2026-04-08 sec-litreleases litigation_release 65 KB 2,786 chars

SEC v. Mark D. Anderson; BBFY USA, Inc.; and Captain Drake, LLC, No. LR-26523, District of Minnesota (Apr. 8, 2026) — Press Release

raw: Mark D. Anderson; BBFY USA, Inc.; and Captain Drake, LLC

Mark D. Anderson; BBFY USA, Inc.; and Captain Drake, LLC, No. LR-26523 (Apr. 8, 2026)

Caption
SEC v. Mark D. Anderson, et al.
Source PDF JSON
summary

Mark D. Anderson and his entities, BBFY USA and Captain Drake, face SEC charges for orchestrating a sham sales scheme to raise over $2.4 million through fraudulent offerings.

paragraph

The SEC charged Mark D. Anderson and his entities with orchestrating sham sales totaling approximately $3 million to inflate revenue. This fraud enabled the raising of $1.5 million in convertible debt and over $900,000 in a preferred stock rights offering. Defendants face charges for violating antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.

narrative

The SEC filed charges against Mark D. Anderson, the CEO of Drake’s Organic Spirits, Inc., and his controlled entities, BBFY USA, Inc. and Captain Drake, LLC. Anderson allegedly orchestrated a round-trip transaction scheme, using BBFY USA to book $2.6 million in sham sales in late 2021 to inflate revenue. This allowed the company to raise $1.5 million through a convertible debt offering in 2022. In 2022, Anderson allegedly booked an additional $391,000 in sham sales to facilitate a further $900,000 rights offering for preferred stock in 2023. The defendants face charges for violating various antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC is seeking permanent injunctions, civil penalties, and a conduct-based injunction to bar Anderson from most security-related activities.

Enriched metadata

Scheme
pre-ipo-fraud (95%)
Court
District of Minnesota
Victim loss
$2,600,000
Entity
Mark D. Anderson
Classified pre-ipo-fraud(confidence 95%). EDGAR detection: forms S-1/Form D/1-A· recall 72% / precision 8%. detection rule →
Statutes
Sections 17(a)(1) and (3) of the Securities ActSections 17(a)(1) and (3) of the Securities ActSections 17(a)(1) and (3) of the Securities ActRule 10b-5
Parties
Securities and Exchange CommissionMark D. AndersonBBFY USA, Inc.Captain Drake, LLC
Keywords
andersondrakedrake organicorganic spiritscaptain drakesecurities exchangesham salesmark andersonsecuritiesorganicspiritssalesbbfyusacaptain

