Tr?id=566623520170033&ev=PageView&noscript=1

Unregistered Broker Faces SEC Charges for Illegally Selling Securities

Posted on September 11th, 2023 at 11:31 AM
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.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

You guys are good!

Mike L.

LATEST NEWS AND ARTICLES

1779287606 Law
May 20, 2026
FINRA Sanctions Ameriprise for Supervisory Failures in Variable Annuity Exchanges

The Financial Industry Regulatory Authority (FINRA) has fined Ameriprise Financial Services and ordered restitution to resolve allegations that the firm failed to adequately supervise certain variable annuity exchange recommendations.

1779216500 Law
May 19, 2026
SEC Fines Ally Invest Advisors Over Undisclosed Robo-Advisor Conflict

The Securities and Exchange Commission (SEC) imposed a $500,000 penalty on Ally Invest Advisors after finding that the firm failed to disclose a material conflict of interest tied to its Cash-Enhanced robo-advisor accounts.

1779206639 Law
May 19, 2026
Federal Court Upholds FINRA's Authority in Alpine Securities Challenge

A federal court has rejected a broad constitutional challenge to the authority of the Financial Industry Regulatory Authority (FINRA), delivering a significant victory for the self-regulator and reinforcing its enforcement framework.