Litigation Releases (Jay S. Lucas and Lucas Brand Equity, LLC)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26538 / April 24, 2026

Securities and Exchange Commission v. Jay S. Lucas and Lucas Brand Equity, LLC, No. 1:26-cv-03408 (S.D.N.Y. filed Apr. 24, 2026)

SEC Charges Private Equity Fund Adviser and Co-Founder in Alleged Fraud

On April 24, 2026, the Securities and Exchange Commission filed fraud charges against Jay S. Lucas and Lucas Brand Equity, LLC ("LBE"), an unregistered investment adviser Lucas controlled, for allegedly making fraudulent misrepresentations to investors and misappropriating investor money.

According to the SEC's complaint, between 2013 and 2025 Lucas and LBE fraudulently induced hundreds of individuals to invest more than $50 million in three private equity funds they advised, Lucas Brand Equity LP, Lucas Brand Equity Emerging Growth LP, and Lucas Brand Equity Wellness Growth LP. The SEC alleges that Lucas and LBE told investors that their money would be used to invest in early stage or startup companies in the wellness, beauty, and skincare sectors, but instead Lucas and LBE misappropriated millions of dollars to fund Lucas's personal expenses and other business interests, and used investor money for rent on residences, alimony payments, wedding expenses, personal real estate investments, payments to a political consultant, and funding a New Hampshire newspaper Lucas owned. The SEC further alleges that Lucas and LBE made other material misrepresentations to investors about the use of investor funds, management expenses, audits, and the nature of fund assets, and failed to disclose a financial conflict of interest regarding a fund portfolio company that received the largest amount of investor funds. In addition, the SEC alleges that Lucas misappropriated investor money from an investment vehicle he created to invest in Flags of Valor, LLC, a Virginia-based company that produces flags and other patriotic decorations.

The SEC's complaint, filed in the United States District Court for the Southern District of New York, charges Lucas and LBE with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2) and 206(4) of the Investments Advisers Act of 1940 and Rule 206(4)-8 thereunder. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties.

On December 18, 2025, in a parallel criminal action, the United States Attorney's Office for the Southern District of New York announced an indictment charging Lucas with securities fraud, investment adviser fraud, wire fraud, and money laundering.

The SEC's investigation was conducted by David Frisof, Brian Vann, Ann Rosenfield, and Margaret Vizzi and was supervised by Brian Quinn and Michael Brennan. The team was assisted by Daniel Faigus of the Division of Examinations. The litigation will be led by Anna Area under the supervision of James Carlson. The SEC appreciates the assistance of the United States Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation.