A whisper of scandal, a report that stirred the winds of doubt, emerged this week, casting shadows over Jon Isaac, who swiftly dismissed the allegations with the poise of a man unaccustomed to the spotlight. 🧠
BeInCrypto, that intrepid seeker of truth, uncovered that Isaac and Alt5 Sigma, once JanOne Incorporated, are entangled in another SEC investigation. In 2021, the regulator, ever the judge of financial morality, charged Isaac with deceit. 💸
An Investigation into Alt5 Sigma
Earlier this week, news broke that Alt5 Sigma, a company involved in a $1.5 billion deal with Donald Trump’s World Liberty Financial, was reportedly being investigated by the SEC. A tale as old as time, yet always fresh in its audacity. 🧙♂️
The assertion stemmed from a news report published by The Information. The report alleged that Jon Isaac, the company’s presumed president, engaged in deceptive behavior, including earnings inflation and stock manipulation. A classic act of financial theater. 🎭
At this stage, the SEC has not confirmed the existence of any new probe into Alt5 Sigma. BeInCrypto did not manage to track down the filing. It did, however, find another complaint that the SEC filed against Isaac in 2021. A ghost from the past, haunting the present. 🕯️
The Ongoing SEC Case Against Live Ventures
Isaac is a Las Vegas-based venture capitalist and entrepreneur who currently serves as the CEO of Live Ventures Incorporated, a publicly traded company. A man of many hats, though none seem to fit perfectly. 🎩
Following this week’s allegations against Isaac for his involvement in fraudulent practices over the Alt5 Sigma-WLFI deal, Isaac took to social media to refute the accusations. A performance worthy of a Shakespearean tragedy. 🎭
In an X post, he denied having any leadership role with Alt5 Sigma, clarifying that he currently only operates as the head of Live Ventures. He did, however, admit to owning over 1 million shares of Alt5 Sigma. A shareholder with a side of denial. 💼
Setting the record straight on reports from @CoinpediaNews and @theinformation: I am NOT the president of ALT5 Sigma and I am NOT under SEC investigation mentioned in these reports.
I am the CEO of Live Ventures Incorporated (NASDAQ: LIVE), a publicly traded company. Any SEC…
– Jon Isaac (@Jonisaac702) August 19, 2025
On its part, Alt5 Sigma used its own social media to clarify that it “has no knowledge of any current investigation regarding its activities by the US SEC.” A statement as empty as a vault without gold. 🚫
ALT5 Sigma has been made aware of reports in the press and on social media. For the record: Jon Isaac is not — and never was — the President of ALT5 Sigma and he is not an advisor to the company. The company has no knowledge of any current investigation regarding its activities…
– ALTS (@ALT5_Sigma) August 19, 2025
However, the posts omit key details. On its website, Alt5 Sigma currently lists Tony Isaac, Jon Isaac’s father, as the company’s director. A family affair, where secrets are as plentiful as shares. 👨👦
In 2021, the SEC charged Live Ventures and JanOne, another publicly traded company, with a series of fraudulent misrepresentations. A dance of deceit, as old as the markets themselves. 🕺
Jon and Tony Isaac are directly implicated in the complaint: Jon as the CEO of Live Ventures, and Tony as the CEO of JanOne and a member of Live’s board of directors. In 2024, JanOne rebranded itself to Alt5 Sigma. A new name, same old game. 🎭
The accusations made by the SEC against both companies are extensive. A litany of sins, as long as a Wall Street ledger. 📜
Allegations of Inflated Earnings and Stock Manipulation
In August 2021, the SEC formally charged Jon Isaac and Live Ventures with multiple reporting violations. These include inflated income and earnings per share, stock promotion and secret trading, and undisclosed executive compensation. A recipe for chaos. 🍳
The filing also implicated Virland Johnson, Live and JanOne’s chief financial officer, for allegedly aiding and abetting Isaac. A team effort, where guilt is shared like a bad investment. 💸
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The regulator alleged that Live and Isaac overstated earnings per share by 40% by improperly understating the company’s outstanding share count. A numbers game with no rules. 🎲
Furthermore, the SEC claimed that Isaac hired a stock promoter to boost interest in Live Ventures, compounding the market impact. A PR stunt with a side of deception. 📣
According to court documents filed with the Nevada Federal District Court, Isaac’s legal team strongly denies and disputes these allegations. Independent of the complaint, Live’s stock increased significantly in the final months of 2016. A stock rise, but a reputation fall. 📉
A Case of Overcompensation and Underreporting
The SEC investigation also alleged that Live Ventures, Isaac, and Johnson misrepresented the date on which Live acquired ApplianceSmart, a new subsidiary of JanOne Incorporated. A date, a lie, a legacy. 📅
Following the acquisition, Live Ventures allegedly recognized a “bargain purchase gain” of over $3.7 million in the first quarter of 2018. This gain represents a profit recorded when a company buys another business for less than the value of its assets. A bargain, but at what cost? 💰
The complaint further alleged that Isaac underreported his executive compensation in key disclosure documents presented before Live Venture’s shareholders. A salary, a secret, a scandal. 🤫
According to the SEC, the company reported that Isaac received only $162,000 of additional compensation between 2016 and 2018.
In reality, he had apparently received nearly twice that amount. A double dose of deceit. 💸
Isaac’s Continued Relationship with Alt5 Sigma
Though the investigation against Isaac is ongoing, the SEC is asking that, if found guilty, Jon Isaac and Johnson be barred from acting as officers or directors of a public issuer. A fate worse than death for a man of ambition. 🚫
Since Tony Isaac is only referenced as a related person in the complaint and is not listed as a defendant, these requests would not apply to him. A father, a shield, a loophole. 🛡️
Despite not having a direct leadership role with Alt5 Sigma, a document the company filed with the SEC in 2024 proves that a formal business relationship between Isaac, Johnson, Live Ventures, and Alt5 Sigma exists. A web of connections, as tangled as a spider’s lair. 🕷️
The filing details a two-year Consulting Agreement between Isaac and Alt5 Sigma that began in March 2024. Isaac’s responsibilities include providing strategic financial advice, sales and business development guidance, and holding weekly calls with management. A consultant with a side of controversy. 📞
It also revealed that Isaac Capital Group and Live Ventures were Alt5 Sigma creditors when it operated as JanOne. A creditor, a debtor, a cycle of deceit. 💵
Isaac’s promissory note debt was converted into 465,753 shares in December 2024. This conversion underscores that Isaac remains a significant shareholder, keeping his financial interests tied to Alt5 Sigma even as he distances himself publicly. A shareholder with a heart of gold… or a ledger of lies. 🏦
Meanwhile, Alt5 Sigma’s website does not list Johnson in a leadership role.
However, Johnson signed the 2024 SEC filing in March 2025 as the company’s chief financial officer. A CFO with a shadow of doubt. 🕵️♂️
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2025-08-22 23:24