Securities Regulation Daily Wrap Up, FRAUD AND MANIPULATION—N.D. Ohio: CEO overstated his electric vehicle company’s metrics, fraudulently raising $112.5M, (Jul 15, 2026)
Organizations Mentioned:Battle Motors, Inc.
By Jay Fishman, J.D.
He and the company were collectively penalized $709,352.
The SEC settled with an Ohio electric vehicle manufacturer and its Chief Executive Officer for misleading two outside investors by overstating various performance metrics while knowing the statements were false. For having violated federal Securities Act Sections 17(a)(2) and (3), the defendant company and CEO agreed to civil monetary penalties of $591,127 and $118,225, respectively, and a permanent injunction from future violations. Additionally, the Commission imposed a two-year officer/director bar on the CEO (SEC v. Patterson, No. 5:26-cv-1591 (N.D. Ohio filed July 10, 2026)).
Electric vehicle conversion overstatements. In February 2021, the company bought a fleet of trucks to convert them into electric vehicles. Then, to raise money for the conversion, the CEO made a November 2021 securities offering that was accepted by two outside investors. But the SEC’s complaint alleged that the company raised $112.5 million by making the following false and misleading statements to the investors:
That the company received 115 electric vehicle purchase orders totaling $30 million in only three months; in reality, when this statement was made, the company had only eight vehicle purchase orders amounting to about $2 million in actual sales; and
That the company’s dealer network comprised 180 dealers at 320 locations; in reality, when this statement was made, the company allegedly had a dealer network of only 47 dealers at 156 locations.
This is case No. 5:26-cv-01591.
Attorneys: Madison G. Loomis for the SEC.
Companies: Battle Motors, Inc.
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