Alto Ingredients Inc (ALTO)

[Slashnuts]

People naturally read the first paragraph first. If somebody read the first paragraph and then quit reading, they would be misinformed by the false information provided by the CEO of this company. They would assume revenue was $10,000,000 higher than it actually was. They would falsely believe revenue was $365,000,000. Words matter. When investors trust their hard earned dollars to a CEO, and that CEO lies in the very first paragraph, that's fraud. Overstating revenue of a publicly traded company is fraud. Have you heard of Madoff?

Here's the fraudulent quote, word for word. (first paragraph)

Neil Koehler, Pacific Ethanol’s president and CEO, stated, “The ethanol market is emerging from the bottom of the cycle in late 2018 when crush margins were at historic lows and our first quarter 2019 results reflect these improving market conditions. Our first quarter 2019 net sales were up 6% sequentially to $365 million.

Let's assume the reader continued to read the additional paragraphs you cited. They would read that revenues were much lower than reported in the first paragraph. Lower by $10,000,000. This is a major discrepancy that leaves the reader confused and unsure of the truth. Since two different revenue numbers were reported, it's not certain which one is correct.


If an investor were to purchase PEIX stock based on the belief that revenue was $10,000,000 higher and if the stock was to decline after that purchase, that investor can sue PEIX and Neil, the CEO, for providing falsified documents to the SEC. Overstating revenue is a fraudulent crime. What's worse? This news was likely sent out and read by thousands of people that may think revenue was $365,000,000.


When a large number of people are duped into buying a stock based on falsified documents, provided by the CEO and filed with the SEC, the likely result is what's called a class action lawsuit by investors that bought based on overstated revenues.