What happened with the Scuderi Engine investment scandal?


Quick Answer

As of March 2013, the Scuderi Group was in the early stages of a lawsuit that a Toyota company subsidiary brought against it seeking to recover the $150,000 investment it gave the Scuderi Group for the research of the Scuderi engine. Apart from this lawsuit, the Scuderi Group still has a pending lawsuit from another Scuderi investor Paul Fournier for the same Scuderi investment scheme. Back in 2013, the Securities and Exchange Commission fined the Scuderi Group $100,000 for misleading its investors on how the group used of the money it has collected from them, according to Long Island Business News.

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Full Answer

The Scuderi engine is an automobile engine prototype, which in theory should be lighter than conventional engines, use up to 30 percent less fuel and produce only half of the pollutants emitted by conventional engines. Carmelo Scuderi, the inventor of the engine, died in 2002. His children formed the Scuderi Group in the same year supposedly to bring their father's design to market, build prototypes and attract big automobile companies, according to MassLive.

In the years since 2002, the Scuderi Group was able to raise some $80 million, mostly from investors from Long Island, New York for the development of the Scuderi Engine. Toyota subsidiary Hino Motors was one of its investors. In 2013, it came into light that despite the $80 million, the Scuderi Group still had no revenue and that the money was spent mostly just to keep the company going.

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