SEC charges Hudson firm and former CEO with fraud, concluding five-year investigation

HUDSON — The Securities and Exchange Commission charged Hudson-based tech company GT Advanced Technologies Friday for misleading investors and falsely classifying over $300 million in debt to Apple, in relation to its ill-fated 2013 deal to supply sapphire glass to Apple for its iPhones.

At the time of the deal in question, GT Advanced Technologies (GTAT) was based in Merrimack. Former CEO Thomas Gutierrez entered into an agreement with Apple in which Apple would advance $578 million in four installments in exchange for sapphire glass that met certain standards, according to the SEC.

“The agreement was closely watched by the market and highly material to GT’s revenue, liabilities, and stock value,” a Friday news release states.

But by April 2014, GTAT failed to meet its obligations, the SEC said. As a result, Apple withheld $139 million and accelerated repayment of $306 million it already advanced to GTAT.

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