In the Complaint the SEC alleged that: "For years, Longwei held itself out as a petroleum storage and sales company whose main competitive advantage was its sizeable storage capacity. But Longwei routinely overstated its storage capacity, and even after the overstatement was brought to the attention of the company, including its CFO, Defendant Michael Toups, nothing was done to correct the misstatement. Instead, the company continued to falsely tout its storage capacity in public filings and press releases drafted by Toups, intentionally ignoring contrary evidence from its own records, auditors, and consultants. In addition to fraudulent statements regarding its storage capacity, Longwei and Toups conducted a fraudulent scheme to induce the exercise of warrants to purchase Longwei's stock when it was desperate for cash."

The Court stated: "The Securities and Exchange Commission having filed a Complaint and Defendant Longwei Petroleum Investment Holding Limited having entered a general appearance; consented to the Court's jurisdiction over Defendant and the subject matter of this action; consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment."