Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.


Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

Broadwind Energy to Pay $1 Million for Accounting Violations

Jaclyn Jaeger | February 6, 2015

Broadwind Energy, an alternative energy company, yesterday agreed to pay a $1 million penalty to the Securities and Exchange Commission for accounting and disclosure violations.

According to the SEC, Broadwind Energy prevented investors from knowing that reduced business from two significant customers caused substantial declines in the company’s long-term financial prospects. The SEC alleges that senior management at Broadwind Energy anticipated substantial impairment of intangible assets associated with these customer relationships and privately shared this information with the company’s auditors, investment bankers, and lender.  Yet, Broadwind Energy did not disclose this information publicly to investors until several months later, when it recorded a $58 million impairment charge in its financial statements.

“In fact, Broadwind Energy conducted a public offering of its stock without...

Read this single article for $49, or click the subscribe button below to review subscription options.

Enjoy unlimited access to thousands of articles, browse five years of digital magazines, qualify for reduced admission to events, and more.