SEC v. Roderick Vanderbilt — U.S. Securities and Exchange Commission Litigation Release No. 26326, dated June 13, 2025.
The SEC charged Roderick Vanderbilt, former Executive Chairman of Vinco Ventures, Inc., with defrauding investors. Vanderbilt allegedly made false statements in SEC filings and diverted company assets for personal benefit, while secretly controlled by Theodore J. Farnsworth. Vanderbilt has consented to a settlement including permanent injunctions and an officer and director bar, and pleaded guilty in a parallel criminal case.
In Plain English
Imagine a company that's supposed to be doing well, but it's secretly being run by someone who isn't supposed to be in charge. The company's chairman, Roderick Vanderbilt, signed official papers saying everything was fine and that only certain people were in charge. But he was actually helping the secret boss, Theodore Farnsworth, take money from the company for their own use. This made the company look good on paper, but it was losing money, and investors lost a lot of their savings.
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
- Secret Control Established Theodore J. Farnsworth, though not publicly visible, secretly controlled Vinco Ventures, Inc. He hand-selected Roderick Vanderbilt in October 2021 to join Vinco's Board of Directors, effectively placing Vanderbilt in a position of public authority.
- False Filings Begin As Executive Chairman, Vanderbilt began signing SEC filings, including proxy statements and materials. These filings contained materially false and misleading statements about Vinco's management and business operations.
- Concealing Farnsworth's Role Specifically, Vanderbilt signed filings that identified Vinco's officers and directors but deliberately failed to disclose Farnsworth's secret control and involvement in the company's management.
- Misrepresenting Business Operations In addition to hiding Farnsworth's role, Vanderbilt signed SEC filings that misrepresented the operational status of key business components and their potential to generate revenue for Vinco.
- Asset Diversion Vanderbilt participated in a scheme to divert millions of dollars of Vinco's corporate assets. These funds were channeled to Farnsworth for their personal benefit.
- Personal Use of Funds Farnsworth used the diverted Vinco money for personal expenses, including travel, luxury vehicles, and home renovations. The funds also financially supported Vanderbilt himself.
- Executive Chairman's Benefit Through his participation in this fraudulent scheme, Vanderbilt personally received financial benefits totaling at least hundreds of thousands of dollars.
- Investor Losses Mount While the scheme was ongoing, Vinco's stock price plummeted from a peak of $6.38 during the relevant period to just fractions of a penny, leaving investors with substantial financial losses.
The Enforcement Action
On June 13, 2025, the SEC charged Roderick Vanderbilt with defrauding investors in Vinco Ventures, Inc. by making material misrepresentations in SEC filings and diverting corporate assets. Vanderbilt consented to a bifurcated settlement providing for permanent injunctive relief, an officer and director bar, and seeking disgorgement with prejudgment interest and civil penalties. In a parallel criminal action, Vanderbilt pleaded guilty to the same conduct. The SEC previously charged Theodore J. Farnsworth.
Named in this action: Roderick Vanderbilt.