According to the SEC, "1. From December 2011 through January 2013, Maxwell, a California-based company that develops, manufactures, and markets energy storage and power delivery products, engaged in an accounting fraud scheme that improperly recognized over $19 million in revenue from future quarters in violation of U.S. Generally Accepted Accounting Principles ("GAAP"). Maxwell, an SEC recidivist, issued materially false and misleading statements about its revenue, revenue growth, and gross margins, and inflated its reported financial results to better meet analysts' expectations. Maxwell did not have sufficient internal accounting controls to identify and properly account for its revenue throughout the relevant period."

According to a press released issued on March 27, 2018: the SEC "charged a California-based energy storage and power delivery product manufacturer and one of its former sales executives in a fraudulent revenue recognition scheme designed to inflate the company's reported financial results."

On May 25, 2018, the SEC issued an Order Appointing Tax Administrator in this matter.

On July 27, 2018, the SEC issued an order appointing a fund administrator and setting the administrator bond amount in the proceedings against Maxwell Technologies, Inc. The SEC ordered that Epiq Systems, Inc. be appointed as the fund administrator, and that the administrator's bond be set at $2,949,991.

The Commission stated: "Notice is hereby given, pursuant to Rule 1103 of the United States Securities and Exchange Commission's ("Commission") Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1103, that the Division of Enforcement has submitted to the Commission a proposed plan of distribution (the "Plan") for the distribution of monies paid by Maxwell Technologies, Inc. ("Maxwell"), Van M. Andrews ("Andrews"), David J. Schramm ("Schramm"), and James W. DeWitt, Jr., CPA ("DeWitt") (collectively, the "Respondents") in settlement of the above-captioned administrative proceeding."

The Commission stated: "This proposed Plan of Distribution (the "Plan") has been developed pursuant to Rule 1101 of the Commission's Rules on Fair Fund and Disgorgement Plans ("Rules"), 17 C.F.R. § 201.1101."

On November 5, 2018, the SEC ordered the approval of the Distribution Plan. The SEC stated that: "The Distribution Plan proposes to distribute the Fair Fund, less taxes, fees, and expenses, to investors who purchased shares of Maxwell common stock at inflated prices during the period from February 26, 2012 through March 19, 2013, inclusive, and who suffered losses in the value of their investment after disclosures by the Respondents and the resignation of Maxwell's external auditors."

The SEC stated: "The Plan provides for a distribution of the funds collected in the above-referenced proceeding from Maxwell Technologies, Inc. ("Maxwell"), Van M. Andrews ("Andrews"), David J. Schramm ("Schramm"), and James W. DeWitt, Jr. ("DeWitt") (collectively, the "Respondents") to investors who purchased shares of Maxwell common stock on the NASDAQ at inflated prices during the period from February 26, 2012 through March 19, 2013, inclusive ("Recovery Period"), and who suffered losses in the value of their investment subsequent to disclosures by the Respondents."

The SEC stated: "[I]t is hereby ORDERED that the Commission staff shall direct the payment of $2,896,421.42 from the Fair Fund to the Fair Fund's Escrow Account at The Huntington National Bank, and that the Fund Administrator shall distribute such monies to harmed investors as provided for in the Plan."

The Commission stated: "[I]t is hereby ORDERED, pursuant to Rule 1105(d) of the Commission's Rules, 17 C.F.R. § 201.1105(d), that OFM pay the Fund Administrator's current fees and expenses of $10,078.90 from the Fair Fund."

The Commission ordered that: "Commission staff shall transfer $30,644.49 from the Fair Fund to the Fair Fund's escrow account at The Huntington National Bank, and the Fund Administrator shall distribute such monies, along with $47,194.60 held at The Huntington National Bank, for a total distribution of $78,635.72 by the Fund Administrator to Eligible Claimants in accordance with the Plan."

The Commission ordered that: "A. Any funds returned to the Maxwell Fair Fund in the future shall be transferred to the U.S. Treasury . . . ; B. The Fund Administrator is discharged; C. The Fund Administrator’s bond is canceled; and D. The Maxwell Fair Fund is terminated."