SEC v. Quest Education L.L.C.; Daniel Blue; David Christopher White; and Keitoh Jordan Spears, No. LR-26226, District of Nevada (Jan. 17, 2025) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26226 / January 17, 2025 Securities and Exchange Commission v. Quest Education L.L.C., et al., No. 2:25-cv-00105 (D. Nev. filed January 17, 2025) SEC Charges Las Vegas Financial Education Company and Three Las Vegas Residents for Acting as Unregistered Brokers The Securities and Exchange Commission today announced charges against Las Vegas-based financial education company Quest Education LLC, its principal and control person Daniel Blue, and former employees David Christopher White and Keitoh Jordan Spears, for acting as unregistered securities brokers and selling unregistered securities, including the securities of a company that the SEC previously charged in connection with a $20 million offering fraud. The SEC’s complaint alleges that Quest Education touted itself as a financial education company that assisted its customers in setting up self-directed retirement accounts so that they could invest in alternative investments. According to the complaint, in reality, Quest Education’s main source of income was the commission payments it received from third parties in exchange for its customers’ investments in unregistered securities offerings. According to the SEC’s complaint, between October 2019 and April 2023, Quest Education solicited its customers to invest in unregistered securities offerings issued by various companies. The complaint alleges that Blue often worked closely with the companies to understand their business models and funding needs so that Quest Education could more effectively market the entities’ investment opportunities. Quest Education allegedly received approximately $2.5 million in commissions from various companies in exchange for its customers’ investments. The complaint also alleges that, while working for Quest Education, White and Spears each individually promoted various unregistered offerings and received over $200,000 in commissions for customer investments. According to the SEC’s complaint, during the time they promoted and received commissions from these unregistered offerings, Quest Education, Blue, White, and Spears were neither registered as brokers or dealers with the SEC nor associated with brokers or dealers registered with the SEC. Included among the companies that the complaint alleges paid commissions to Quest Education was MJF Holdings, LLC, which the SEC charged in April 2023 in connection with a $20 million offering fraud. During the relevant period, MJF Holdings allegedly paid Quest approximately $1.4 million in commissions. The complaint, filed in the United States District Court for the District of Nevada, charges Quest Education, Blue, White, and Spears with violating Sections 5(a) and 5(c) of the Securities Act of 1933 and Section 15(a) of the Securities Exchange Act of 1934. The complaint also charges Blue as a control person under Section 20(a) of the Exchange Act with respect to Quest Education’s violations of Section 15(a) of the Securities Exchange Act. The SEC seeks permanent injunctive relief, disgorgement with prejudgment interest, and civil penalties. The SEC’s Office of Investor Education and Advocacy cautions investors to check the background of anyone selling them an investment and to always independently research investment opportunities. The SEC’s investigation was conducted by Andrew Mason and Tiffany Kunkle, and supervised by Thomas B. Bosch, all of the Atlanta Regional Office. The SEC’s litigation will be led by Kristin Murnahan and supervised by M. Graham Loomis.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26226 / January 17, 2025 Securities and Exchange Commission v. Quest Education L.L.C., et al., No. 2:25-cv-00105 (D. Nev. filed January 17, 2025) SEC Charges Las Vegas Financial Education Company and Three Las Vegas Residents for Acting as Unregistered Brokers The Securities and Exchange Commission today announced charges against Las Vegas-based financial education company Quest Education LLC, its principal and control person Daniel Blue, and former employees David Christopher White and Keitoh Jordan Spears, for acting as unregistered securities brokers and selling unregistered securities, including the securities of a company that the SEC previously charged in connection with a $20 million offering fraud. The SEC’s complaint alleges that Quest Education touted itself as a financial education company that assisted its customers in setting up self-directed retirement accounts so that they could invest in alternative investments. According to the complaint, in reality, Quest Education’s main source of income was the commission payments it received from third parties in exchange for its customers’ investments in unregistered securities offerings. According to the SEC’s complaint, between October 2019 and April 2023, Quest Education solicited its customers to invest in unregistered securities offerings issued by various companies. The complaint alleges that Blue often worked closely with the companies to understand their business models and funding needs so that Quest Education could more effectively market the entities’ investment opportunities. Quest Education allegedly received approximately $2.5 million in commissions from various companies in exchange for its customers’ investments. The complaint also alleges that, while working for Quest Education, White and Spears each individually promoted various unregistered offerings and received over $200,000 in commissions for customer investments. According to the SEC’s complaint, during the time they promoted and received commissions from these unregistered offerings, Quest Education, Blue, White, and Spears were neither registered as brokers or dealers with the SEC nor associated with brokers or dealers registered with the SEC. Included among the companies that the complaint alleges paid commissions to Quest Education was MJF Holdings, LLC, which the SEC charged in April 2023 in connection with a $20 million offering fraud. During the relevant period, MJF Holdings allegedly paid Quest approximately $1.4 million in commissions. The complaint, filed in the United States District Court for the District of Nevada, charges Quest Education, Blue, White, and Spears with violating Sections 5(a) and 5(c) of the Securities Act of 1933 and Section 15(a) of the Securities Exchange Act of 1934. The complaint also charges Blue as a control person under Section 20(a) of the Exchange Act with respect to Quest Education’s violations of Section 15(a) of the Securities Exchange Act. The SEC seeks permanent injunctive relief, disgorgement with prejudgment interest, and civil penalties. The SEC’s Office of Investor Education and Advocacy cautions investors to check the background of anyone selling them an investment and to always independently research investment opportunities. The SEC’s investigation was conducted by Andrew Mason and Tiffany Kunkle, and supervised by Thomas B. Bosch, all of the Atlanta Regional Office. The SEC’s litigation will be led by Kristin Murnahan and supervised by M. Graham Loomis.