SEC Charges Florida SEC in Illegal Stock Sale Scheme
On December 9th, 2024, the Securities and Exchange Commission (SEC) announced securities fraud charges against Steve A. Smith, Jr. and Xtreme Fighting Championships, Inc. Mr. Smith Jr. is the Chief Executive Officer (CEO) of the company. He reportedly engaged in an illegal stock sale scheme. In total, the SEC alleges that the illegal sale scheme generated approximately $5 million in improper proceeds between 2020 and 2022. Within this article, our Miami investor rights lawyers provide an overview of the charges.
SEC Charge: Steve A. Smith, Jr. and Xtreme Fighting Championships, Inc.
In a civil complaint filed in the United States District Court for the Southern District of Florida, the SEC has charged a Destin-based company called Xtreme Fighting Championships, Inc. and CEO Steve A. Smith, Jr. with fraud related to unregistered stock sales. The SEC contends that the unlawful conduct generated over $5 million in proceeds—with at least $436,000 going directly to Xtreme Fighting and Mr. Smith Jr. Between January of 2020 and April of 2022, the company allegedly issued stock to entities controlled by Smith and the late in-house counsel in order to create a facade of legality. The SEC is seeking financial penalties, disgorgement, and an injunction.
What to Do If You Sustained Losses in an Illegal Stock Sale in Florida
Do you believe that you sustained major investment losses in an illegal stock sale? If so, it is imperative that you take immediate action to protect your legal rights and your financial interests. Here are three key steps investors should take to address an illegal stock sale in Florida:
- Protect Your Finances: First and foremost, it is crucial that you protect your finances from the risk of any additional losses. You should ensure that your accounts are protected and that no more funds go into the securities associated with the illegal stock sale. The best way to address losses is to prevent them from happening in the first place.
- Document What Happened: Documentation is key to any investment fraud claim. You should gather all relevant documentation related to the stock purchase, including emails, transaction records, brokerage statements, and communications with the company or brokers. You should also record the dates, amounts involved, and any representations made.
- Consult With a Lawyer: Finally, it is imperative that you seek qualified legal counsel. An experienced Florida securities fraud lawyer can review your case and help you take action to address losses linked to an illegal stock sale. The sooner you take action, the better your chances for recovering financial compensation for your investment losses.
Contact Our Miami Securities Fraud Attorneys Today
At Carlson & Associates, P.A., our Miami investment fraud attorneys are always prepared to go the extra mile to protect the rights and interests of investors. If you suffered losses due to securities fraud, we are here as a legal resource. Contact our investment fraud team today for your fully confidential initial consultation. From our office in Miami, we serve investors throughout the region.
Source:
sec.gov/enforcement-litigation/litigation-releases/lr-26188
