POSTED: 06:47 a.m. HST, Sep 25, 2013
LAST UPDATED: 02:16 p.m. HST, Sep 25, 2013
The U.S. Securities and Exchange Commission has suspended the stock of Left Behind Games Inc. and charged founder Troy Lyndon and a friend with falsely inflating company revenue.
The SEC alleges that Lyndon, the company CEO and CFO who lives in Honolulu, caused Left Behind Games to issue almost 2 billion shares of stock to friend Ronald Zaucha, who lives on Maui. Zaucha was to sell the stock and kick back a portion of the proceeds to Left Behind to prop up its revenues, according to the SEC complaint.
"Lyndon and Zaucha's scheme duped investors into believing Left Behind Games was becoming a successful enterprise when it was struggling to stay afloat," said Michele Wein Layne, Director of the SEC's Los Angeles Office. "Lyndon essentially gave Zaucha stock in exchange for phony revenue streams that created an inaccurate portrait of the company's financial health."
The SEC complaint seeks permanent injunctions, financial penalties and other measures against Lyndon and Zaucha.
Lyndon issued a statement to the Star-Advertiser today denying any willful wrongdoing and asserting that the government has conspired against him and his company.
A link to his full response is included.