BROKER LIED ABOUT HIS CUT! Pocketed $70K Commission Secretly!

SEC v. David Hudzik — U.S. Securities and Exchange Commission Litigation Release No. 26455, dated December 23, 2025.

The SEC charged Native American Energy Group, Inc., its CEO, and a consultant with fraud related to an unregistered securities offering. The consultant, David Hudzik, acted as an unregistered broker-dealer and misrepresented his commissions. He has now settled with the SEC, agreeing to pay disgorgement, interest, and a civil penalty, and is barred from certain activities.

In Plain English

Imagine someone selling shares in a company like a salesperson, but they weren't licensed to do that job. This person also told people they'd get a cut of the money, but didn't tell them the full story. Now, a court has ordered this person to pay back money they made, plus extra fees, and has banned them from selling certain types of stocks in the future.

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. Acting as an Unregistered Broker David Hudzik acted as a broker for Native American Energy Group, Inc. without being properly registered with the SEC, which is a requirement for selling securities.
  2. Selling Unregistered Shares Hudzik sold shares of Native American Energy Group, Inc. that were not registered with the SEC, meaning they had not gone through the required public review process.
  3. Misrepresenting Commissions Hudzik misrepresented to potential investors the amount of commission he stood to receive from the sale of these unregistered shares.

The Enforcement Action

On December 11, 2025, the U.S. District Court for the Eastern District of New York entered a final consent judgment against David Hudzik. Hudzik was permanently enjoined from violating securities laws, ordered to pay $70,000 in disgorgement, $17,472.10 in prejudgment interest, and a $70,000 civil penalty. He is also barred from serving as an officer or director of a public company and from participating in any penny stock offering, except for personal trades.

Named in this action: David Hudzik.