SEC Settlement Orders Brian Keasberry to Pay $87,864, Imposes Penny Stock Bar
SEC settlement bars Brian Keasberry and requires $87,864 in disgorgement, interest and penalties over an alleged 2017 to 2021 microcap stock fraud scheme.
Summary
On August 20, 2026, the U.S. District Court for the Southern District of New York entered a final consent judgment against Brian Keasberry in SEC v. Jonathan Farber et al., No. 24-cv-00273, filed January 12, 2024. The judgment enjoins Keasberry from violating Securities Act Sections 5(a), 5(c), and 17(a), Exchange Act Section 10(b), and Rule 10b-5. He must pay $37,500 in disgorgement, $12,864 in prejudgment interest, and a $37,500 civil penalty, and is subject to penny stock and officer and director bars.
The SEC alleged that from September 2017 through at least October 2021, Keasberry and two co-defendants accumulated, manipulated, and sold shares of an unidentified small public company to retail investors. Keasberry allegedly helped the others control the company and much of its publicly available stock, while his companies funded online promotions touting the shares without disclosing the paid campaign, defendants’ control, or their sales of most freely tradable shares. The SEC published Litigation Release No. 26615 on August 21, 2026; Marc Jones and Alfred Day of its Boston Regional Office are handling the ongoing litigation.
Positives
- The August 20, 2026 judgment requires $87,864 in combined disgorgement, prejudgment interest, and civil penalties.
- Penny stock and officer and director bars restrict Keasberry’s future participation in microcap companies.
- The injunction covers registration, antifraud, and market manipulation provisions under both the Securities Act and Exchange Act.
- The SEC’s broader litigation remains active under Marc Jones and Alfred Day of the Boston Regional Office.
Risks & concerns
- The alleged accumulation, manipulation, promotion, and sale scheme continued from September 2017 through at least October 2021.
- Online promotions allegedly concealed that defendants funded the campaign and controlled the unidentified public company.
- Defendants allegedly sold most freely tradable shares while promotions emphasized the stock’s potential to retail investors.
- The SEC alleged Keasberry helped two co-defendants control the company and a large portion of its publicly available stock.
- The release does not identify the microcap company, limiting investors’ ability to assess which security and shareholders were affected.