SEC Wins Final Judgments Against Matthew Brown Over Bogus $200 Million Virgin Orbit Offer
SEC final judgments permanently restrict Matthew Brown and his company over a bogus $200 million Virgin Orbit investment offer and impose a $236,451 penalty.
Summary
SEC Litigation Release No. 26673, dated October 13, 2026, says the U.S. District Court for the Northern District of Texas entered final judgments on September 27 against Matthew Brown and Matthew Brown Companies, LLC. In Securities and Exchange Commission v. Matthew Brown, et al., No. 4:24-cv-00558-O, filed June 17, 2024, the SEC alleged they submitted and publicly promoted a bogus offer to invest $200 million in Virgin Orbit Holdings, Inc., formerly Nasdaq-listed as VORB. The court granted summary judgment on liability on August 19, 2025.
The judgments permanently enjoin Brown and his company from violating Exchange Act Section 10(b) and Rule 10b-5. Brown is barred from participating in securities issuances, purchases, offers or sales, except transactions for his personal account, and from serving as an officer or director of a public company. He must pay a $236,451 civil penalty. The judgments conclude the litigation, led by Patrick Disbennett and supervised by Keefe Bernstein of the SEC’s Fort Worth Regional Office.
Positives
- September 27, 2026 final judgments conclude the SEC litigation against Brown and Matthew Brown Companies.
- August 19, 2025 summary judgment established liability before the court imposed final remedies.
- Permanent Section 10(b) and Rule 10b-5 injunctions prohibit both defendants from future antifraud violations.
Risks & concerns
- The SEC alleged Brown and his company submitted and publicly promoted a bogus $200 million investment offer for Virgin Orbit.
- Brown must pay a $236,451 civil penalty under the final judgment.
- Brown is permanently barred from serving as an officer or director of a public company.
- Brown cannot participate in securities issuances, purchases, offers or sales, except transactions for his personal account.