Engine Developer Fined by SEC for Misuse of Funds

Facebook Share Icon LinkedIn Share Icon Twitter Share Icon Share by EMail icon Print Icon

Posted: June 3, 2013 at 2:59 amThe U.S.


Facebook Share Icon LinkedIn Share Icon Twitter Share Icon Share by EMail icon Print Icon

Posted: June 3, 2013 at 2:59 am

The U.S. Securities and Exchange Commission has issued a cease-and-desist order against engine developer Scuderi Group Inc. for selling unregistered securities and misusing corporate funds.

The SEC also levied a civil fine of $100,000 against Salvatore Scuderi, the company’s president and chief financial officer.

The agency says he and the West Springfield, Mass.-based company have agreed to the order and fine without admitting or denying the commission’s findings.

The Scuderi Group, which was founded in 2002, has been developing a “green” engine. The company aims to patent and license its technology to carmakers but has not yet done so.

The SEC says the company sold more than $80 million in unregistered securities between 2004 and 2011. The agency alleges that more than $3.2 million of the resulting funds was improperly channeled to Scuderi family members—many of whom did not work for the company—to pay for personal expenses, undocumented interest-free loans and estate planning services. 

Hand holding a crystal ball

We’d rather send you $15 than rely on our crystal ball…

It’s Capital Spending Survey season and the manufacturing industry is counting on you to participate! Odds are that you received our 5-minute Metalworking survey from Automotive Design and Production in your mail or email. Fill it out and we’ll email you $15 to exchange for your choice of gift card or charitable donation. Are you in the U.S. and not sure you received the survey? Contact us to access it.

Help us inform the industry and everybody benefits.


  • Battery Maker Exide Files for Bankruptcy

    Exide Technologies Inc., a maker of automotive lead-acid batteries, has filed for Chapter 11 protection for its U.S. operations after months of escalating financial and operating struggles.The Milton, Ga.-based company says it will continue to supply batteries to its customers during bankruptcy.

  • GM Develops Contingency Plan for Korea

    General Motors Co. is working on a plan for its South Korean operations in the event that North Korea’s nuclear threats escalate, says CEO Dan Akerson.He tells CNBC that if rising military tensions became a danger to GM employees and facilities, the company might pull some staff out of South Korea and try to relocate vehicle production.

  • Toyota Shakes Up Management, Structure

     President Akio Toyoda has made the broadest changes to Toyota Motor Corp.’s executive ranks, board and operating structure since he took the top job in mid-2009.Toyota’s chairman, three executive vice presidents, five senior managing officers and nine managing officers will retire.