NorthWest Biotherapeutics Inc (NWBO)

[exwannabe]

The SEC version:

https://www.sec.gov/enforce/34-87281-s

October 10, 2019 - The Securities and Exchange Commission today filed a settled action against Northwest Biotherapeutics (NWBO) for failing to maintain internal control over financial reporting (ICFR) for twelve consecutive annual reporting periods. In each of its annual Form 10-K filings with the Commission over more than a decade, NWBO disclosed material weaknesses, many of which recurred year after year, with insufficient effort at remediation.

According to the SEC's order, NWBO publicly disclosed material weaknesses in each of its Forms 10-K over a period of twelve years, from 2007 through 2018. NWBO's material weaknesses often repeated year after year, relating to numerous areas of importance, including the review, supervision and monitoring of accounting operations throughout the organization. NWBO disclosed in nine of the last twelve fiscal years that it lacked controls in place, including those surrounding related party transactions, to ensure that all material transactions and developments impacting its financial statements were reflected and properly recorded. In its most recent Form 10-K filed for FY2018, NWBO continued to disclose material weaknesses, including two newly-identified weaknesses, one of which is the lack of formalized and implemented policy and procedure documentation to evidence a system of ICFR. In addition, NWBO has failed to file timely its annual report on Form 10-K for sixteen consecutive years.

The SEC's order finds that NWBO violated the internal controls provisions of Section 13(b)(2)(B) of the Securities and Exchange Act of 1934 and Rule 13a-15(a) thereunder. Without admitting or denying the SEC's findings, NWBO consented to a cease-and-desist order and agreed to pay a $250,000 civil penalty and retain an independent consultant to review and evaluate NWBO's internal control over financial reporting