“(we) worked together to fully vindicate both our clients after their lives were needlessly disrupted and their reputations were needlessly tarnished by years of litigation (by the SEC). As the Court aptly noted, the evidence showed our clients acted with ‘absolute integrity, prudence, and honesty.'”, David C. Scheper
“These agencies (like the CFPB, FDA, FDIC, NSA, and SEC) have assumed frightening new powers over the everyday lives of American citizens, giving government entities free rein over you and me in ways unprecedented in our country’s history.” Sen. Rand Paul
“How our government regularly abuses American citizens and ignores their rights would’ve outraged our Founding Fathers. They did not fight a revolution against a tyrannical government in faraway England simply to implement the same kind of government on their own soil. As Benjamin Franklin famously said and our Founders knew well, those who trade liberty for security get neither. Freedom is not defined by safety. Freedom is defined by the ability of citizens to live without government interference. Government cannot create a world without risks, nor would we really wish to live in such a fictional place. Only a totalitarian society would even claim absolute safety as a worthy ideal, because it would require total state control over its citizens’ lives. Liberty has meaning only if we still believe in it when terrible things happen and a false government security blanket beckons.” Ron Paul
Scheper Kim & Harris Hands SEC Trial Loss in Suit Against Basin Water CEO
Los Angeles, CA – December 11, 2013 – In a resounding setback for the SEC, a federal judge in Los Angeles issued a sweeping ruling today dismissing all of the claims made against Peter Jensen, the former CEO of Basin Water, Inc., and the company’s former CFO Thomas Tekulve. The ruling followed a two-week trial in which the SEC accused Jensen and Tekulve of intentionally misstating Basin Water’s revenues by engaging in so-called “sham” transactions. The SEC further accused Jensen of selling stock while knowing that the transactions were accounted for fraudulently.
United States District Judge Manuel Real soundly rejected each of the SEC’s contentions. In a 44-page order, the Court concluded that there was “[n]o documentary evidence or witness testimony presented at the trial [that] tended to show that any of the transactions were shams. In fact, everybody involved in the various transactions testified that they were actual, legitimate deals.” Further condemning the SEC’s case, the Court concluded that the SEC failed to present evidence that Jensen or Tekulve knowingly or intentionally misled anybody or acted recklessly.
“We are pleased by the Court’s judgment. We believed from the day the SEC filed its complaint that it had no evidence whatsoever of fraud or insider trading,” said Jensen’s lead trial counsel David C. Scheper. “The Court’s ruling confirms what we have contended all along – that while reasonable minds, with the benefit of hindsight, can disagree about certain accounting judgments made years ago, not one witness or document showed that Mr. Jensen or Mr. Tekulve tried to
In addition to David Scheper, Jensen was represented at trial by Scheper Kim & Harris partners William H. Forman and Jean M. Nelson. Scheper said his firm and Tekulve’s counsel, Carolyn Kubota and Seth Aronson of O’Melveny & Myers, “worked together to fully vindicate both our clients after their lives were needlessly disrupted and their reputations were needlessly tarnished by years of litigation. As the Court aptly noted, the evidence showed our clients acted with ‘absolute integrity, prudence, and honesty.’”
Media Contact: David C. Scheper, (213) 613-4670 and (626) 394-5424