Ethiopia’s Electric Utility Sold Unregistered Bonds in U.S.

June 9th, 2016 Print Print Email Email

Washington D.C.–(Newsfile Corp. – June 8, 2016) – The Securities and Exchange Commission today announced that Ethiopia’s electric utility has agreed to pay nearly $6.5 million to settle charges that it violated U.S. securities laws by failing to register bonds it offered and sold to U.S residents of Ethiopian descent.

According to the SEC’s order instituting a settled administrative proceeding:

Ethiopian Electric Power (EEP) conducted the unregistered bond offering to help finance the construction of a hydroelectric dam on the Abay River in Ethiopia.

EEP held a series of public road shows in major cities across the U.S. and marketed the bonds on the website of the U.S. Embassy of Ethiopia as well as through radio and television advertising aimed at Ethiopians living in the U.S.
EEP raised approximately $5.8 million from more than 3,100 U.S. residents from 2011 to 2014 without ever registering the bond offering with the SEC.

“Foreign governments are welcome to raise money in the U.S. capital markets so long as they comply with the federal securities laws, including registration provisions designed to ensure that investors receive important information about prospective investments,” said
Stephen L. Cohen, Associate Director of the SEC’s Division of Enforcement. “This settlement ensures that investors get all of their money back plus interest.”

The SEC’s order finds that EEP violated Sections 5(a) and 5(c) of the Securities Act of 1933. EEP admitted the registration violations and agreed to pay $5,847,804 in disgorgement and $601,050.87 in prejudgment interest. The distribution of money back to investors is subject to the SEC’s review and approval. Investors seeking more information should contact the administrator of the distribution, Gilardi & Co. LLC, at 844-851-4591.

The SEC’s investigation was conducted by
Carolyn Kurr and
Daniel Rubenstein and supervised by
C. Joshua Felker. The SEC appreciates the assistance of the U.S. Department of State

  1. yihdega
    | #1

    A huge scandal!

  2. Anonymous
    | #2

    Pay for who for US government ?? but we need to build Blue Nile it is Ethiopian money.

  3. Mezmur
    | #3

    It is the TPLF scam and only the Tigrayans bought this illegal bond in the United States and Europe. That is why it called the Tigraway Bond.

  4. Tesfa
    | #4

    This article finding’s state the U.S SEC finds TPLF run EEC in violation of Section 5(A),and 5(C)of the securities act of 1933.It went on the TPLF has agreed to pay 601,050.87 million to settle to the victims of this fraud.If this was taking place since 2011 one wonders why it took this long to discover this business malpractice?

    Depending on what the violation code of section 5(a) and 5(c) states additional, ,criminal charges may follow against the rogue regime.Hopefully, the Attorny General might bring additional sue on this case and farther drag the criminal regime to some kind of infraction

    It is not because the foreign governments are not aware of TPLF’s criminality that they finance,arm and help it to remain in power.It is the other way around.The powers to be themselves are criminals who deliberately court criminal,and sociopaths third world dictators.

  5. አምባሳደር ግርማ ብሩ
    | #5

    ለዘንድሮ “የበጎ ሰው” ሽልማት በ10 ዘርፎች ህብረተሰቡ እጩዎች እንዲጠቁም ተጠየቀ፡፡ በመምህርነት፣ በሳይንስ፣ በድርሰት፣ በማህበራዊ ጥናት፣ መንግስታዊ የስራ ኃላፊነትን በብቃት መወጣት፣ በቅርስና ባህል፣ በስፖርት፣ በሚዲያና ጋዜጠኝነት፣ በበጎ አድራጎትና በንግድና ፈጠራ ዘርፎች ለሀገራቸው ጠቃሚ አስተዋፅኦ አበርክተዋል፤ የህዝቡን ህይወት የሚለውጥ የተሻለ ውጤት አምጥተዋል የሚላቸውን ሰዎች ህዝቡ እንዲጠቁም የሽልማቱ አዘጋጆች ጠይቀዋል፡፡
    እስከ ሰኔ 24 ድረስ በስልክ ቁጥር 0915 44 55 55 ወይም በኢሜል አሊያም በአካል አዲስ አበባ ለም ሆቴል አካባቢ ማቲያስ ህንፃ ቢሮ ቁጥር 408 ድረስ በመቅረብ ጥቆማ ማቅረብ እንደሚቻል አዘጋጆቹ ገልፀዋል፡፡ የሽልማት ስነ ስርአቱ ነሐሴ 28 ቀን 2008 ዓ.ም በደማቅ ስነ ስርዓት ይከናወናል ተብሏል፡፡

  6. Senait
    | #6

    Selling unregistered bonds is the tip of the iceberg for the international financial crimes TPLF is committing. Here in Switzerland almost every other week the TPLF officials wire millions of dollars to their private Swiss Bank Accounts with noone stopping them for the last few years especially after the death of the late Prime Minster Meles Zenawi with the big hike in the amount of international debt Ethiopia is incurring the amount of money being wired to swiss also increased tremendously. Not only TPLF officials but corrupt business people and OPDO government officials are starting to do the same laundering their money to Swiss bank accounts at huge amounts after the news broke out that Ethiopia and Eritrea are in war once again in 2016. We Ethiopians or Africans as a whole need to pressure the Swiss government stop hiding the African dictators money orelse there is no use for any African to bother to go to work since all the money is going to go end up at the few elites account in Swiss. We might as well farm enough to get our daily bread and forget about any other developmental plans.

  7. Baijenqu
    | #7

    It was a hugely unique execution of pickpocketing the thousands that the tplfwoyane mafias lured the unsuspected and the unaware individuals into buying a bogus bond for which the so-called investors would see no return on. When pickpocketed, you just would automatically become a victim. These individuals, the-would-be-victims were cordially addressed as investors and were invited for the seminar through a variety of advertisements including,on the radio, on TV, in magazine, on social media, through words-of-mouth,in flyers, door-to-door sale, through six degree of contacts.

    When the investors took sits, it was a little late to think twice; when the investors went through half of the seminar, it was late; when the investors, stood up for a stretching, it was off no use; when the investors shook hands with the seminar givers and dispersed, simply say, it was a by-by waving.

    After several days and nights went by, something came into light and the sound that carried the good news reached the investors ears at the speed of light. Justice spoke clear and loud enough. The mafias were caught blood red-handed scamming thousands in millions of dollars and were declared plotters, scammers, fraudulent, lawless and then were ordered to return the money with a huge interest on it to the owners in short period of time.

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