Facts

The Securities and Exchange Commission filed a complaint against Peter Jensen and Thomas Tekulve Jr. Jensen was the founder of Basin Water Inc., and served on the Board of Directors and as Chief Executive Officer until he resigned in 2008. Tekulve was the Chief Financial Officer.

PLAINTIFF'S CONTENTIONS:
The SEC alleged that Jensen committed misconduct in regard to six different transactions, where he improperly recognized revenue on those transactions. This led to the defendants misleading the investing public and the SEC. Furthermore, Jensen's alleged misconduct involved insider trading, where he impermissibly traded during black-out periods and traded while possessing non-public information regarding Basin's financial statements.

Result

The court found that SEC hadn't proven any of its causes of action, and ruled in favor of defendants.