Troy Lyndon

On September 25, 2013, the United States Securities and Exchange Commission announced that they entered into a regulatory, non-criminal civil lawsuit against Lyndon.[4] The SEC alleged, without ever providing evidence to the court, that Lyndon inflated the company's revenue by granting stock as pay to a consultant, who then sold the stock, and used the proceeds to purchase inventory of the company.

Lyndon entered into a no-admit, no-deny settlement with the SEC. After the SEC failed to provide discovery in accordance with the terms of the settlement agreement with Lyndon, Lyndon filed an appeal which includes documents providing the public with 10 years of Left Behind Games' "audited" financials to support his claim that the SEC fraudulently fabricated financial records to the court in order to wrongfully obtain a financial judgment.[5]

Independent of the SEC's allegations, the SEC suspended trading of Left Behind Games, Inc. in September–October 2013, due to lack of information about the company, after failure to file certain reports with the SEC.[6] In Lyndon's appeal, he claims and provides evidence to substantiate that the reason Left Behind Games was unable to meet its quarterly filing requirements was a result of a lack of finances, resulting directly from SEC's interference with the company's $10 million financing in October 2011. In Lyndon's appeal, he alleged that SEC investigators intentionally omitted material evidence and accordingly, such staff could be held liable for damages against Lyndon in accordance with the Federal Tort Claims Act of 2013.[7] The Ninth Circuit court denied Lyndon's appeal in just 4 pages, disagreeing with only 1 of 26 points of evidence, without addressing the other 25.[8]

On January 27, 2020, Lyndon filed a lawsuit based upon his Federal Tort Claim in Troy Alan Lyndon v. USA[9], Securities & Exchange Commission, Luccee Kirka, Carol Shau and Karen Matteson. Lyndon alleges the SEC, lead investigator, staff accountant, and prosecutor, knowingly presented the court with a financial claim they knew, or should have known, was inconsistent with the facts, namely the company's audited financials and documented testimony they had secretly taken from the company's auditors while keeping this exculpatory evidence away from Lyndon and the court in their original litigation. Lyndon's numerous attempts to obtain the auditor testimony documents from the SEC under the Freedom of Information Act were denied. However, after filing his lawsuit, on April 1, 2020, the SEC's FOIA office granted Lyndon's appeal and denied SEC's claimed exceptions.