EV startup Canoo Inc has been fined $1.5 million by the US Securities and Exchange Commission (SEC), Reuters reports.

The fine relates to what regulators allege were “reporting failures” related to Canoo’s unreasonable revenue projections, which chalked up to hundreds of millions of dollars.  

Canoo’s former CEO Ulrich Kranz and Paul Balciunas, its former chief financial officer misled investors, the SEC said. The investigation started in April 2021

The lawsuit alleges both men told investors that the firm had a projected revenue of $120 million in 2021 and $250 million in 2022. The SEC said these numbers were unrealistic.

Canoo did not admit to wrongdoing in the settlement, but Mr Kranz and Mr Balciunas settled with the SEC.

Mr Kranz cannot serve as an officer or director of public companies for three years and will pay a $125,000 fine.

Mr Balciunas agreed to a two-year bar, to pay a $50,000 fine and return $7,500 in profits.