WEST SPRINGFIELD, Mass. (WWLP) - The Securities and Exchange Commission fined the President of a West Springfield company $100,000.
The Scuderi Group has been developing an ultra-efficient engine for cars since 2002. The SEC claims the company gave family members millions of dollars in bonuses and loans, some who were not employees of the company. In total about $3.2 million dollars in improper payments were made. The SEC did not find any fraud or deception and the Scuderi Group believes this penalty will have no impact on engine development. Scuderi Group President Salvatore Scuderi was assessed a $100,000 civil penalty.
The SEC order required the Scuderi Group to tell all investors about the settlement, pay the fine and account for all the payments made to family members. The SEC was looking into the Scuderi Group for about 2 and a half years.
The Scuderi Group sent a letter to all of its investors last week and again this week to explain the SEC's order. In it, it describes how the widow of the company's founder was paid $82,500 a year for between 2008 and 2011. It also describes how in that same time period, a Scuderi brother received $60,000 a year on paid leave, he has since been terminated. The letter also states that the SEC did not make any allegations about the efficacy of the Scuderi engine, the company's patent portfolio or the future prospects of the company.
Bill Wrinn, Director, Marketing/Communications for the Scuderi Group sent 22News this statement, "We are pleased to put the matter behind us and continue moving the Scuderi Engine technology forward. This agreement does not impact the development of the Scuderi Split-Cycle Engine by Southwest Research Institute or our other development partners. The company remains engaged, on a confidential basis, with a number of engine manufacturers to evaluate the potential of the Scuderi technology. With over 200 patents issued and 340 patents pending in 50 countries worldwide, the Scuderi Split-Cycle Technology continues to advance as a compelling alternative to the conventional internal combustion engine."
The Scuderi Group has been developing an ultra-efficient split-cycle engine for cars since 2002. The group has received more than $1 million dollars from the Federal Government and raised about $80 million from investors.
A spokesman for the Scuderi Group told 22News the company has a major announcement about an agreement with an engine manufacturer on Thursday.
The Scuderi Group designs energy efficient engines for cars, natural gas generators for marine vessels and storage units for generating and storing energy.