SEC Litigation Releases

SEC v. Anderson, BBFY USA, Captain Drake - $2.4M Securities Fraud

SEC filed a complaint in the District of Minnesota alleging Mark D. Anderson and his entities BBFY USA, Inc. and Captain Drake, LLC orchestrated a $2.4 million securities fraud scheme. The defendants used sham sales transactions to inflate Drake's Organic Spirits' revenue figures in offering documents, raising approximately $21 million from 180 investors before the company ceased operations in 2023. Investors lost most of their investments.

SEC v. Higgins - Misappropriation of Client Securities

The SEC filed a civil complaint in the District of Oregon against Jeffrey Higgins, a registered representative and investment adviser, alleging he misappropriated over $800,000 in securities from twelve clients between September 2017 and February 2024. Higgins created a fraudulent investment program called Cumulus, using falsified documents and fictitious annual reports to deceive clients about the performance of their investments.

SEC v. Camarda, McArthur, A.G. Morgan Financial - $138M Investment Adviser Fraud

The SEC charged registered investment adviser A.G. Morgan Financial Advisors LLC and its principals Vincent J. Camarda and James E. McArthur with an alleged $138 million offering fraud affecting at least 431 investors. The defendants allegedly recommended high-risk private equity funds while misrepresenting them as conservative investments, misappropriated approximately $1 million for personal use, and failed to disclose conflicts of interest. Criminal charges were also filed by the U.S. Attorney's Office for the Eastern District of New York.

SEC Obtains Final Judgments Against Former Ozy Media Executives

The SEC has obtained final consent judgments against former Ozy Media executives Samir Rao and Suzee Han, resolving litigation over alleged misrepresentations to investors. The judgments permanently enjoin them from violating antifraud provisions and include officer/director bars for Rao.

SEC Obtains Final Consent Judgment Against Investment Adviser Stuart Frost

The SEC has obtained a final consent judgment against Stuart Frost, an investment adviser to five private venture capital funds. Frost was charged with defrauding investors of over $14 million by charging undisclosed incubator fees. He has been permanently enjoined from violating antifraud provisions and ordered to pay a $150,000 civil penalty.

SEC v. Kevan Sadigh - Final Judgment

The SEC has filed a Final Judgment against Defendant Kevan Sadigh in the U.S. District Court for the Central District of California. The judgment permanently enjoins Sadigh from violating securities laws related to insider trading and market manipulation, specifically Section 10(b) and Rule 10b-5, and Section 14(e) and Rule 14e-3 of the Exchange Act.

SEC Dismisses Civil Enforcement Action Against Nader Al-Naji

The SEC announced the dismissal, with prejudice, of its civil enforcement action against Nader Al-Naji and several relief defendants. The dismissal is based on the specific facts and circumstances of the case, as outlined in a joint stipulation filed with the court. The case number is 1:24-cv-05738-JAV.

SEC Obtains Partial Consent Judgments Against Legacy Cares Defendants

The SEC announced partial consent judgments against defendants in a municipal bond offering fraud case. The judgments enjoin the defendants from future securities law violations. This action stems from an alleged scheme involving fabricated documents to inflate revenue projections for a sports complex, leading to bond defaults.

SEC Obtains Final Judgment Against Investment Adviser in Cherry-Picking Scheme

The SEC announced it has obtained a final judgment against Matthew J. Werthe, dba HSR Wealth Management, for engaging in a cherry-picking scheme. The judgment orders Werthe to pay disgorgement, prejudgment interest, and a civil penalty totaling over $1.1 million.

SEC Files Proposed Settlement with Rainberry for Wash Trading Claims

The SEC has filed a proposed settlement with Rainberry, Inc. for wash trading claims, requiring a $10 million civil penalty. This settlement, if approved by the court, would resolve the SEC's claims against Rainberry related to wash trading and dismiss all remaining claims against Rainberry and other defendants, including Justin Sun and associated foundations.