I think he was played by Jared as well. I suspect Jared told him all he had to do was update the financials and the chill would be lifted. I also don't think he knew about EESO's disgorgement penalties.
He started out by updating or creating a new website, updated the financials. Then when we filled him in on what Jared failed to tell him, he then amended the financials and went silent. Probably because he realised he was sold or given a dead horse.
Jared was pretty slick about it, got him to take over before the final judgement was entered. That may have put Timmy in the hot seat as EESO's agent, the person they'll call upon to make good on the penalties.