A federal court has entered a final consent judgment against Brian Keasberry in an SEC case involving County Line Energy stock. The SEC alleged that Keasberry helped finance promotional campaigns while defendants concealed their control of the company, ownership of its tradable shares and ongoing stock sales. Keasberry must pay disgorgement, interest and a civil penalty totaling $87,864 and is subject to permanent penny-stock and public-company officer-and-director bars.
U.S. Securities and Exchange Commission (SEC)
Official Release:
https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26615
NEWS:
The final judgment against Brian Keasberry resolves his part of an SEC enforcement action alleging a coordinated microcap stock scheme involving County Line Energy Inc. County Line was a small California company whose shares traded through OTC Link under the ticker CYLC. During the relevant period, it described its business as manufacturing self-contained hydroponic systems used to grow plants, vegetables and cannabis. The SEC's complaint states that trading in County Line stock was minimal—and at times nonexistent—before the alleged scheme developed. From September 2017 through at least October 2021, Keasberry and co-defendants Jonathan Farber and Aarif Jamani allegedly accumulated, controlled, promoted and sold large quantities of County Line shares. The complaint says Farber and Jamani installed associates or handpicked figureheads in management positions, influenced company decisions and obtained control over most shares available for public trading. Keasberry allegedly participated through entities he controlled, including Black Ridge Holdings and Blue Diamond Equities. Those entities reportedly received proceeds from County Line stock sales and made payments to stock promoters. The SEC alleged that the defendants ultimately sold more than 15 million shares and divided more than $5 million in proceeds generated by the transactions.
The alleged scheme combined corporate control, trading activity and promotional content in a way that concealed the sellers' economic interests from retail investors. According to the SEC, the defendants first gained control of the issuer and a substantial portion of its freely tradable shares. They then used friendly purchasers and controlled accounts to buy and sell County Line stock, creating an appearance of market activity in a security that previously had little genuine trading. At the same time, promotional campaigns highlighted the company's supposed potential and directed investors to press releases that Farber and Jamani allegedly caused County Line to issue. The promotions did not adequately reveal that the defendants had paid for the campaign, exercised influence over the issuer and were selling much of the stock being promoted. Keasberry's alleged role included using controlled companies to fund promotional expenses with proceeds derived from County Line stock sales and helping transactions appear to be independent, arm's-length sales. The complaint further alleged that stock was sold through offshore nominee accounts and that the defendants concealed their status as company affiliates. That status mattered because control persons and affiliates generally face registration, disclosure and volume restrictions when selling issuer securities. The SEC alleged that no effective registration statement or applicable exemption covered the challenged sales.
The U.S. District Court for the Southern District of New York entered the final consent judgment against Keasberry on August 20, 2026. The judgment permanently enjoins him from violating Sections 5(a), 5(c) and 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5. It orders him to pay $37,500 in disgorgement, $12,864 in prejudgment interest and a $37,500 civil penalty. Keasberry is also permanently barred from participating in penny-stock offerings and from serving as an officer or director of a qualifying public company. The judgment resolves the SEC's claims against Keasberry, while litigation involving the remaining defendants continues. For investors, the allegations show why a promotional article or issuer press release cannot be assessed independently from the company's ownership and trading structure. Warning signs may include a previously inactive stock experiencing sudden volume, repeated announcements about minor developments, promotional materials that do not clearly identify who paid for them, concentrated ownership of the public float and sellers operating through nominees or affiliated entities. Investors should examine public filings, transfer-agent information, changes in share structure, reverse splits, promotional disclaimers and the identities of parties supplying shares to the market. A company may have a real legal existence and publicly quoted stock while the available market is still heavily influenced by a small group whose interests are not aligned with new retail buyers.
KEY POINTS:
- The court entered a final consent judgment against Brian Keasberry in the SEC's County Line Energy microcap enforcement case.
- The SEC alleged that defendants controlled the issuer and much of its tradable stock while concealing their involvement from retail investors.
- Companies controlled by Keasberry allegedly received stock-sale proceeds and financed online campaigns promoting County Line shares.
- The broader complaint alleges that more than 15 million shares were sold and approximately $5 million in proceeds was divided among the defendants.
- Keasberry must pay $87,864 in disgorgement, interest and penalties and is permanently barred from penny-stock offerings and specified public-company leadership roles.