SEC Seeks Final Judgments Against Live Ventures CEO and Former CFO
SEC proposes $293,225 in penalties for Live Ventures CEO Jon Isaac and former CFO Virland Johnson over alleged financial and disclosure fraud in Nevada.
Summary
On August 20, 2026, the SEC filed consents and proposed final judgments against Live Ventures Inc. CEO John “Jon” Isaac and former CFO Virland A. Johnson in SEC v. Live Ventures Inc., et al., No. 2:21-civ-01433-JCM-MDC, filed August 2, 2021, in the U.S. District Court for the District of Nevada. Without admitting the allegations, Isaac agreed to a permanent injunction under Securities Act Sections 17(a)(2) and 17(a)(3) and a $175,000 civil penalty. Johnson agreed to a permanent injunction under Exchange Act Rule 13b2-2 and a $118,225 penalty. Both judgments require court approval.
The SEC’s September 21, 2022 amended complaint alleged Isaac engineered a transaction creating $915,500 of fraudulent “other income,” increasing Live Ventures’ fiscal 2016 pre-tax income by 20%. It alleged he combined inflated earnings with a fraudulently reduced share count to calculate earnings per share 40% above the audited figure, then included it in a 2016 company press release. Johnson allegedly made false statements to Live Ventures’ outside accountants in a February 2018 management representation letter.
Daniel Blau, Ruth Pinkel, Donald Searles and Robert Stillwell of the SEC’s Los Angeles Regional Office led the litigation under Stephen Kam’s supervision.
Positives
- $293,225 in combined proposed penalties would provide quantified resolution of the SEC’s claims against Isaac and Johnson if the court approves both judgments.
- Permanent injunctions would subject Isaac and Johnson to continuing federal securities law restrictions tied to the alleged conduct.
- August 20, 2026 consents move the litigation toward resolution nearly five years after the case was filed on August 2, 2021.
Risks & concerns
- $915,500 of allegedly fraudulent other income increased Live Ventures’ fiscal 2016 pre-tax income by 20%, according to the SEC.
- 40% inflation in reported earnings per share allegedly resulted from overstated earnings and a fraudulently reduced share count.
- A 2016 Live Ventures press release allegedly presented earnings per share above the figure in the company’s audited financial statements.
- Former CFO Virland A. Johnson allegedly made false statements to outside accountants in a February 2018 management representation letter.
- $175,000 and $118,225 penalties remain subject to court approval, and neither defendant admitted the SEC’s allegations.