Scuderi Group, LLC, was issued a cease-and-desist order by the U.S. Securities and Exchange Committee on May 30, 2013, and the order states that the company gave misleading disclosures regarding the use of offerings proceeds. This indicates that it may not be a reputable group.
According to the cease-and-desist order from the SEC to Scuderi Group, the company sold unregistered, untaxed stock offerings and misled investors regarding their use, as stated on SecuritiesLitigators.com. The order charges that the group made sizable payments to Scuderi family members for no corporate purpose and gave them loans that were undocumented. Scuderi group and its president consented to the cease-and-desist order without admitting or denying the findings.
Scuderi Group was formed in 2002 and is responsible for the development and marketing of their own prototyped efficient internal combustion engines, says Green Car Congress. Scuderi Group's business plan is to license their designs to original equipment manufacturers, but they had not publicly announced any licensing deals as of June 2013. The SEC stated in their release that between 2008 and 2011, Scuderi Group sold over $75 million in securities while not earning any revenue. During this time, the president authorized more than $3.2 million in spending.
Scuderi Group said that this revenue was raised from individual investors and that it never reported these earnings with the SEC because they were exempt under safe harbor laws, according to Green Car Congress. To the contrary, the SEC argued that these dealings did not qualify for registration exemptions because Scuderi Group made offerings that greatly exceeded legal investor limits, failed to give investors audited financial statements, and actively attempted to evade SEC requirements.
Later in 2013, tThis he law firm of Shapiro, Haber and Urmy filed a class action lawsuit against Scuderi Group, representing Massachusetts investors in the company.