Publication date: 05-April-2004
Source:Associated Press

The agency accused William Freise on Wednesday of stealing $7,200 from the Salt Lake City company and hiding his failure to pay $40,000 for stock he had received by exercising warrants. He then apparently altered monthly company bank statements between June 2002 and April 2003 to conceal these activities, the SEC said.

Freise resigned from Powerball, which works with technology relating to the production of hydrogen, in May after the company found the accounting irregularities.

Powerball's outside auditor, David Thomson, and his firm also agreed to an order barring them from working as accountants for two years for their failure to follow generally accepted auditing standards in their Dec. 31, 2002, Powerball audit, the SEC added. Thomson allegedly failed to obtain confirmations of cash balances from Powerball's bank.

Thomson agreed Thursday to the order without admitting or denying any wrongdoing, the SEC said.

The agency is seeking an order requiring Freise to give up any ill-gotten gains plus interest and other financial penalties, and an order barring him from serving as an officer or director of a public company.

According to Greg Faragasso, a deputy assistant director in the SEC's Enforcement Division, Freise is
representing himself in the case.

Freise didn't immediately return messages seeking comment.

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