SEC charges 5 Fruits Enterprises with fraud

The Securities and Exchange Commission (SEC) has filed a civil enforcement action against Las Vegas-based 5 Fruits Enterprises LLC, its founder, Calvin Guess, and co-manager Marcus Ligon, accusing them of running an investment fraud scheme that used automated trading “bots” to defraud investors. The complaint, filed in the U.S. District Court for the District of Nevada on September 4, 2025, alleges the defendants falsely represented that investor funds were being traded by profitable automated systems when those bots either did not exist or were not used as advertised.

According to the SEC, 5 Fruits marketed options-trading services and promised investors high, consistent returns driven by proprietary automation. The agency says promotional materials and direct communications overstated performance and misrepresented how client funds were handled — conduct that, the SEC asserts, violated the federal securities laws. Bloomberg Law reported regulators' view that the advertised trading bots “didnt really exist,” a central allegation in the SECs case.

The court's final judgment against 5 Fruits Enterprises details monetary remedies. The judgment orders disgorgement of $1,156,166.13 (net profits) plus prejudgment interest of $253,048.11, and imposes a civil penalty on the defendants, reflecting the SECs demand that ill-gotten gains be returned and future misconduct be deterred. The judgment is publicly available in the SECs litigation files.

What this means for investors: the SECs action underscores the risk of trusting online promises of automated trading returns without verifiable evidence. Investors tempted by “bot” trading services should demand audited performance records, clear custody arrangements, and independent verification of trading activity before committing funds. Regulators have increasingly targeted schemes that use flashy technology claims to mask misappropriation or false performance reporting.

The SEC's litigation release and accompanying court documents provide the full complaint, judgment, and related materials for public review. As enforcement activity continues, the case against 5 Fruits Enterprises highlights both the persistent creativity of fraudsters and the SECs focus on protecting retail investors from deceptive trading schemes. For investors and advisers, the key takeaways are diligence, skepticism of unverifiable automation claims, and the importance of using regulated custodians and transparent platforms.