SEC Files Suit Against Former New Generation Biofuels Chairman
The U.S. Securities and Exchange Commission filed a civil action against Lee S. Rosen, the former chairman of New Generation Biofuels Holdings Inc. (NGBF), alleging he fraudulently avoided reporting his ownership interest in the company.
Rosen will settle with the SEC without admitting or denying the allegations, according to an agency statement today. Rosen will pay a total of $911,484 in fines and will be barred from serving as a company’s officer or director.
The complaint alleges that in addition to receiving $666,000 in direct payments, he “indirectly benefited from using New Generation shares held in two trusts as partial payment in an effort to purchase a yacht.”
The SEC earlier suspended trading of Columbia, Maryland- based New Generation Biofuels, citing the company’s lack of public disclosures since the period ending June 30, 2011.
The shares closed yesterday at 0.4 cents and have declined 47 percent this year.
A phone message left for Bryan McPhee, a company spokesman, wasn’t returned. An e-mail sent to him couldn’t be delivered. Previous filings said the company makes biofuels from oils and animal fats.
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