T1 Energy Terminates Chief Accounting Officer Two Weeks After Short Seller Alleges Fraud
February 6, 2026 · by Fintool Agent
T1 Energy Inc.+13.76% (NYSE: TE) terminated its Chief Accounting Officer Denise Cruz effective immediately on February 5, 2026—just two weeks after short seller Culper Research published a scathing report alleging accounting irregularities at the embattled solar module manufacturer.
The abrupt departure marks the second senior executive termination in less than a year at the company formerly known as FREYR Battery, and comes as multiple law firms investigate T1 for potential securities fraud.
The Termination
Cruz, who served as SVP, Chief Accounting Officer and Corporate Controller, was offered a termination package and "will be pursuing her personal interests," according to T1's 8-K filing. The company thanked her for her service but provided no explanation for the sudden departure.
The timing is notable: Cruz was appointed in February 2025—meaning she lasted less than one year in the role.
T1 immediately named Tom Mahrer, 42, as her replacement. Mahrer joined T1 only four months ago as Director of SEC Reporting after an 11-year stint at Valero Energy Corporation+4.40%, where he handled technical accounting, SEC reporting, and investor relations.
Ask Fintool AI AgentThe Short Seller's Allegations
On January 21, 2026, Culper Research published a devastating short report titled "T1 Energy: The 'American Made' Charade," describing the company as a "failed EV battery SPAC that has rebranded itself an all American solar module manufacturer while remaining operationally and economically subject to China-based Trina Solar, a foreign entity of concern."
The allegations struck at the heart of T1's business model:
Financial Reporting Irregularities: Culper flagged discrepancies between T1's reported sales to Trina Solar and Trina's reported purchases from T1. The short seller estimated T1 has accrued $59.7 million owed to Trina—equivalent to 83% of T1's consolidated gross profit for the nine months ended September 2025.
FEOC Compliance Risk: Culper alleged T1 is ineligible for lucrative 45X Advanced Manufacturing Production Credits and that forthcoming Treasury guidance would be a "death blow" to the company's economics.
Undisclosed Lawsuit: Culper claimed T1 failed to disclose that RWE Clean Energy terminated its offtake agreement in December 2025 and filed a lawsuit alleging T1 "misrepresented its customer base, failed to provide module audits, failed to deliver compliant modules."
Active Government Probes: Culper alleged T1 is "already subject to scrutiny by the U.S. Securities and Exchange Commission, Department of Justice, and U.S. Customs."
T1 shares fell 12% on the day of the report's publication.
Multiple Law Firms Circle
Following the Culper report, at least two prominent securities litigation firms announced investigations:
Pomerantz LLP is investigating "whether T1 and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices."
Rosen Law Firm is also encouraging investors to inquire about a potential class action investigation.
The simultaneous CAO termination—the executive directly responsible for financial reporting and accounting controls—adds fuel to these investigations.
Ask Fintool AI AgentA Pattern of Executive Turnover
Cruz's departure is not isolated. In March 2025, T1 terminated COO David Gustafson, the second C-suite departure within a year of the company's transformation from FREYR Battery to T1 Energy.
The company acquired Trina Solar's U.S. manufacturing operations in December 2024 and rebranded as T1 Energy in February 2025—marketing itself as an "all-American" solar module manufacturer. But Culper's report alleged this narrative masks continued operational and economic control by the Chinese parent company.
New CAO's Credentials
Tom Mahrer brings substantial experience to a company under intense scrutiny:
| Credential | Detail |
|---|---|
| Experience | 15+ years in energy and manufacturing finance |
| Valero Tenure | 2014-2025 (technical accounting, SEC reporting, investor relations) |
| Prior Experience | KPMG LLP (accounting advisory), Deloitte & Touche LLP (assurance) |
| Education | M.S. Accounting, Texas State University; CPA |
| T1 Tenure | Joined October 2025 as Director of SEC Reporting |
The selection of a Valero veteran with deep SEC reporting experience may signal T1's intent to address investor concerns about financial reporting—or simply reflects the need for continuity given Mahrer was already handling SEC filings.
Market Reaction
Despite the CAO termination news, TE shares closed up 13.8% at $8.27 on February 6, 2026, on volume of 20.1 million shares—well above average. The stock has swung wildly over the past year, ranging from a low of $0.92 to a high of $9.78.
| Metric | Value |
|---|---|
| Close | $8.27 |
| Change | +$1.00 (+13.8%) |
| Volume | 20.1M |
| 52-Week Low | $0.92 |
| 52-Week High | $9.78 |
| Market Cap | $1.27B |
The paradoxical rally suggests investors may be interpreting the CAO change as a positive step toward addressing concerns—or the stock is experiencing short-covering following the Culper-driven selloff.
Ask Fintool AI AgentWhat to Watch
Upcoming 10-K Filing: T1's annual report for fiscal 2025 will be closely scrutinized for any changes to accounting disclosures, related-party transactions with Trina Solar, or material weakness disclosures.
Treasury FEOC Guidance: Any new rules clarifying FEOC compliance requirements could materially impact T1's eligibility for 45X credits—which Culper argued is essential to the business model.
RWE Lawsuit Progress: The outcome of RWE Clean Energy's lawsuit could validate or refute Culper's allegations about module quality and customer misrepresentation.
Securities Litigation: Watch for formal class action filings from Pomerantz, Rosen, or other firms investigating T1.
Related
T1 Energy Inc.+13.76% · Valero Energy Corporation+4.40% · FTC Solar, Inc.+1.50%