SEC v. Steve A. Smith, Jr.

Steve A. Smith, Jr. allegedly engaged in a fraudulent scheme to sell Xtreme Fighting stock to the investing public. According to the SEC, Smith and Xtreme Fighting's in-house counsel controlled the stock and sold it in transactions that were neither registered with the Commission nor exempt from registration. Smith allegedly hid their control of the stock to avoid legal limits on sales by insiders by issuing the stock to purportedly unaffiliated entities that, in reality, they controlled. The complaint also alleged that to further the scheme, in April 2022, Smith and Xtreme Fighting publicly filed an annual report falsely stating that Xtreme Fighting's financial statements were audited. Smith allegedly made the false filing because Xtreme Fighting's annual report was delinquent, which restricted sales of the company's stock in the over-the-counter market. Smith allegedly also issued two social media posts about the false filing. The scheme allegedly generated over $5 million in proceeds, of which Xtreme Fighting received at least $436000.

Summary generated from official Securities and Exchange Commission press release