The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Mark D. Anderson, BBFY USA, Inc, and Captain Drake, LLC.

The SEC’s complaint, submitted at the Minnesota District Court on April 7, 2026, alleges that Anderson, and his entities, BBFY and Captain Drake, engaged in a fraudulent scheme that raised more than $2.4 million for another of Anderson’s entities, Drake’s Organic Spirits, Inc.

Drake’s manufactured organic alcoholic products; Anderson was the company’s founder and Chief Executive Officer. From its founding in 2016 to when it ceased operations in 2023, Drake’s raised approximately $21 million from approximately 180 investors in multiple securities offerings. Drake’s is now defunct, and investors lost most of their investments.

Anderson, who had made significant investments in Drake’s, planned to increase the company’s revenues to position it for a sale to a larger company. When Anderson saw that Drake’s 2021 revenue was headed towards an over 30 percent shortfall from the amount he had touted to investors, he orchestrated sham sales in late 2021 to make it appear that Drake’s sales had dramatically increased.

In mid-2022, he utilized a similar scheme when Drake’s was short on cash. Anderson used promotional materials containing these inflated sales figures to raise more than $2.4 million from Drake’s investors.

For instance, in the last two weeks of December 2021, Anderson directed Drake’s staff to book approximately $2.6 million in sham sales. To accomplish these sham sales, Anderson used bank accounts in the names of his entities BBFY and Liquid Solutions (an unregistered Anderson d/b/a entity), to transfer funds to Drake’s. Anderson then transferred approximately the same amount from Drake’s to another of his entities, Captain Drake, to recoup his funds.

In these round-trip bank transfers, no physical inventory was transferred; indeed, Drake’s did not have sufficient inventory to fill the “orders.” There were no documents evidencing the sales such as

bills of lading, title transfers, or invoices. The sham sales were included in Drake’s offering documents, fraudulently increasing Drake’s annual sales while concealing that Anderson’s entities were the supposed customers.

The SEC seeks permanent injunctions against the defendants and civil penalties pursuant to Securities Act Section 20(d) [15 U.S.C. § 77t(d)] and Exchange Act Section 21(d) [15 U.S.C. § 78u(d)].