SEC DROPS CHARGES! Were They Framed Or Just Faking It?

U.S. Securities and Exchange Commission Litigation Release No. 26310, dated May 23, 2025.

The SEC has dismissed four civil enforcement actions. Three cases were dismissed entirely with prejudice on May 22, 2025. In a fourth case, claims against specific defendants for unregistered dealer activity were dismissed with prejudice, though the overall litigation continues. The SEC stated these dismissals were policy decisions, not based on the merits of the allegations.

In Plain English

Imagine you're playing a game, and the referee starts some games but then decides to stop playing a few of them. The referee didn't say who was right or wrong in those stopped games; they just decided to end them. The SEC, which is like the referee for financial markets, did something similar by closing four cases. They didn't say if the people they were suing had done anything wrong or not; they just decided to stop pursuing those specific cases.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

  1. SEC Initiates Enforcement Actions The Securities and Exchange Commission (SEC) filed several civil enforcement actions against various defendants. These included cases against Adam R. Long, et al. (filed Sept. 28, 2023), Tri-Bridge Ventures, LLC, et al. (filed Apr. 29, 2024), LG Capital Funding, LLC, et al. (filed June 7, 2022), and River North Equity LLC, et al. (filed Mar. 11, 2019).
  2. Allegations of Unregistered Dealer Activity In the case of Securities and Exchange Commission v. River North Equity LLC, et al., the SEC specifically alleged claims against River North Equity, LLC, Edward M. Liceaga, and Michael A. Chavez for unregistered dealer activity. This activity falls under Section 15(a) of the Securities Exchange Act of 1934.
  3. SEC Seeks Dismissal of Claims On May 22, 2025, the SEC filed joint stipulations with defendants in three of these cases to dismiss the ongoing civil enforcement actions against them with prejudice. This means those cases cannot be brought again.
  4. Dismissal of Specific Claims in Fourth Case In the River North Equity LLC case, the SEC also filed joint stipulations with defendants River North Equity, LLC, Edward M. Liceaga, and Michael A. Chavez to dismiss the Commission's claims against them for unregistered dealer activity. This dismissal was also with prejudice.
  5. Litigation Continues in One Case While claims against certain defendants were dismissed in the River North Equity LLC matter, the SEC's litigation in that case otherwise remains ongoing. The specific nature of the ongoing claims is not detailed in this release.
  6. Dismissals Based on Policy, Not Merits The SEC explicitly stated that its decision to dismiss these pending enforcement actions and claims was based on its judgment that the dismissals are appropriate as a policy matter. This decision was not an assessment of the merits of the claims that were alleged in the actions.
  7. No Impact on Other Cases Furthermore, the SEC clarified that its decision to seek dismissal in these specific cases "does not necessarily reflect the Commission’s position on any other case." This indicates that the dismissals are case-specific and not a general change in enforcement approach.

The Enforcement Action

On May 22, 2025, the Securities and Exchange Commission filed joint stipulations with the defendants in three separate cases to dismiss, with prejudice, the following ongoing civil enforcement actions against them: Securities and Exchange Commission v. Adam R. Long, et al., Case No. 1:23-cv-14260 (N.D. Ill. filed Sept. 28, 2023); Securities and Exchange Commission v. Tri-Bridge Ventures, LLC, et al., Case No. 3:24-cv-05711 (D.N.J. filed Apr. 29, 2024); and Securities and Exchange Commission v. LG Capital Funding, LLC, et al., Case No. 1:22-cv-03353 (E.D.N.Y. filed June 7, 2022). Also on May 22, 2025, the Commission filed joint stipulations with defendants River North Equity, LLC, Edward M. Liceaga, and Michael A. Chavez in a fourth ongoing civil enforcement action, Securities and Exchange Commission v. River North Equity LLC, et al., Case No. 1:19-cv-01711 (N.D. Ill. filed Mar. 11, 2019), to dismiss, with prejudice, the Commission’s claims against them for unregistered dealer activity under Section 15(a) of the Securities Exchange Act of 1934. The Commission’s litigation in this matter otherwise remains ongoing. The Commission’s decision to exercise its discretion and dismiss these pending enforcement actions and claims rests on its judgment that the dismissals are appropriate as a policy matter, not on any assessment of the merits of the claims alleged in the actions. Furthermore, as stated in each of the joint stipulations, the Commission’s decision to seek dismissal of the actions or claims “does not necessarily reflect the Commission’s position on any other case.”