The SEC hit three former officers of iSun, Inc. with a settled administrative order, and there’s no bribery anywhere in it. Jeffrey Peck, the former CEO and chairman, John Sullivan, the former CFO, and Frederick Myrick, a former EVP and director, resolved charges under the books-and-records and internal-controls provisions Congress wrote into Exchange Act Section 13(b)(2) as part of the Foreign Corrupt Practices Act.
The SEC’s order finds the three paid themselves roughly $127,300 in corporate funds, some of it iSun’s Paycheck Protection Program loan proceeds, by creating fictitious employment records that put their spouses on the payroll from May 2020 to June 2022. Peck and Sullivan made material misstatements to iSun’s investors about the PPP loan, the company’s financial condition, and their own compensation, made material misrepresentations to iSun’s external auditors, and executed false certifications in the company’s SEC filings. Myrick, the order says, “negligently participated” in the fraud, a lighter finding than the intentional conduct pinned on his co-defendants.
Peck agreed to pay $213,000 in disgorgement, interest, and civil penalties. Sullivan owes $149,000. Myrick owes $101,000. Combined, that’s $463,000 flowing out of three men whose company no longer exists to answer for anything on its own.
iSun filed Chapter 11, its assets liquidated. There’s no hearing left on the calendar. The order is final, and it’s the only recovery anyone’s getting out of this one.
— James Okafor