The Securities and Exchange Commission has filed suit against the founder of Canadian firm, World Transport Authority Inc., alleging that is has misled investors.

On Feb. 21, the SEC filed suit in the U.S. District Court for the Southern District of New York against Douglas Norman, the self-described founder and de facto chief executive of WTA.

According to the complaint, WTA, a Canadian corporation headquartered in the San Diego area, claims to have designed a revolutionary car, called the WorldStar, and a unique system for manufacturing the car, called a “micro-factory,” which can be set up in 90 days and thereafter produce a single car per day.

The complaint alleges that beginning in 2000, and continuing into 2001, Norman knew of and approved materially false or misleading press releases issued by WTA, , failed to file required reports concerning his beneficial ownership and holdings of WTA stock, and permitted WTA to file materially false or misleading quarterly and annual reports with the commission.

The complaint also alleges that during the period when the false or misleading statements were being made, Norman sold at inflated prices at least 5.5 million shares of WTA stock without registration, realizing at least US$1.8 million from the sales.

The U.S. Attorney’s Office for the Southern District of New York, on the same day, announced that an indictment had been handed up against Norman charging one count of securities fraud.