SEC Files Settled Action Alleging Battle Motors and its CEO Misled Investors

By the Constantine Cannon Whistleblower Team

The SEC recently filed a settled action alleging that vehicle manufacturer Battle Motors, Inc. and its CEO and Chairman, Michael W. Patterson, misled investors in connection with a convertible debt offering by overstating Battle’s performance metrics.  This case serves as another example that SEC enforcement actions are not limited to massive publicly traded companies that make misleading public statements to potential investors.  Here, the SEC went after allegedly misleading statements made in connection with a convertible debt offering that raised money from just two investors and neither Battle nor its common stock was registered with the SEC.[1]

What Were the Alleged Misrepresentations?

The SEC’s complaint centers on two alleged misrepresentations in a slide deck created with the assistance of an investment banking consultant and provided to potential investors.[2]  First, the slide deck allegedly “stated that Battle had received 115 electric vehicle purchase orders totaling $30 million in only three months”; however, the SEC alleged that Battle had not received the necessary vouchers to finalize purchase orders for most of those vehicles and had only received 8 EV purchase orders at the time the slide deck was created.[3]

Second, the slide deck allegedly “stated that Battle had a dealer network comprised of 180 dealers with 320 locations which ‘[c]over[ed] 100% of the North American Market’”; however, the SEC alleged that around the time of the statement Battle’s dealer network had just 47 dealers with 156 locations.[4]

In addition to these alleged misrepresentations in the slide deck, the SEC also alleged that Patterson responded to a potential investor’s question about whether revenues were based on firm orders or letters of intent by stating that all the entries were “firmly PO’d [purchase-ordered] except for 85 BEV units that just got voucher approval . . . and are being paired with [purchase orders] at the moment”; however, according to the complaint, none of the vehicles had voucher approval and Battle only had purchase orders for 8 of the vehicles.[5]

What Does the Proposed Final Judgment Include?

According to the SEC, without admitting to the allegations and subject to court approval, Battle and Patterson consented to entry of a final judgment ordering Battle to pay nearly $600,000; ordering Patterson to pay nearly $120,000; imposing a two-year officer and director bar on Patterson; and permanently enjoining them from violating Sections 17(a)(2) and (3) of the Securities Act of 1933.[6]

How Can Whistleblowers Report Fraud to the SEC?

The SEC Whistleblower Program enables anyone with information about potential securities law violations to report it to the SEC and potentially receive an award.  Under the program, eligible whistleblowers can receive up to 30% of the monetary sanctions the government collects in enforcement actions based on information provided by the whistleblower.

According to Constantine Cannon partner Dan Vitelli: “This SEC enforcement action is an important reminder that when companies—large or small—and their employees communicate with potential investors through slide decks or otherwise, they must be sure that their statements are true and accurate and that they are not misleading.  This is especially important when it comes to statements about objective performance metrics.  Overstating a company’s performance to potential investors can land companies and individuals in hot water with the SEC and it can lead to serious enforcement actions. Whistleblowers play a critical role in bringing information about securities fraud to the SEC.”

Our Firm Has Significant Experience Representing SEC Whistleblowers

Constantine Cannon has extensive experience representing SEC whistleblowers. If you think you may have a case or would like to learn more about the SEC Whistleblower Program, please contact us, and we will connect you with our Constantine Cannon whistleblower team for a free and confidential consultation.

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[1] See https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26585 (press release); see also https://www.sec.gov/files/litigation/complaints/2026/comp26585.pdf (complaint).

[2] https://www.sec.gov/files/litigation/complaints/2026/comp26585.pdf (complaint) ¶ 14.

[3] Id. ¶ 16.

[4] Id. ¶ 17.

[5] Id. ¶¶ 18-19.

[6] See https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26585 (press release).

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