U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23968 / October 13, 2017
Securities and Exchange Commission v. Reed J. Killion, Jeffrey W. Tomz, and Uni-Pixel, Inc., No. 4:16-cv-00621 (S.D. Tex. filed Mar. 9, 2016)
Former Executives of Tech Company Agree to Pay Penalties to Settle SEC Action
The Securities and Exchange Commission announced today that two former executives of a developer of technologies for touchscreen devices have agreed to pay penalties to settle charges that they misled investors about the production status and license agreements relating to its key product. In 2016, the developer, Uni-Pixel, Inc. settled SEC charges, and Uni-Pixel's former board chairman entered into a deferred prosecution agreement with the agency.
Without admitting or denying the SEC's charges, Reed J. Killion, Uni-Pixel's former Chief Executive Officer, and Jeffrey W. Tomz, Uni-Pixel's former Chief Financial Officer, each consented to entry of a final judgment that permanently enjoins them from violating Section 17(a)(2) of the Securities Act of 1933, and aiding and abetting violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder, permanently enjoins Killion from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(b) thereunder, orders Killion and Tomz to pay civil penalties of $100,000 and $50,000, respectively, and bars Killion, for four years, from serving as an officer or director. The settlement is subject to court approval and will resolve this litigation in its entirety. Tomz also agreed to the entry of an SEC order suspending him from appearing or practicing before the SEC as an accountant, which includes not participating in the financial reporting or audits of public companies. The SEC's order will permit Tomz to apply for reinstatement after four years.
The SEC's litigation was conducted by Keefe Bernstein, Matthew Gulde, and David Whipple and supervised by Jessica Magee in the SEC's Fort Worth Regional Office.