The Securities and Exchange Commission (SEC) has sent letters to Faraday Future founder Jia Yueting and president Jerry Wang, alerting them that they may soon face enforcement actions from the agency as the result of a three-year fraud investigation. The letters, known as 'Wells Notices,' state that the commission's staff has made an internal determination to recommend an enforcement action against the electric vehicle company, the two executives, and two former employees who weren't named, according to a regulatory filing published Wednesday. Faraday Future wrote in the filing that the SEC is focused on 'purported false and misleading statements' related to the company's 2021 merger with a special purpose acquisition company (SPAC). The SEC may seek 'an injunction or cease-and-desist order against future violations of provisions of the federal securities laws, the imposition of civil monetary penalties, disgorgement or other equitable relief within the Commission's authority, or...
learn more
