NuScale backers under investigation

NuScale Power is putting a halt to most of its operations after its primary investor was hit with a civil action from the SEC.

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Corvallis energy startup NuScale Power is putting a halt to most of its operations as the Securities and Exchange Commission investigates its primary investor.

NuScale develops modular reactors for nuclear power plants, and has raised $35 million in venture capital.

In a news release Thursday, NuScale said the SEC has filed a civil action against its primary investor, the Michael Kenwood Group LLC, which could prevent the firm from meeting its funding obligations to NuScale.

The SEC complaint centers on the activities of Francisco Illarramendi, the majority owner of the Stamford, Conn.-based Michael Kenwood Group.

The SEC claims Illarramendi misappropriated some $53 million from a pair of hedge funds controlled by the Kenwood Group into bank accounts he personally controlled and then made unauthorized investments in long-term private equity deals.


Read more at Sustainable Business Oregon.