The SEC today announced that David P. Godwin, whom the SEC charged in September 2015 with fabricating nearly all of the revenue of ContinuityX Solutions, Inc. and enriching himself in the process, was sentenced in a parallel criminal case to 13 years in prison.

The criminal charges against Godwin stem, in part, from the same misconduct alleged in the SEC's complaint, which was filed in federal district court in Peoria, Illinois. The SEC's complaint alleges that Godwin, ContinuityX's former CEO, engineered a scheme to inflate the company's revenues with a co-defendant who served as ContinuityX's former CFO. The complaint also alleges that while ContinuityX reported revenues of $27.2 million from April 2011 to September 2012, 99 percent of the reported revenue came from fraudulent and fictitious sales. According to the complaint, Godwin used the allegedly fraudulent SEC filings to raise millions of dollars from investors in a private offering of ContinuityX securities and Godwin enriched himself with $1.3 million in compensation from ContinuityX.

The SEC's litigation against Godwin is ongoing. The SEC's complaint charges him with violating Section 17(a) of the Securities Act of 1933, Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934, and Exchange Act Rules 10b-5, 13a-14, 13b2-1, and 13b2-2. The complaint also alleges that Godwin aided and abetted ContinuityX's violations of Sections 13(a), and 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act, and Exchange Act Rules 12b-20, 13a-1, and 13a-13. The SEC's complaint seeks permanent injunctive relief; disgorgement, plus prejudgment interest thereon; civil penalties; an officer and director bar under Section 21(d)(2) of the Exchange Act; and an order requiring Godwin to reimburse ContinuityX pursuant to Section 304 of the Sarbanes-Oxley Act of 2002.

The SEC's investigation was conducted by Justin Delfino and Ann M. Tushaus of the Chicago Regional Office under the supervision of Assistant Regional Directors Steven L. Klawans and Scott J. Hlavacek. Daniel J. Hayes and Alyssa Qualls lead the SEC's litigation efforts. The SEC appreciates the assistance of the U.S. Attorney's Office for the Northern District of Illinois and the Federal Bureau of Investigation.