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 4
  • $2.60M $2.6 million $1M–$10M
  • $1.50M $1.5 million $1M–$10M
  • $900K $900,000 $100K–$1M
  • $391K $391,000 $100K–$1M
Entities 6
  • company Bbfy USA, Inc.
  • company bbfy usa, inc. and captain drake, llc
  • company Captain Drake, LLC
  • company founder and ceo of drake’s organic spirits, inc.
  • person Mark D. Anderson
  • agency Securities and Exchange Commission
Triples 14
  • Securities and Exchange Commission filed charges against Mark D. Anderson
  • Securities and Exchange Commission filed charges against BBFY USA, Inc.
  • Securities and Exchange Commission objects against Captain Drake, LLC
  • Mark D. Anderson is founder and CEO of Drake’s Organic Spirits, Inc.
  • Mark D. Anderson owned and controlled BBFY USA, Inc. and Captain Drake, LLC
  • Mark D. Anderson directed Drake’s Organic Spirits staff to book $2.6 million in sham sales
  • Mark D. Anderson utilized bank accounts in the names of BBFY USA and another Anderson d/b/a entity
  • Drake’s Organic Spirits and Anderson raised approximately $1.5 million from investors
  • Mark D. Anderson directed Drake’s Organic Spirits staff to book $391,000 in sham sales
  • Drake’s Organic Spirits and Anderson raised more than $900,000 from investors
  • SEC charges Anderson with violating antifraud provisions
  • SEC verb BBFY USA and Captain Drake with violating antifraud provisions
  • SEC seeks permanent injunctions and civil penalties against all defendants
  • SEC seeks conduct-based injunction against Anderson
PDF (from attached: complaint)
MARK D. ANDERSON, BBFY USA, INC., and, : · Source
Text layers
Extracted body text (2,786c) 
U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26523 / April 8, 2026Securities and Exchange Commission v. Mark D. Anderson, BBFY USA, Inc., and Captain Drake, LLC, No. 26-cv-02174 (D. Minn. filed Apr. 7, 2026)SEC Charges Founder and CEO of Minnesota Company in Alleged Fraud SchemeOn April 7, 2026, the Securities and Exchange Commission filed charges against Mark D. Anderson, the founder and CEO of Drake’s Organic Spirits, Inc., and two entities he owned and controlled, BBFY USA, Inc. and Captain Drake, LLC, for allegedly orchestrating sham sales transactions and conducting an offering fraud using false financial statements to solicit investors.The SEC’s complaint alleges that in the last two weeks of December 2021, Anderson directed Drake’s Organic Spirits staff to book approximately $2.6 million in sham sales. To accomplish these sham sales, Anderson allegedly utilized bank accounts in the names of BBFY USA and another Anderson d/b/a entity to transfer funds to Drake’s Organic Spirits. In a series of alleged round-trip transactions, Anderson then transferred approximately the same amount from Drake’s Organic Spirits to Captain Drake. The complaint alleges that between February and December 2022, using offering documents that included the 2021 sham sales, Drake’s Organic Spirits and Anderson raised approximately $1.5 million from investors in an offering of convertible debt. The complaint further alleges that, in 2022, Anderson again directed Drake’s Organic Spirits staff to book approximately $391,000 in sham sales and between approximately February and March 2023, using offering documents that included the false 2022 sales, Drake’s Organic Spirits and Anderson raised more than $900,000 from investors in a rights offering for preferred stock.The SEC’s complaint charges Anderson with violating the antifraud provisions of Sections 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint charges BBFY USA and Captain Drake with violating the antifraud provisions of Sections 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder. The SEC seeks permanent injunctions and civil penalties against all defendants and a conduct-based injunction against Anderson, barring him from participating in the issuance, purchase, offer, or sale of any security, except for purchases or sales for his own personal accounts.The SEC’s investigation was conducted by Emily Scruggs and Kimberly Steckling and supervised by Ian Karpel and Nicholas Heinke, all of the SEC’s Denver Regional Office. The litigation will be led by Zachary Carlyle and supervised by Gregory Kasper.
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U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26523 / April 8, 2026Securities and Exchange Commission v. Mark D. Anderson, BBFY USA, Inc., and Captain Drake, LLC, No. 26-cv-02174 (D. Minn. filed Apr. 7, 2026)SEC Charges Founder and CEO of Minnesota Company in Alleged Fraud SchemeOn April 7, 2026, the Securities and Exchange Commission filed charges against Mark D. Anderson, the founder and CEO of Drake’s Organic Spirits, Inc., and two entities he owned and controlled, BBFY USA, Inc. and Captain Drake, LLC, for allegedly orchestrating sham sales transactions and conducting an offering fraud using false financial statements to solicit investors.The SEC’s complaint alleges that in the last two weeks of December 2021, Anderson directed Drake’s Organic Spirits staff to book approximately $2.6 million in sham sales. To accomplish these sham sales, Anderson allegedly utilized bank accounts in the names of BBFY USA and another Anderson d/b/a entity to transfer funds to Drake’s Organic Spirits. In a series of alleged round-trip transactions, Anderson then transferred approximately the same amount from Drake’s Organic Spirits to Captain Drake. The complaint alleges that between February and December 2022, using offering documents that included the 2021 sham sales, Drake’s Organic Spirits and Anderson raised approximately $1.5 million from investors in an offering of convertible debt. The complaint further alleges that, in 2022, Anderson again directed Drake’s Organic Spirits staff to book approximately $391,000 in sham sales and between approximately February and March 2023, using offering documents that included the false 2022 sales, Drake’s Organic Spirits and Anderson raised more than $900,000 from investors in a rights offering for preferred stock.The SEC’s complaint charges Anderson with violating the antifraud provisions of Sections 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint charges BBFY USA and Captain Drake with violating the antifraud provisions of Sections 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder. The SEC seeks permanent injunctions and civil penalties against all defendants and a conduct-based injunction against Anderson, barring him from participating in the issuance, purchase, offer, or sale of any security, except for purchases or sales for his own personal accounts.The SEC’s investigation was conducted by Emily Scruggs and Kimberly Steckling and supervised by Ian Karpel and Nicholas Heinke, all of the SEC’s Denver Regional Office. The litigation will be led by Zachary Carlyle and supervised by Gregory Kasper.

Related documents (1)