The Securities and Exchange Commission (SEC) has filed a complaint in the Florida Southern District Court against Reign Financial International, LLC; Reign Financial International, Inc.; Giorgio Johnson; Gary Mills; Patrick Allen; Berone Capital, LLC; Jeremiah Beguesse; and Fabian Stone. The complaint, submitted on May 7, 2026, centers on an alleged fraudulent investment scheme involving multiple high-yield investment programs and the misappropriation of hedge fund assets.
According to the SEC, from at least March 2021 through October 2022, Reign, Johnson, and Mills engaged in a scheme to defraud at least 31 investors. The complaint alleges that they raised more than $26 million through the offer and sale of securities tied to three purported high-yield investment programs. These programs are identified as the Compass Program, the PBL & 5Js Program, and the Reign Program.
The SEC claims that through these programs, Allen and the Reign Defendants represented that investor funds would be placed into investments designed to generate extraordinary short-term profits with little to no risk. However, the complaint alleges that these investment programs did not actually exist. Instead, millions of dollars of investor funds were allegedly misappropriated by the defendants rather than invested as promised.
Allegations Involving Hedge Fund Assets
The complaint further addresses the conduct of Berone Capital, LLC, Jeremiah Beguesse, and Fabian Stone in relation to a hedge fund they managed. The hedge fund held investor funds derived from at least one of the fraudulent investment programs. The SEC alleges that these defendants violated their fiduciary duties by misappropriating hedge fund assets for their own personal use and benefit.
According to the filing, the Berone Defendants used hedge fund assets to pay for personal expenditures, including jewelry, luxury cars, and private jet travel. These alleged actions form part of the broader misconduct described in the SEC's complaint.
Relief Sought by the SEC
In its action, the SEC seeks multiple forms of relief against the defendants. The requested remedies include permanent injunctive relief aimed at preventing future violations, disgorgement of ill-gotten gains, and the imposition of civil penalties. Additionally, the SEC is seeking an officer and director bar against Defendant Johnson.
The case highlights the SEC's focus on alleged fraudulent high-yield investment schemes and the misuse of investor capital, including funds held within hedge fund structures. The outcome of the proceedings will determine the extent of any sanctions and remedies imposed on the named defendants.
