Environmental Emissions Company Settles Negligent Reporting Charges
A Colorado-based environmental solutions company, Advanced Emissions Solutions, Inc., settled SEC charges that it: (i) "failed to record a significant loss contingency in connection with an adverse arbitration ruling against the company"; (ii) "prematurely recognized revenues on long-term contracts"; (iii) "failed to properly account for warranty accruals"; (iv) "improperly consolidated a joint venture in Advanced Emissions' balance sheet accounts"; and (v) "overstated revenues and gross profits from one of its subsidiaries." The company agreed to pay a civil monetary penalty of $500,000. In a related case, the company's former chief financial officer settled SEC charges that he violated books and records requirements and approved the company's filing of false and misleading financial statements during a two-year period in which the company raised over $60 million through equity offerings. The chief financial officer agreed to be barred from acting as an officer or director of a public company for five years, and to pay disgorgement, prejudgment interest and a penalty totaling $238,692.