SEC v. C-Bond Systems, Inc. and Scott Silverman (2024)
Settled
Checked against the primary document on October 3, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.
In May 2024 the SEC settled with C-Bond Systems and its former CEO Scott Silverman over about $102,000 of revenue recognised on a 2020 order that never left the company's control, which overstated 2020 revenue by more than 15 per cent. They agreed to penalties of $175,000 and $50,000. The case does not concern a reverse merger.
The record
| Agency | SEC |
|---|---|
| Release number | 3-21932 |
| Date filed | 2024-05-09 |
| Date resolved | 2024-05-09 |
| Status | settled |
| Asset class | equities |
| Criminal parallel | No |
| Defendants | C-Bond Systems, Inc. ; Scott Silverman |
| Cited as charged or alleged | Exchange Act s.13(a) ; Securities Act s.17(a) |
| Techniques |
What was ordered
- Civil penalty
- $225k
- Disgorgement
- —
- Prejudgment interest
- —
- Total relief
- $225k
- Alleged gain
- —
What is alleged to have happened
The Securities and Exchange Commission instituted and settled this proceeding on May 8, 2024 (Securities Act release 11285), without admission or denial by the respondents.
The order finds that on December 29, 2020 C-Bond recognised about $102,000 of revenue on a shipment that was held in a shipper's warehouse, returned to C-Bond in March 2021 and never paid for, and that Silverman, then CEO and CFO, signed the 2020 annual report and a December 2021 registration statement carrying the overstated figure after receiving emails that the goods had been returned. The company restated in April 2022. Silverman also did not repay a $21,961 cash bonus and 197 preferred shares as Sarbanes-Oxley Section 304 requires.
The record carried a reverse-merger tag that nothing in the order supports, so it has none. C-Bond was ordered to pay a $175,000 penalty and Silverman $50,000, $225,000 in all, and both to cease and desist from the antifraud, reporting and internal-control provisions. The record had shown $175,000 only.
For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.
Timeline
Primary documents
Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.