Former COO of Plastics Manufacturer Sentenced in Fraud Case
Litigation Release No. 25062 / March 30, 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.)
Jason Jimerson, the former COO of Indiana-based plastics manufacturer Lucent Polymers, Inc., was sentenced on March 25, 2021 to 24 months of imprisonment and two years of supervised release, and ordered to pay a $10,000 fine.
The SEC previously charged Jimerson 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 in important areas such as fire-retardant measures. Jimerson allegedly hid Lucent's fraudulent practices, made misrepresentations to the company that acquired Lucent, and continued the fraud, including by lying to the Commission's staff, even after the sale of that company.
On June 18, 2020, Jimerson pleaded guilty to two counts of securities fraud, one count of money laundering, and one count of making false statements to federal agents. The criminal fraud charges against Jimerson 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 Jimerson and Lucent's former CEO, Kevin Kuhnash, with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks permanent injunctions, disgorgement plus prejudgment interest, civil penalties, and officer-and-director bars.