court, the company defrauded investors out of more than $1.9 million through the sale of unregistered securities. Here, our Miami investment fraud attorneys discuss the charges against Thunderbird Power Corp. and three of its corporate officers.
SEC Complaint: Thunderbird Power Corp.
Background
In a legal complaint filed in the United States District Court for the Southern District of Florida, the SEC named four defendants: Thunderbird Power Corp, Richard Hinds, Anthony Goldstein, and John Alexander van Arem. The three individuals were all high-ranking officers at the company.
The Arizona-based company Thunderbird represented itself as developing highly advanced, energy efficient wind power technology. In 2016, Mr. Hinds, Mr. Goldstein, and Mr. van Arem crafted a Private Place Memorandum (PPM) for the purposes of selling unregistered securities of Thunderbird to investors.
Allegations
Federal regulators contend that Thunderbird’s wind power technology did not actually live up to the promises that were made to investors. Using press releases, a website, videos, and other marketing materials, Thunderbird sold itself as having a proven technology that was more energy efficient than any other existing wind power technology on the market. The company claimed that its technology had been verified and validated by independent experts.
The SEC alleges that these claims were material misrepresentations, material omissions, and outright false statements. As an example, the company’s claim that its technology had been independently verified by Siemens was deeply misleading. While Thunderbird claimed that its technology had been validated back in 2016, the company did not actually build a wind turbine until 2018.
Based on the false representations made to investors, Thunderbird Power Corp. took in more than $1.9 million from at least 60 different investors. Many of these investors were from Florida. The SEC alleges that investor funds were misappropriated. A third of the funds were used to pay commissions to sales agents and other funds were siphoned off by the corporate officers of the firm.
Proposed Sanctions
In the South Florida federal court, the SEC seeks conclusions of fact and law against Thunderbird Power, Mr. Hinds, Mr. Goldstein, and Mr. van Arem. Additionally, the SEC wants the court to impose all appropriate sanctions and penalties. Among other things, the agency wants:
- A permanent injunction;
- A penny stock ban;
- Disgorgement of ill-gotten gains;
- Restitution to affected investors. and
- Payment of civil penalties.
Call Our Miami, FL Securities Fraud Lawyers for Immediate Help
At Carlson & Associates, P.A., our Florida investment fraud attorneys provide reliable, results-focused legal advocacy to investors. If you or someone you know suffered financial losses in unregistered securities, we are ready to help. To arrange a confidential initial appointment with an attorney, please call us today. We represent clients in Miami, South Florida, and throughout the wider region.
Resources:
sec.gov/litigation/complaints/2020/comp-pr2020-154.pdf
sec.gov/news/press-release/2020-154
