SEC Imposes $5 Million Fine On Brooge Energy (BROG) For Allegedly Inflating Revenue – Hagens Berman

Brooge Energy (BROG) Investors with Substantial Losses Encouraged to Contact HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS: Firm Investigating Possible Securities Law Violations

SAN FRANCISCO, Jan. 19, 2024 (GLOBE NEWSWIRE) — Hagens Berman urges Brooge Energy Limited (NASDAQ: BROG) investors who suffered substantial losses to submit your losses now.

Brooge Energy Limited (BROG) Investigation:

On Dec. 22, 2023, the SEC fined Brooge Energy $5 million and issued a cease-and-desist order against Brooge, its former CEO (Nicolaas Lammert Paardenkooper), and its former Chief Strategy Officer and former Interim CEO (Lina Saheb). The SEC found, in part that: (1) before and after going public through a SPAC merger, Brooge misstated between 30 and 80 percent of its revenues from 2018 through early 2021; (2) Brooge created false invoices to support inflating revenues from its oil facilities in Fujairah, UAE by over $70 million; and (3) Paardenkooper and Saheb either knew or were reckless in not knowing of the fraud.

This news sent the price of Brooge shares crashing over 15% lower on Dec. 22, 2023, to close at $3.34 per share.

Previously, on Dec. 20, 2019, Brooge went public through a SPAC merger with Twelve Seas. The parties convinced Twelve Seas’ shareholders to approve the merger by emphasizing pre-merger Brooge’s 2018 and 2019 reported revenues.

The SEC found that pre-merger Brooge’s 2018 revenues were overstated 400% using a false invoice scheme. The SEC further found that pre-merger Brooge’s revenues for the six months ended June 30, 2019 were also massively overstated.

Paardenkooper abruptly resigned on Dec. 8, 2022, just a few months after the SEC commenced its investigation. Saheb followed suit several months later.

“We believe investors may have suffered substantial damages as a result of Defendants’ alleged fraud, but they will not be adequately compensated by the SEC’s settlement,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.

If you invested in Brooge Energy and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman »

If you’d like more information and answers to frequently asked questions about the Brooge Energy investigation, read more »

Whistleblowers: Persons with non-public information regarding Brooge Energy should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email BROG@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

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Contact:
Reed Kathrein, 844-916-0895