Unregistered Broker Faces SEC Charges for Illegally Selling Securities
From the desk of Jim Eccleston at Eccleston Law
The Securities and Exchange Commission (SEC) has charged Blake Cathey with unlawfully selling securities of Florida-based Accanito Equity LLC, Accanito Equity II LLC, Accanito Equity III LLC, and Accanito Equity IV LLC to retail investors.
The SEC's complaint states that Blake Cathey sold over $4.6 million of Accanito LLC's securities to 15 retail investors across five states between June 2019 and September 2022. Despite not being registered as a broker-dealer or authorized to sell securities, Cathey earned around $760,729 in transaction-based sales commissions from Accanito. According to The DI Wire, the SEC had previously filed an enforcement action against Brent Seaman, the Accanito LLCs, and affiliated entities on July 27, 2023, in connection with the alleged scheme.
The complaint filed by the SEC accuses Cathey of violating securities registration provisions. Cathey has agreed to a judgment that includes injunctive relief, disgorgement, and civil penalties without admitting or denying the allegations. Cathey has also consented to associational and penny stock bars as part of a settled follow-on administrative proceeding. Those bars will be in effect for five years, after which he retains the right to reapply.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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