5 Fruits Enterprises Settled Fraud Allegations
A federal judge signed judgments requiring the Las Vegas firm and its co-managers to pay $5.3 million.
Updated on Oct. 1, 2026 in Financial Crime
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5 Fruits Enterprises LLC and its co-managers, Calvin Guess and Marcus Ligon, agreed to a $5.3 million settlement with the SEC. The agreement resolves fraud allegations that the firm misled investors regarding nonexistent automated trading bots.
Why it matters
The settlement concludes a legal challenge involving claims that investors were defrauded by promises of technology that did not exist. It serves as a regulatory action against the misuse of automated trading bot claims.
A federal judge signed the final judgments on September 29, 2026, ordering a joint and several payment of $5.3 million to the SEC. The case status is now closed following the resolution of the civil fraud claims initiated in 2025.
The players
5 Fruits Enterprises LLC
This is a Las Vegas-based company that faced fraud allegations from the SEC regarding its trading technology.
Calvin Guess
He is a co-manager of 5 Fruits Enterprises LLC and a defendant in the SEC fraud case.
Marcus Ligon
He is a co-manager of 5 Fruits Enterprises LLC and a defendant in the SEC fraud case.
Richard F. Boulware
He is a federal judge in the District of Nevada who signed the final settlement judgments in the case.
The details
The SEC lawsuit alleged that the firm and its co-managers defrauded investors by misrepresenting the capabilities and existence of automated trading software. The final judgments signed by Judge Richard F. Boulware mandate the payment to the SEC as a total resolution of the civil allegations.
Timeline
September 2025: The SEC initiated the civil lawsuit against 5 Fruits Enterprises LLC.
September 29, 2026: Judge Richard F. Boulware signed the final settlement judgments.
Legal Context
This case mirrors the recent trend of increased SEC scrutiny toward firms marketing AI-driven or automated trading tools. The resolution aligns with broader efforts to protect investors from potential fraud in the emerging automated trading sector.
The resolution of this case emphasizes the necessity for investors in Las Vegas to verify claims regarding high-tech trading tools. Residents should continue to exercise caution when presented with automated investment opportunities that lack transparent performance data.
The takeaway
Investors should perform rigorous due diligence on any trading firm claiming to utilize proprietary automated software. Verifying company credentials and regulatory history remains the most effective defense against potential financial fraud.
Further reading
For more on enforcement actions in the region, visit Financial Crime.
Source note: This article includes information reported by Bloomberglaw.
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