SEC Charges Hyzon Motors and Former Executives With Fraudulent Activity

The Securities and Exchange Commission (SEC) today accused Hyzon Motors Inc., an upstate New York-based company manufacturing hydrogen fuel cell electric vehicles (FCEVs), of fraudulently misleading investors concerning the status of its business. The SEC also charged Hyzon’s former CEO Craig Knight, and Max C.B. Holthausen, former managing director of Hyzon’s European subsidiary, for their part in the scheme before and after a July 2021 merger with a publicly traded special purpose acquisition company, or SPAC. Specifically, the SEC claims that Hyzon fabricated potential customers and suppliers with which it had supposedly entered into transactions and stated it had delivered its first FCEV in July 2021 when in fact the vehicle was not equipped to run on hydrogen power. Hyzon also allegedly falsely reported they had sold 87 FCEVs in 2021 even though no vehicles were sold. Hyzon Motors, Knight, and Holthausen have each agreed to remain permanently enjoined from such activities and to pay civil penalties of $25 million, $100,000, and $200,000 respectively. Knight and Holthausen will also be prohibited from serving as officers or directors of a publicly traded company for 5 and 10 years respectively. In addition, Hyzon’s former CFO is also returning bonuses he received during the twelve month period following the misstated financial statements. The settlements are subject to court approval.