SEC Charges Nuclear Battery Startup Company and Its CEO with Fraudulently Raising Over $1.2 Million from Investors

The Securities and Exchange Commission (SEC) has taken action against NDB, Inc. (“NDB”), a private startup based in San Francisco, California, and its CEO, Nima Golsharifi, accusing them of defrauding investors through the dissemination of false and misleading information in a company press release.

According to the SEC’s complaint, NDB and Golsharifi raised over $1.2 million from investors by issuing a press release on August 25, 2020. In the press release, NDB claimed it had successfully tested its nuclear-based battery technology at two reputable laboratories in the United States and the United Kingdom, also stating that it had secured its first two beta customers. The SEC alleges that these claims were untrue because NDB had not conducted any tests of its battery technology at these laboratories, nor had it secured any beta customers at the time of the press release. As a result of these false statements, NDB garnered substantial investor interest, raising approximately $660,000 in the month following the press release and an additional $580,000 from investors in the subsequent 11 months.

The SEC has filed its complaint in the U.S. District Court for the Northern District of California. NDB and Golsharifi are charged with violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The SEC seeks various forms of relief, including injunctions, disgorgement of ill-gotten gains with prejudgment interest, civil penalties, and an officer and director bar against Golsharifi.