Cold Calls for a Belize Tree Farm: Court Enters Default Judgment Against Unregistered Broker in TKO Farms Case

Published Oct. 12, 2026. Case statuses are current as of that date, based on SEC records.

The pitch was a share of profits from an exotic hardwood and citrus tree farm in Belize, delivered by phone from a cold-calling center. A federal court has now entered a final judgment by default against the man the SEC says ran that center.

On July 21, 2026, the U.S. District Court for the Central District of California entered a final judgment against James Brian Blaylock in SEC v. TKO Farms, Inc. et al., No. 8:22-cv-00941 [1]. The day before, the court granted the SEC's motion for a default judgment.

What a default judgment means: A default judgment is entered when a defendant fails to defend the lawsuit. It is a binding ruling against Blaylock on the claims the court found, but it was not reached after a trial. The court's findings concern securities registration and broker registration, not fraud.

What the SEC alleged

The SEC's complaint, filed May 6, 2022, alleged that between May 2017 and March 2021, Blaylock and others raised more than $20 million from investors through securities offerings to share in profits generated by the Belize tree farm [1]. The SEC alleged Blaylock, who was not registered as a broker or dealer, managed a center where salespeople "cold called" prospective investors.

The release describes the overall offering as "fraudulent," but the violations the court found against Blaylock himself are the registration provisions listed below. This article does not name the other defendants; the release does not describe their status.

What the court ordered

The court found that Blaylock violated Sections 5(a) and 5(c) of the Securities Act (selling unregistered securities) and Section 15(a) of the Exchange Act (acting as an unregistered broker) [1]. The final judgment:

• Permanently enjoins him from violating those provisions;
• Bars him from soliciting any person or entity to buy or sell any security; and
• Orders a $100,000 civil penalty.

The release does not mention disgorgement for Blaylock or any criminal case.

How "exotic asset" boiler rooms work

Overseas farms, timber, gemstones and similar tangible-sounding assets are popular with high-pressure phone sales because they are hard for buyers to inspect. Callers often work from scripts, stress tax advantages or "land-backed" safety, and are paid large commissions. Because the asset is far away, investors frequently rely on photos and progress reports supplied by the sellers themselves. Registration rules exist so that someone, the SEC, a state regulator or FINRA, is checking the seller and the disclosures before the money moves.

How an SEC civil case works

The Securities and Exchange Commission is a civil regulator. It cannot send anyone to prison. When it sues, it asks a federal judge for remedies such as an injunction (a court order not to break the securities laws again), disgorgement (giving up money obtained through the alleged violations), prejudgment interest, civil penalties, and sometimes bars from serving as a company officer or director or from working in the securities industry. Criminal charges, when they exist, are brought separately by the Justice Department.

A complaint is the SEC's side of the story. Until a court rules, or a defendant settles, the claims in it are allegations. Many defendants settle "without admitting or denying" the allegations, which means they accept a judgment and its penalties without conceding that the SEC's account is accurate. A "consent" that is "subject to court approval" is not final until a judge signs it. A "bifurcated" settlement resolves liability and the injunction now while leaving the dollar amounts for the judge to decide later. A default judgment is entered when a defendant does not respond to the lawsuit; it is a ruling against that defendant, but it is not a finding after a trial.

Red flags of phone-sold investments

• Unsolicited calls pitching an investment you never asked about.
• Faraway assets you can't visit or verify, such as farms, timber or mines.
• Callers who can't give a CRD number or say they don't need to be registered.
• Pressure to decide on the call or "before the harvest."

Before you hand anyone money for an investment

• Check the seller. Search the person and firm on Investor.gov and FINRA BrokerCheck. People who sell securities for commissions generally must be registered.
• Check the offering. Search the company name in the SEC's EDGAR database and your state securities regulator's enforcement actions.
• Treat "guaranteed" returns as a warning. Real investments carry risk. Promises of fixed monthly profits, or a guarantee that you can't lose your principal, are hallmarks of Ponzi-style schemes.
• Watch for pressure and secrecy. Deadlines, "sold out" claims, or requests to wire money to a personal or unfamiliar account deserve a pause.
• Ask how you get your money out. Excuses, delays, or new conditions when you try to withdraw are a serious red flag.

If you think you were affected

1. Save your records: account statements, wire confirmations, emails, texts and marketing materials.
2. Report it to the SEC at sec.gov/tcr and to your state securities regulator. If money was stolen, you can also report to the FBI at ic3.gov.
3. Follow the court case. If a receiver or fair fund is created, notices about claims are usually posted on the court docket or a receiver's website. The SEC does not charge fees to return money.
4. Beware of "recovery" offers. Scammers often target people who already lost money, promising to get it back for an upfront fee.

Case status (as of Oct. 12, 2026)

Defendant	Court	Status	Source
James Brian Blaylock	U.S. District Court, C.D. Cal. (No. 8:22-cv-00941)	Default judgment granted July 20, 2026; final judgment entered July 21, 2026 (registration violations; solicitation bar; $100,000 penalty)	[1]

Statuses can change. An SEC complaint contains allegations, not findings, unless a court has ruled.

Sources

1. U.S. Securities and Exchange Commission, Litigation Release No. 26604, "SEC Obtains Final Judgment Against Unregistered Broker Charged In Fraudulent Offering Scheme," Aug. 10, 2026. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26604

---

Corrections and updates: If you are named in this article, or represent someone who is, and believe anything here is inaccurate or out of date (including a dismissal, judgment, settlement or change in case status), please contact us at editorandchief@scammers.com. We will review it and update the article promptly.