Former CEO of Plastics Manufacturer Sentenced in Fraud Case

Litigation Release No. 25050 / March 11, 2021

SEC v. Kevin R. Kuhnash and Jason P. Jimerson, No. 19-CV-00028 (S.D Ind. filed Feb. 12, 2019)

United States v. Kevin Kuhnash and Jason Jimerson, No. 18-CR-078 (S.D. Ind.)

Kevin Kuhnash, the former CEO of Indiana-based plastics manufacturer Lucent Polymers, Inc., was sentenced on March 2, 2021 to 36 months of imprisonment and one year of supervised release, and ordered to pay a $10,000 fine.

The SEC previously charged Kuhnash for his alleged role in a scheme to conceal that Lucent's core business model was a sham in connection with the company's acquisition by another manufacturer in 2013. According to the SEC's complaint, Lucent routinely lied to its customers and falsified its certifications of test data to show that its products complied with customer specifications, including on important aspects such as fire-retardant measures. Kuhnash allegedly hid Lucent's fraudulent practices, made misrepresentations to the company that acquired Lucent, and continued the fraud even after the sale of the business.

On July 28, 2020, Kuhnash pleaded guilty to two counts of securities fraud and one count of money laundering. The criminal fraud charges against Kuhnash were based on the same misconduct underlying the SEC's complaint.

The SEC's litigation, which was stayed pending resolution of the criminal action, continues. The SEC's complaint charges Kuhnash and Lucent's former CEO, Jason Jimerson, with violating the antifraud provisions of the federal securities laws and seeks permanent injunctions, disgorgement plus prejudgment interest, civil monetary penalties, and officer-and-director bars.