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Apple's sapphire glass maker is accused of fraud – and its former CEO too

Past waters are commonly forgotten, right? Not for Apple. The Cupertino giant is in the process of solving a major problem with one of its manufacturers that, say, has faltered (and ugly) with the company. We are talking about GT Advanced Technologies, with which Ma had plans to invest $ 578 million in the creation of new factories for the production of sapphire glasses.

As we reported at the beginning of last year, it turned out that Apple invested some of the money and didn't even see the color of that material it would match. iGadgets. GT Advanced was, of course, sued for this and is now officially charged by Securities and Exchange Commission (SEC) for fraud in the manufacture of sapphire glasses for Apple.

In addition to GT Advanced, former GM CEO Thomas Gutierrez has also been accused of misleading investors about the company's actual production capacity. Not only that, the SEC also claimed that the manufacturer was slow to recognize the debt of more than $ 300 million with Ma, the result of repeated failures to meet the company's demand.

According to the SEC report, Apple has anticipated part of its $ 578 million GT Advanced investment in sapphire glasses that meet certain technical standards. Investors followed the deal between the companies, and by the end of 2014, when Apple failed to meet the required standards, Apple withheld $ 139 million from the investment and demanded $ 306 million in advance.

In order to avoid recognition of the debt (which would have an immediate impact on the operation of its operations), GT Advanced accused Apple of breaching part of the deal in an attempt to break free from obligations with Ma. However, while disclosing the results of the In the second quarter of fiscal 2014, GT Advanced CEO then (falsely) claimed that the company would achieve its performance targets if it received Ma's final payment by October of that year.

Shortly thereafter, however, the manufacturer filed for bankruptcy, which resulted in "significant damage to investors," according to the SEC. GT Advanced left the judicial recovery process in 2016 and since then its activities have been funded by a group of anonymous sponsors.

GT and its CEO painted an upbeat picture of the company's performance and ability to obtain financing, which was paramount to GT's survival, while they knew of information that would have catastrophic consequences for the company. We will continue to hold CEOs accountable when they violate their most fundamental duties of making full and truthful disclosures to investors.

Neither GT Advanced nor the former CEO of the manufacturer admitted or denied SEC's allegations; however, both dropped the charges against Apple and Gutierrez agreed to pay more than $ 140,000 as a "monetary relief" for the applicable fines.

via MacRumors