World Liberty Financial, valued at $1.5 billion, denies the fraud allegations from the SEC (SEC), but records indicate otherwise.

After a report surfaced this week alleging that the U.S. Securities and Exchange Commission (SEC) was investigating Jon Isaac for fraud in a multibillion-dollar transaction between Alt5 Sigma and World Liberty Financial, Isaac refuted these claims and disassociated himself from the company's leadership team. After investigating the matter, BeInCrypto discovered that Isaac and Alt5 Sigma (formerly known as JanOne Incorporated) were part of another ongoing SEC investigation. In 2021, regulators charged Isaac with financial and disclosure fraud. Investigation into Alt5 Sigma Earlier this week, it was revealed that Alt5 Sigma was under investigation by the U.S. Securities and Exchange Commission (SEC) for a $1.5 billion deal with U.S. President Donald Trump's World Liberty Financial. The claim stems from a news report published by The Information. According to the report, the company presumed that its president, Jon Isaac, had engaged in deceptive practices, including misrepresenting earnings and manipulating stocks. At this time, the SEC has not confirmed any new investigations into Alt5 Sigma. BeInCrypto was unable to trace the documents in question. But it did find another lawsuit filed by the SEC against Isaac in 2021. 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. Isaac took to social media to refute allegations of Isaac's involvement in Alt5 Sigma-WLFI transaction fraud this week. In the X post, he denied that he had any leadership roles with Alt5 Sigma and clarified that he is currently only the head of Live Ventures. But he admits to owning more than 1,000,000 shares of Alt5 Sigma. For its part, Alt5 Sigma clarified through its social media that it is "not aware of any current SEC investigations into its activities." However, these posts omit key details. On its website, Alt5 Sigma currently lists Jon Isaac's father, Tony Isaac, as a director of the company. While Tony Isaac is not listed as a defendant in the SEC lawsuit, his managerial role links the family directly to Alt5 Sigma. In 2021, the SEC charged Live Ventures and JanOne, another publicly traded company, with a series of fraudulent misrepresentations. Jon and Tony Isaac are directly involved: Jon is the CEO of Live Ventures, and Tony is the CEO of JanOne and a member of Live's board of directors. In 2024, JanOne changed its name to Alt5 Sigma. The SEC's charges against both companies are wide-ranging. Allegations of Misstated Earnings and Stock Manipulation In August 2021, the SEC formally charged Jon Isaac and Live Ventures with multiple reporting violations. These violations include inflated earnings and earnings per share, stock promotions and secret deals, and undisclosed executive compensation. The filing also alleges that Live and JanOne's CFO, Virland Johnson, allegedly aided and abetted Isaac. Although BeInCrypto has made several attempts to confirm with the SEC whether the investigation is still ongoing, it has not received an immediate response. However, according to public documents, the case is still valid. To put the timeline in context, the SEC claims that Isaac orchestrated a deal in 2016 to boost Live Ventures' fiscal year earnings. It argues that Isaac's tactics deceptively created the illusion that negotiations would begin before the end of the year. The transaction generated $915,500 in fraudulent "other income" and increased Live's pre-tax revenue for 2016 by 20.00%. According to the SEC, Isaac profited from the rally in Live stock. During this period, Live Ventures said in a press release that 2016 was the company's most successful year. Regulators allege that Live and Isaac inflated earnings per share by 40.00% by improperly understating the number of shares outstanding in the company. In addition, the SEC claimed that Isaac hired a stock salesman to boost interest in Live Ventures, thereby exacerbating the market impact. Based on court documents filed in the U.S. District Court for the District of Nevada, Isaac's legal team vehemently denied and refuted the allegations. Independently of the lawsuit, Live's stock rose significantly in the final months of 2016. Cases of Overcompensation and Underreporting The SEC's investigation also alleges that Live Ventures, Isaac and Johnson misrepresented the date of Live's acquisition of ApplianceSmart, a new subsidiary of JanOne Incorporated. Following the completion of the acquisition, Live Ventures reportedly recognized more than $3.70 million in "negotiated purchase proceeds" in the first quarter of 2018. This gain refers to the profit recorded when a company acquires another business for less than the value of its assets. The SEC claims that without this gain, Live Ventures would have posted a loss-making quarter. The lawsuit also alleges that Isaac understated his executive compensation in key disclosure filings filed with Live Venture shareholders. According to the SEC, the company reported that Isaac received only $162,000 in additional compensation between 2016 and 2018. In fact, he apparently received almost twice that amount. Isaac's Ongoing Relationship with Alt5 Sigma Although the investigation into Isaac is ongoing, the SEC has demanded that Jon Isaac and Johnson be barred from serving as officers or directors of the public company if they are found guilty. Since Tony Isaac was only mentioned as a relevant person in the lawsuit and was not named as a defendant, these requirements do not apply to him. Despite not directly holding a leadership role at Alt5 Sigma, a filing with the SEC in 2024 by the company attests to a formal business relationship between Isaac, Johnson, Live Ventures, and Alt5 Sigma. The document details a two-year consulting agreement between ISAAC and ALT5 SIGMA, which begins in March 2024. Isaac's responsibilities include providing strategic financial advice, sales and business development guidance, and holding weekly conference calls with management. It also revealed that Isaac Capital Group and Live Ventures were creditors of Alt5 Sigma when it operated as JanOne. Isaac's promissory note debt was converted into 465,753 shares in December 2024. This conversion underscores that Isaac remains a significant shareholder, and that even if he distances himself from Alt5 Sigma in public, his financial interests remain at stake with the company. At the same time, Alt5 Sigma's website does not list Johnson in a leadership role. However, Johnson signed the 2024 SEC filing in March 2025 to serve as the company's chief financial officer.