Litigation Releases (Reign Financial International, LLC; Reign Financial International, Inc.; Giorgio Johnson; Gary Mills; Patrick Allen; Berone Capital, LLC; Jeremiah[...]

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26552 / May 12, 2026

Securities and Exchange Commission v. Reign Financial International, LLC, et al., No. 1:26-cv-23237 (S.D. Fla. filed May 7, 2026)

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

On May 7, 2026, the Securities and Exchange Commission charged Reign Financial International, LLC, Reign Financial International, Inc. (together, "Reign"), their principals, Giorgio Johnson and Gary Mills; Florida resident, Patrick Allen; and Berone Capital, LLC, and its principals, Jeremiah Beguesse and Fabian Stone, for their roles in connection with an alleged fraudulent investment scheme involving three purported high-yield investment programs ("HYIPs") that raised over $26 million from at least 31 investors. Reign, Johnson, and Mills consented to the entry of a judgment, subject to court approval, that would resolve the SEC's litigation as to them.

According to the SEC's complaint, the scheme involved three similar fraudulent HYIPs in which Reign, Johnson, Mills, and Allen enticed investors with promises of outsized short-term profits with little or no risk to their principal, claiming that investor funds would be used to source opaque financial instruments involving leverage through European banks. The complaint alleges that, in reality, the HYIPs did not exist, many investors lost their principal, and no investors received any profits. In addition, the complaint alleges Allen, Reign, Johnson, and Mills misappropriated some of the investor funds. The complaint further alleges Berone, Beguesse, and Stone violated their fiduciary duties and the terms of the governing documents of the hedge fund they managed, which held HYIP investor proceeds, by misappropriating fund assets for their own personal use and benefit, including spending on jewelry, luxury cars, and private jet travel.

The SEC's complaint, filed in the U.S. District Court for the Southern District of Florida, charges Reign, Johnson, Mills, and Allen with violating Section 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(a) and (c) thereunder. The complaint also charges Reign, Johnson, and Mills with aiding and abetting Allen's violations. Additionally, the complaint charges Berone, Beguesse, and Stone with violating Section 206(1) and 206(2) of the Investment Advisers Act of 1940.

Without admitting or denying the SEC's allegations, Reign, Johnson, and Mills consented to the entry of a judgment, subject to court approval, in which they agreed to be permanently enjoined from future violations of the applicable provisions of the federal securities laws, conduct-based injunctions, a permanent officer and director bar against Johnson, disgorgement totaling $1,116,650, prejudgment interest totaling $372,420, and civil penalties totaling $1,116,650.

The SEC's investigation was conducted by Jason Anthony, Michael Flanagan, and Zachary Scrima and was supervised by Paul Pashkoff and Pei Y. Chung. The SEC's litigation will be led by Jennifer Farer and supervised by David Nasse.

The SEC's Office of Investor Education and Advocacy has issued investor alerts on the red flags of investment fraud. Additional information is available on Investor.gov.