SEC Charges Lighting Products Company and Four Executives With Accounting Violations

The Securities and Exchange Commission today charged Connecticut-based Revolution Lighting Technologies Inc. for an accounting fraud that falsely inflated its reported revenues over a four-year period. Four Revolution Lighting executives—CEO Robert LaPenta, former CFO James DePalma, and two former CFOs of the firm’s largest division, Allen Garner and Daniel O’Neal— were also charged for their roles in causing Revolution Lighting to misreport its revenue. All have agreed to settlements to resolve the claims against them. According to the SEC’s complaint, from late 2014 to mid-2018, Revolution Lighting improperly recognized revenue for sales much earlier than permitted by accounting rules or the firm’s own written revenue-recognition policies.