meta_id 3148324

On May 7, 2026, the U.S. Securities and Exchange Commission (SEC) filed charges in the U.S. District Court for the Southern District of Florida against Reign Financial International, LLC, Reign Financial International, Inc., their principals Giorgio Johnson and Gary Mills, Florida resident Patrick Allen, Berone Capital, LLC, and its principals Jeremiah Beguesse and Fabian Stone for their roles in an alleged fraudulent investment scheme. The scheme involved three purported high-yield investment programs (HYIPs) that raised over $26 million from at least 31 investors. According to the SEC's complaint, the defendants enticed investors with promises of outsized short-term profits with minimal risk, claiming funds would be used to source opaque financial instruments involving leverage through European banks. The SEC alleges the HYIPs did not exist, many investors lost their principal, and no investors received any profits. The complaint further alleges that Reign, Johnson, Mills, and Allen misappropriated investor funds, while Berone, Beguesse, and Stone violated their fiduciary duties by misappropriating hedge fund assets for personal use, including spending on jewelry, luxury cars, and private jet travel. Reign, Johnson, and Mills have consented to entry of a judgment, subject to court approval, without admitting or denying the allegations. The settlement includes permanent injunctions from future violations, a permanent officer and director bar against Johnson, disgorgement of $1,116,650, prejudgment interest of $372,420, and civil penalties of $1,116,650. The charges against Berone, Beguesse, and Stone remain pending. The SEC's complaint alleges violations of Section 17(a)(1) and (3) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5(a) and (c), and Section 206(1) and 206(2) of the Investment Advisers Act of 1940. REFERENCES: U.S. Securities and Exchange Commission. (May 12, 2026). Litigation Release No. 26552: SEC Charges Two Firms, an Investment Adviser, and Their Principals for Their Roles in an Alleged Fraudulent Investment Scheme Involving Purported High-Yield Investment Programs. Retrieved from SEC.gov