The Securities and Exchange Commission charged a solar panel manufacturer headquartered in South San Francisco and three of its former executives with defrauding investors by concealing the transfer of nearly half of the ownership stake in its Chinese subsidiary to three individuals in China who manage the subsidiary. The SEC alleges that Worldwide Energy and Manufacturing USA Inc. raised nearly $9 million from U.S. investors in early 2010 in order to expand its solar subsidiary based in Rugao City, China. The Chinese subsidiary represented the bulk of WEMU's operations and generated 77% of the company's revenue the previous year. In a power point presentation at road shows and in other communications with investors, the company's founder and chairman of the board Jimmy Wang and the company's president Jeffrey Watson touted the solar subsidiary's success as the primary growth area for the company and represented that the company fully owned its Chinese subsidiary.

Worldwide Energy & Manufacturing USA, Inc. announced that Michael O'Connor resigned as a director of the company effective June 28, 2012 and that the board has appointed Gary Koos to fill the vacancy created by Mr. O'Connor's resignation. The company also announced that as a result of the departure of Jeff Watson, Mr. Koos has been appointed to the position of Chief Executive Officer and President of the Company and will continue to serve as Chief Financial Officer of the Company.

The Securities and Exchange Commission (SEC or the commission) announced the revocation of the registration of the securities of Worldwide Energy & Manufacturing USA, Inc. registered with the Commission pursuant to Section 12 of the Securities Exchange Act of 1934, on May 16, 2012, pursuant to Section 12(j) of the Exchange Act. In its Order revoking the registration of securities of company registered with the Commission pursuant to Section 12 of the Exchange Act, the Commission found that company has failed to comply with Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 there under by failing to file an annual report on Form 10-K since April 2010, and failing to file quarterly reports on Form 10-Q for any fiscal period subsequent to its fiscal quarter ending September 30, 2010. The company has also announced it will need to amend its financial statements going back two years, from its 2009 Form 10-K forward.