SEC Bars Quillan Black From Association With Any Broker, Dealer or Investment Adviser

The SEC barred social media influencer Quillan Black from working in the securities industry over unregistered broker activity, according to an order posted Sept. 30.

According to the order, Black co-owned and operated KOT LTD, called KOT4X, an unregistered entity that held itself out as a broker and offered customers trading in "contracts for differences." The order says the stock-based contracts qualified as security-based swaps under the federal securities laws.

The order says Black "solicited U.S. retail investors to trade in security-based swaps" between 2019 and 2025. It says customers deposited approximately $296 million into their KOT4X trading accounts during that period and that Black received a portion of commissions and spreads from trading activity as compensation.

According to the order, Black violated the Exchange Act by effecting transactions in security-based swaps for others without being registered with the Commission as a broker-dealer or associated with a registered broker-dealer.

Black submitted an offer of settlement, which the Commission accepted, and consented to the order without admitting the findings, except as to the Commission's jurisdiction over him and the subject matter, the order says. It directs Black to cease and desist from further violations and to pay the penalty within 10 days.