SEC v. Reign Financial International, LLC, Reign Financial International, Inc., Giorgio Johnson, Gary Mills, Patrick Allen, Berone Capital, LLC, Jeremiah Beguesse, Fabian Stone — U.S. Securities and Exchange Commission Litigation Release No. 26552, dated May 12, 2026.
The SEC charged two firms, Reign Financial, and Berone Capital, along with their principals, for orchestrating a fraudulent investment scheme. They allegedly raised over $26 million from at least 31 investors by promising high yields on purported investment programs that did not exist. Instead, investor funds were misappropriated for personal use, leading to significant investor losses.
In Plain English
Imagine someone promises you a special piggy bank that will magically grow your money super fast with no risk. They take your money, but instead of putting it in a magic piggy bank, they spend it on fancy cars and jewelry. That's what happened here: people promised amazing returns on fake investment programs, took people's money, and then used it for themselves, causing investors to lose 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
- The Promise of Easy Money Defendants Reign Financial, Giorgio Johnson, Gary Mills, and Patrick Allen lured investors with promises of high-yield investment programs (HYIPs). They claimed investors could expect 'outsized short-term profits with little or no risk to their principal,' with funds supposedly used for opaque financial instruments involving leverage through European banks.
- The 'Compass' and 'PBL & 5Js' Programs Patrick Allen, with substantial assistance from the Reign Defendants, administered two fraudulent programs: the 'Compass Program' and 'PBL & 5Js Program.' Investors were told their principal would be secure, returned in weeks, and profits paid weekly.
- Misappropriation Begins In reality, Allen did not invest the funds as promised. Instead, he 'simply stole much of the money for his own personal use and benefit,' leading to investor losses exceeding $6 million in these initial programs.
- Concealing the Truth Despite investor complaints and repeated requests for information, Allen and the Reign Defendants used 'delay tactics and concealed from investors that their funds had never been invested and, instead, had been misappropriated.'
- The 'Reign Program' Launch The Reign Defendants then launched their own similar HYIP, the 'Reign Program,' purportedly using Allen's contacts and bank trading platform. However, they had no real connection to Allen's purported network and knew that investors in Allen's programs had not received profits.
- Raising $20 Million for the Reign Program Despite these red flags, the Reign Defendants secured a $20 million investment for their program. They never invested these funds in any legitimate program because, as alleged, 'it did not exist.'
- Further Misappropriation Portions of the $20 million raised for the Reign Program were also 'misappropriated' by the Reign Defendants for their own use, compounding the losses for investors.
- Berone Capital's Role Meanwhile, Berone Capital, LLC, managed by Jeremiah Beguesse and Fabian Stone, held proceeds from at least one HYIP investor. They allegedly violated their fiduciary duties and fund documents by misappropriating these assets for personal benefit, including spending on 'jewelry, luxury cars, and private jet travel.'
The Enforcement Action
On May 7, 2026, the SEC charged Reign Financial International, LLC, Reign Financial International, Inc., their principals Giorgio Johnson and Gary Mills, Florida resident Patrick Allen, Berone Capital, LLC, and its principals Jeremiah Beguesse and Fabian Stone. Reign, Johnson, and Mills consented to a judgment, subject to court approval, permanently enjoined from future violations, with conduct-based injunctions, a permanent officer and director bar against Johnson, disgorgement of $1,116,650, prejudgment interest of $372,420, and civil penalties of $1,116,650.
Named in this action: Reign Financial International, LLC, Reign Financial International, Inc., Giorgio Johnson, Gary Mills, Patrick Allen, Berone Capital, LLC, Jeremiah Beguesse, Fabian Stone.