SEC Charges Unregistered Broker for Unlawful Sales of Securities to Retail Investor

The Securities and Exchange Commission (SEC) has officially pressed charges against Blake Cathey for the unauthorized sale of securities from Florida-based entities Accanito Equity, LLC, Accanito Equity II, LLC, Accanito Equity III, LLC, and Accanito Equity IV, LLC, collectively referred to as the Accanito LLCs, to retail investors. This action follows a previous enforcement lawsuit filed against Brent Seaman, the Accanito LLCs, and related entities on July 27, 2023, related to the alleged fraudulent scheme.

The SEC’s complaint outlines that Cathey engaged in the sale of Accanito LLCs’ securities to 15 retail investors spanning five states, amassing at least $4.655 million between June 2019 and September 2022. Throughout this duration, Cathey pocketed approximately $760,729 in transaction-based sales commissions from Accanito. Importantly, he conducted these sales without possessing the necessary registration as a broker-dealer or the authorization to vend securities.

In response, the SEC’s complaint charges Cathey with violations of securities registration regulations as stipulated in Sections 5(a) and 5(c) of the Securities Act of 1933. Furthermore, he has been charged with the infringement of broker-dealer registration provisions outlined in Section 15(a)(1) of the Securities Exchange Act of 1934. While Cathey has neither admitted nor denied the claims made in the complaint, he has agreed to a judgment that mandates injunctive relief combined with disgorgement and civil penalties. These penalties will be determined by the court at a later date. Cathey has also accepted associational and penny stock bars, with the provision of reapplication rights after a 5-year period. These actions are part of a resolved follow-on administrative proceeding.

The SEC’s examination was carried out under the umbrella of the Miami Regional Office’s Fraud Against Minority Groups Initiative. The investigation was overseen by Andre Zamorano, Alise Johnson, and Mark Dee in the Miami Regional Office and was under the supervision of Thierry Olivier Desmet, Fernando Torres, and Glenn S. Gordon.