The Securities and Exchange Commission, apparently changing course, told Sparks-based Sulphco Inc.
that it won't pursue allegations of securities violations.
As recently as late March, publicly held Sulphco told shareholders that it believed the SEC's regional staff in Salt Lake City would recommend that the commission take action against the company.
But last week, Sulphco said that it had been informed by the SEC regional office that the investigation had been dropped and no enforcement action would be undertaken.
The company provided no further details.
The SEC launched its investigation of Sulphco and its president, Rudolf Gunnerman, in March 2002.While securities investigators don't disclose much about their work, Sulphco told shareholders the agency was looking into possible violations of the rules surrounding registration of securities.
The company and Gunnerman denied those allegations.
At the time the investigation was launched three years ago, Sulphco's former auditing firm quit, saying it couldn't rely on the word of the company's executives.
Among the problems, said auditors Tanner & Co.
of Salt Lake City,were press releases that weren't reviewed to ensure accuracy and financial controls that were inadequate.
Sulphco said it dealt with those issues shortly after they were raised.
Sulphco has developed a patented process to use ultrasound technology to remove sulfur from crude oil.
