SEC settles with Connecticut man over alleged day trading fund fraud and Ponzi-like payments
Bran Crudden and Transparent Equity Entrepreneurs allegedly raised more than $645,000 from about twenty-three retail investors for a day trading fund and pre-IPO funds. They agreed to settle, subject to court approval.
The US Securities and Exchange Commission filed settled charges on October 29, 2026 against Connecticut resident Bran Crudden and his company, Transparent Equity Entrepreneurs, LLC, over an alleged fraudulent investment scheme built around a day trading fund. They agreed to settle by consenting to final judgments, subject to court approval.
What the SEC alleges
According to the complaint, filed in federal court in Connecticut, from March 2021 through at least March 2026 Crudden, operating through Transparent Equity, raised more than $645,000 from approximately twenty-three retail investors. He offered interests in a day trading fund and in various pre-IPO funds.
The SEC alleges Crudden lied to investors about his own track record and the day trading fund’s performance, about how their money would be used, and about the content of certain pre-IPO opportunities. The complaint also alleges that Crudden and Transparent Equity misappropriated investor funds and tried to hide losses by sending falsified statements and making Ponzi-like payments to investors who asked to withdraw.
The settlement
Without admitting the allegations, Crudden and Transparent Equity consented to final judgments that would permanently enjoin them from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. They would pay, jointly and severally, $544,390 in disgorgement and $129,736 in prejudgment interest. Crudden would also pay a $236,451 civil penalty and be permanently barred from issuing, buying, offering or selling any security except in his own accounts.
What it means for traders
The pattern alleged here, a claimed trading record, statements showing gains and withdrawals paid from other investors’ money, is common to many trading-fund frauds. A statement sent by the manager is not proof the money exists. Before giving money to anyone to trade for you, check their registration and who holds the assets; our guide on how to check a broker’s licence shows where to look.
The final judgments still need the court’s approval.
Markets: Stocks
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