BAT Cites ‘Impostors’ for Recent Woes

BAT International Inc., which has been subpoenaed by the Securities and Exchange Commission, attacked Internet “impostors” for spreading misinformation and said it has complied with federal regulations. The SEC subpoenaed financial documents and patent information from the Burbank automotive technology company last week following high-volume trading of the company’s stock. “Any time there’s that much trading, it triggers a ‘hmm’ from the SEC,” said Bill Wason, president of a BAT subsidiary that develops car engines. He said the company was working to comply with the SEC subpoena by today. SEC officials would neither confirm nor deny the existence of an investigation. Earlier this month, more than 24 million BAT shares were traded in one day, fetching prices as high as $3.25. Share prices then began plunging. BAT, which had become a topic of discussion among investors over the World Wide Web, blamed the unusual trading activity in part on comments made by unnamed people who allegedly masqueraded as company President Joseph LaStella in Internet “chat rooms.” Tuesday, BAT shares fell 2 cents to close at 54 cents on the Nasdaq bulletin board.