Attorney: Man denies wrongdoing in SEC case
The attorney for Ronald Zaucha, who has Maui ties and is charged in a Securities Exchange Commission case involving the inflation of revenue in alleged “sham circular transactions” for a religious-themed video-game manufacturing company, said Thursday that his client “denies any wrongdoing in this case.”
“Mr. Zaucha categorically denies any wrongdoing in this case and looks very forward to vindicating his innocence in court,” said Robert Ouriel, managing partner of Ouriel & Kat, in an email to The Maui News on Thursday.
The SEC alleges that Troy Lyndon of Oahu, who serves as the chief executive officer and chief financial officer of Left Behind Games Inc., had the company issue almost 2 billion shares of stock to his friend Zaucha as compensation for consulting services to the California-based company.
The true purpose of the arrangement was to enable Zaucha to sell millions of unregistered shares of Left Behind Games stock and then kick back a portion of stock proceeds to the company to prop up its revenue when the company was recording millions in losses, the SEC said in its complaint filed in U.S. District Court in Hawaii on Tuesday.
The complaint seeks permanent injunctions, financial penalties and penny stock bars against Lyndon and Zaucha, and an officer-and-director bar against Lyndon.
Zaucha apparently owns a unit in Menehune Shores in Kihei, according to county property tax records and the website homeaway.com that lists the unit as a vacation rental and Zaucha as its owner. The SEC complaint calls Zaucha a Maui resident.