By Ethan Faverino |
The Arizona Corporation Commission (ACC) has ordered Tyler Brent Lyman, the former CEO of a Mesa-based solar roofing startup, to pay more than $2.4 million in restitution. An investigation found that Lyman misappropriated nearly $1 million in investor funds for personal expenses, including luxury travel, clothing, and entertainment.
The Commission ordered Lyman to pay $2,433,000 in restitution, along with a $50,000 administrative penalty, and permanently cease and desist from violating the Arizona Securities Act.
According to an 11-page complaint filed by the ACC’s Securities Division in February 2026, Lyman raised at least $2.43 million from at least 27 investors between June 2021 and January 2023 while serving as the founder, president, and CEO of a startup company developing solar-powered roofing tiles.
Investors were offered convertible notes, Simple Agreements for Future Equity (SAFE) contracts, and loan agreements, with representations that their investments would be used exclusively to support the company’s business operations.
According to the complaint, Lyman misappropriated at least $984,696 in investor funds for his personal benefit, despite agreements explicitly prohibiting the use of company investments for personal or household expenses.
The complaint detailed numerous personal expenditures, including international trips to Singapore, Bali, and Dubai, along with vacations to Cabo San Lucas and Pismo Beach.
Regulators also identified spending on luxury clothing, fine dining, entertainment, and family medical expenses.
In October 2022, Lyman transferred approximately $31,000 from the company’s business account into his personal bank account to finance trips to Singapore and Bali.
Investigators also found that Lyman opened a separate bank account in the company’s name without informing other company officers. He subsequently directed certain investors to deposit their investments into the undisclosed account, allowing him to divert portions of the funds before transferring the remaining money to the company.
In one instance, Lyman retained $30,000 from a $100,000 investment in April 2022. In another, he kept approximately $50,750 from two investments totaling $400,000 in October 2022.
The alleged misconduct came to light in February 2023 when company officers launched an internal investigation into accounting irregularities involving investor funds.
According to the complaint, Lyman acknowledged misappropriating the money when confronted by the company’s chief operating officer.
“I was just trying to live above my means,” Lyman stated, according to the complaint. He also indicated that he believed the company’s future success would eventually benefit investors despite his personal use of their money.
Following the company’s internal investigation, Lyman was removed from his leadership positions and entered into a settlement agreement with the company and its investors in April 2023, acknowledging that he had misappropriated between $771,000 and $984,696.
Under the private settlement agreement, Lyman agreed to repay $771,000 plus 12% annual interest through a structured repayment schedule. The agreement also offered a reduction of up to $250,000 in his repayment obligation if he made timely payments.
However, according to the ACC’s February 2026 complaint, Lyman had failed to make any payments toward the settlement as of January 27, 2026.
Unlike the 2023 private settlement, the ACC’s subsequent enforcement action addressed alleged violations of Arizona securities laws, and resulted in a restitution order totaling $2,433,000, equivalent to the full amount Lyman raised from investors.
The complaint also alleged that Lyman failed to disclose two outstanding civil judgments and a third lawsuit involving unpaid debts, which ultimately resulted in default judgments totaling more than $343,000.
Additionally, Lyman was never registered with the Commission as a securities salesman or dealer, and the securities he offered were not registered with the agency.
The Commission’s enforcement action follows its investigation into violations of Arizona securities laws involving unregistered securities transactions and fraudulent practices in connection with the sale of investments.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
