May 1, 2024 at 03:07PM
Former Intrusion CEO Jack Blount has settled with the SEC over allegations of making false and misleading statements about his company’s product and his own background. The settlement, subject to court approval, involves Blount accepting an officer and director bar, without admitting or denying the SEC’s allegations or paying a financial penalty. This follows an earlier SEC settlement with Texas-based Intrusion in September 2023.
The meeting notes detail the SEC’s allegations and subsequent settlement with Jack Blount, the former CEO of Intrusion. Blount has been accused of making false and misleading statements about a product called Intrusion Shield, as well as exaggerating his own background and experience. The SEC charged Blount with breaking anti-fraud rules and sections of the Securities Act. Despite not admitting or denying the allegations, Blount has agreed to an “officer and director bar” that will prevent him from holding similar positions in the future. The lawsuit by the SEC against Blount follows an earlier settlement with Texas-based Intrusion in September 2023. Blount and Intrusion allegedly misled about the success of Intrusion Shield, including overstating the number of beta testers who purchased the product and falsely claiming that “Customer A” had installed Shield appliances across its global offices. Additionally, allegations suggest that Blount instructed the then-CFO not to disclose that one customer received the product for free.