SEC v. Traci J. Anderson, Timothy W. Carnahan and CYIOS Corporation (2015)
Judgment entered
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 December 2015 an SEC administrative law judge found CYIOS Corporation and its chief executive Timothy Carnahan liable for periodic-reporting, certification and Securities Act failures, ordering $37,500 disgorgement and penalties of $375,000 and $75,000, and dismissed the case against accountant Traci Anderson.
The record
| Agency | SEC |
|---|---|
| Release number | 3-16386 |
| Date filed | 2015-12-21 |
| Date resolved | 2015-12-21 |
| Court | SEC administrative law judge |
| Status | judgment |
| Asset class | equities |
| Venue | Nasdaq |
| Criminal parallel | No |
| Defendants | Traci J. Anderson, CPA ; Timothy W. Carnahan ; CYIOS Corporation |
| Cited as charged or alleged | Exchange Act s.13(a) ; Securities Act s.17(a) |
| Techniques |
What was ordered
- Civil penalty
- $450k
- Disgorgement
- $37.5k
- Prejudgment interest
- —
- Total relief
- $488k
- Alleged gain
- —
What is alleged to have happened
An SEC administrative law judge issued this initial decision on December 21, 2015, after a proceeding begun in February 2015.
The judge found that CYIOS violated, and Carnahan caused violations of, the periodic-reporting rules, that Carnahan breached the certification and internal-control rules, and that CYIOS violated Section 17(a)(3) of the Securities Act, while finding no violation of Section 17(a)(2). The decision reverses an earlier ruling and dismisses the charge that Anderson, an accountant, worked for CYIOS while barred by the PCAOB, because applying the issuer bar would be impermissibly retroactive. CYIOS became public through a 2005 reverse merger, which is only background; the conduct is not a reverse-merger scheme, so the technique tag is removed.
CYIOS was ordered to disgorge $37,500 with interest and to pay a $375,000 penalty, and Carnahan a $75,000 penalty, a combined $450,000. The record also listed officer-and-director and registration bars that the decision does not impose, and they are cleared. The decision was open to review.
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
- 2015-12-21 Initial decision
Primary documents
Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.