TROPICAL SCAM! $20 MILLION VANISHES IN EXOTIC TREE FARM FRAUD!

SEC v. James Brian Blaylock — U.S. Securities and Exchange Commission Litigation Release No. 26604, dated August 10, 2026.

The SEC charged James Brian Blaylock for his role in a fraudulent offering scheme that raised over $20 million from investors. Blaylock, who was not a registered broker, managed a call center that cold-called potential investors for a scheme involving exotic hardwood and citrus trees. He was found to have violated securities laws and was permanently enjoined from future violations, ordered to pay a $100,000 civil penalty.

In Plain English

Imagine someone selling you a special investment in magical trees that grow lots of money. They promised big profits from these trees. This person wasn't allowed to sell investments, but they hired people to call strangers and convince them to give money for this tree dream. The government stepped in because this was a scam, and they stopped the person from selling any more investments and made them pay a fine.

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. The Pitch: Exotic Trees for Profit Between May 2017 and March 2021, Blaylock and others allegedly convinced investors to give them over $20 million. The sales pitch focused on profits from a unique investment in exotic hardwood and citrus trees located in Belize.
2. Unregistered Brokerage Operation James Brian Blaylock managed a call center where salespeople were instructed to 'cold call' potential investors. Blaylock himself was not registered as a broker or dealer, meaning he was not legally permitted to solicit or sell securities.
3. Targeting Investors Salespeople working under Blaylock's management used the phones to reach out to individuals, presenting the investment opportunity in the Belizean tree farm. The goal was to persuade these individuals to invest their money in the scheme.
4. SEC Investigation and Complaint The Securities and Exchange Commission (SEC) investigated the activities. On May 6, 2022, the SEC filed a complaint against Blaylock and others, alleging violations of federal securities laws related to the fraudulent offering and unregistered brokerage activities.
5. Default Judgment Entered As a result of the SEC's action, on July 20, 2026, the Court granted the SEC's motion for default judgment against Blaylock. This ruling found that Blaylock had violated key provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.
6. Final Judgment and Penalties On July 21, 2026, the Court entered a final judgment. Blaylock was permanently barred from violating securities laws and from soliciting any person or entity to buy or sell securities. He was also ordered to pay a $100,000 civil penalty.

The Enforcement Action

SEC Obtains Final Judgment Against Unregistered Broker Charged In Fraudulent Offering Scheme. On July 21, 2026, the U.S. District Court for the Central District of California entered a final judgment as to Defendant James Brian Blaylock for his role in an alleged fraudulent offering of unregistered securities. On May 6, 2022, the SEC filed a complaint alleging that, between May 2017 and March 2021, Blaylock and others raised more than $20 million from investors through securities offerings to share in profits generated by an exotic hardwood and citrus tree farm located in Belize. The complaint alleged that Blaylock, who was not registered as a broker or dealer, managed a center where salespeople “cold called” prospective investors. On July 20, 2026, the Court granted the SEC’s motion for default judgment, finding that Blaylock violated Sections 5(a) and 5(c) of the Securities Act of 1933 and Section 15(a) of the Securities Exchange Act of 1934. The final judgment permanently enjoins Blaylock from violating the above-mentioned provisions of the federal securities laws and from soliciting any person or entity to purchase or sell any security. The Court also ordered Blaylock to pay a civil penalty of $100,000.

Named in this action: James Brian Blaylock, TKO Farms, Inc, Agravitae, Inc., Kenneth Dewayne Owen, Reynaldo Aguilar (Jr.), Ross Gregory Erskine.

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