PHOENIX – The Arizona Corporation Commission (ACC) has ordered Tyler Brent Lyman, founder of a Mesa-based solar startup, to pay $2.43 million in restitution and a $50,000 administrative penalty after determining that he misappropriated nearly $1 million in investor funds for personal expenses.
Lyman was also ordered to permanently cease and desist from violating the Arizona Securities Act.
According to the Commission, Lyman raised at least $2.43 million from 27 investors between January 2020 and January 2023 while representing himself as the company’s founder, CEO, president, and director.
Investors provided funding through convertible notes, Simple Agreements for Future Equity (SAFE) contracts, and loan agreements. Lyman assured investors their money would be used exclusively for company operations.
Instead, the Commission found that Lyman diverted at least $984,696 to cover personal expenses, including luxury vacations, fine dining, designer clothing, and family medical bills.
To conceal the misuse of funds, Lyman opened a secret bank account in the company’s name without disclosing its existence to other corporate officers.
The Commission also found that Lyman failed to inform investors that he was a defendant in at least three civil lawsuits that resulted in default judgments totaling more than $343,000.
Additionally, Lyman was not registered with the Arizona Corporation Commission as a securities salesman when he solicited and sold the investments.
The Commission’s order requires Lyman to repay investors $2,433,000, pay a $50,000 administrative penalty, and permanently refrain from further violations of Arizona securities law.
Be the first to comment