SEC files complaint against CEO for alleged stock fraud

The Securities and Exchange Commission (SEC) announced today that it has filed a complaint in the U.S. District Court of Southern Mississippi against U.S. Sustainable Energy Corporation’s (USSEC) CEO, John Rivera, who is accused of using his company to perpetuate stock fraud.

The complaint alleges that in the time between October 2006 and February 2007 Rivera issued a series of false and misleading press releases regarding USSEC’s business and technology in producing bioorganic fuels from agricultural feed stocks.

The SEC further accuses Rivera of directing the second defendant listed in the case, Alice Price, to sell her USSE shares at artificially inflated prices, generating approximately $721,462 in profits.

Rivera, who is also listed as chairman and CEO of Sustainable Power Corporation in Baytown, dismissed the allegations as false and called the SEC’s claims a “witch hunt.”

He claims that a year-and-a-half ago representatives from the SEC were invited to USSEC’s Natchez, Mississippi facility to verify the bio fuel production process first hand, but left before the demonstration could be completed.

“They came out there and when they saw what we were doing, they left so they could say they never witnessed it,” Rivera said. “We have certifications from independent laboratories verifying that we are doing everything we stated in those press releases.”

Katherine Addleman, regional director of the SEC’s Atlanta office, said that the complaint was filed as a result of careful market analysis conducted by the agency over the past year, as well as input from third party sources.

“Every case is brought about following a thorough investigation conducted by the SEC to insure that we are not making allegations we believe are unfounded,” she said. “We are alleging that Mr. Rivera was involved in some pretty pervasive fraud in connection with USSEC.”

Sustainable Power Corporation is not currently named as a defendant in the litigation, she said.

According to the company’s website, Sustainable Power Corporation was established by Rivera in 2006 to, “develop and manage a portfolio of green energy plants utilizing the U.S. Sustainable Energy Corporation’s biocrude discovery, a renewable fuel source able to be produced from non-food feed stock.”

A court date has not yet been scheduled, though Rivera said that he intends to fight the allegations.

“We are not settling,” he said.

For more information on the complaint filed by the SEC against Rivera and USSEC, visit their website at http://www.sec.gov/litigation/litreleases/2008/lr20648.htm