The SEC is poised to take enforcement action against Faraday Future's executives following a three-year fraud investigation focused on misleading statements made during the company's merger with a SPAC in 2021. The SEC's Wells Notices indicate that officials may pursue injunctions, civil penalties, or other remedies. Faraday Future plans to challenge the SEC's findings, asserting that the enforcement action is not justified. Recent interviews with former employees by the SEC have also contributed to the ongoing scrutiny of the company’s public operations.
The SEC has sent Wells Notices to Faraday Future’s founder and president indicating impending enforcement actions due to a three-year-long fraud investigation related to their 2021 SPAC merger.
The investigation is centered on alleged false statements made during Faraday Future’s merger, potentially leading to injunctions, penalties, or other regulatory actions against the company and its executives.
Faraday Future stated its intention to engage with the SEC to contest the proposed enforcement action and maintain that the action is unwarranted.
Former employees of Faraday Future have been interviewed by the SEC in recent weeks as part of the ongoing investigation into the company's operations after going public.
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