The U.S. Securities and Exchange Commission charged Miller Energy Resources Inc., with fraudulent financial reports.
Also charged in the matter was the audit team leader at Miller Energy’s former independent auditor, which is now defunct, according to the SEC. “The allegedly inflated valuation had a significant impact, turning a penny-stock company into one that eventually listed on the New York Stock Exchange, where its stock reached a 2013 high of nearly $9 per share,” the SEC said.
The SEC alleged that the company relied on a reserve report that did not reflect fair value for certain assets and double-counted fixed assets already included in the reserve report.
The SEC says Miller Energy violated antifraud provisions of U.S. securities laws and a related SEC antifraud rule, among other allegations. The SEC’s Division of Enforcement is seeking cease-and-desist orders, civil monetary penalties and the return of allegedly ill-gotten gains.
Jeffrey Newman represents whistleblowers