Xtreme Fighting Championships Inc. (“Xtreme Fighting”) and its CEO, Steve Smith, have reached an agreement with the U.S. Securities and Exchange Commission (SEC) to pay over $1 million to resolve allegations concerning illegal stock sales and violations of federal securities law. The agreement was filed with a Florida federal court on Thursday, marking the conclusion of the SEC’s investigation into the martial arts organization’s activities.
Under the terms of the proposed final judgments, Xtreme Fighting and Smith will jointly and severally pay a total of $436,000 in disgorgement, which represents net profits obtained from illegal transactions, along with prejudgment interest of $97,509. Xtreme Fighting will also pay a civil penalty of $436,000, while CEO Steve Smith faces an additional civil penalty of $236,451. The total settlement amount exceeds $1 million.
The SEC had filed a lawsuit against Xtreme Fighting and Smith in December 2024, accusing them of orchestrating a scheme to illegally sell large quantities of Xtreme Fighting stock to the public beginning in January 2020. According to the SEC, the sales were conducted without proper registration or exemption, violating federal securities laws. The SEC also alleged that Smith and the organization’s former in-house counsel, Christopher K. Davies (who passed away in 2022), misled investors by concealing their control over the stock.
In the motion for final judgment, the SEC noted that Xtreme Fighting and Smith consented to the settlement terms, which will bring closure to the case. The SEC’s action also highlighted that the illegal stock sales generated more than $5 million in proceeds, with Xtreme Fighting receiving approximately $436,000 of that amount.
“We are pleased to have reached an agreement that resolves these matters and allows Xtreme Fighting and Mr. Smith to move forward,” said an SEC spokesperson. “This case serves as a reminder that any attempt to circumvent securities laws will be met with strict enforcement.”
The settlement comes after discussions between the SEC, Xtreme Fighting, and Smith, with a joint status report filed in late March outlining the terms of the agreement. The case, titled Securities and Exchange Commission v. Steve Smith et al., is currently pending before U.S. District Judge Rodolfo A. Ruiz II in the Southern District of Florida.
