The SEC alleges that Leroy Brown Jr. touted his own military connection as an Army veteran while soliciting members of the military and other investors through his firm LB Stocks and Trades Advice LLC. Brown is not a licensed securities professional as he claimed and his firm is not registered with the SEC, Financial Industry Regulatory Authority, or other regulator. Brown and his firm have no evident experience with investments.
The SEC’s complaint, filed in U.S. District Court for the Western District of Texas, charges Brown and LB Stocks and Trades Advice with securities fraud and conducting an unregistered securities offering. The SEC is seeking financial penalties and disgorgement of ill-gotten gains as well as permanent injunctive relief. The court has issued an order temporarily freezing all assets of Brown and LB Stocks and Trades Advice.