FAKE Firm BLUESKY EAGLE LIED ABOUT $10 MILLION, NYC OFFICE!

SEC v. Bluesky Eagle Capital Management Ltd. — U.S. Securities and Exchange Commission Litigation Release No. 26484, dated February 19, 2026.

The SEC obtained a final judgment against Bluesky Eagle Capital Management Ltd. for making material misrepresentations in its Form ADV filing. The firm falsely claimed to be an Exempt Reporting Adviser, have office space in New York City, and manage $10 million in assets. The judgment permanently enjoins Bluesky Eagle from future violations and orders it to pay a civil penalty of over $1.1 million.

In Plain English

Imagine someone tells you they're a licensed baker with a shop downtown and they've baked 100 cakes. But, when you check, there's no shop, no cakes, and no license. The SEC found a company, Bluesky Eagle, did something similar. They filed papers saying they were a special kind of investment advisor, had an office in New York, and managed $10 million. The SEC investigated and found none of it was true. So, a court ordered the company to stop lying and pay a big fine.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Filing False Information Bluesky Eagle Capital Management Ltd. filed a Form ADV in December 2023, claiming to be an Exempt Reporting Adviser. This is a category for certain private fund advisers who don't need to register with the SEC.
2. Claiming Physical Presence In the same filing, Bluesky Eagle stated it operated from office space in New York City and was a public company. This created an image of a legitimate, established business.
3. Stating Assets Under Management The company also represented that it managed $10 million in assets within the United States. This figure was intended to convey a level of financial activity and success.
4. Alleging Advising a Private Fund Bluesky Eagle further claimed to advise a private fund. Additionally, it stated that a separate registered investment adviser (RIA) was reporting information about this private fund on its own Form ADV.
5. Reality Check: Office Space However, the real estate manager for the purported New York City office space had no knowledge of Bluesky Eagle or its executives, indicating the office claim was false.
6. Reality Check: Related Adviser The separate registered investment adviser mentioned in the filing also confirmed it had not reported any information about the purported private fund, contradicting Bluesky Eagle's statement.
7. Reality Check: Public Records Furthermore, a search of the SEC's public company database yielded no information on Bluesky Eagle, and the Commission found no other filings reporting information about the alleged private fund.
8. Failure to Substantiate When Commission attorneys requested records to back up the claims made in its Form ADV, Bluesky Eagle failed to respond or provide any substantiating documentation.

The Enforcement Action

On February 11, 2026, the U.S. District Court for the Southern District of New York entered a final judgment by default against purported investment adviser Bluesky Eagle Capital Management Ltd. The judgment permanently enjoins Bluesky Eagle from future violations of Sections 204(a) and 207 of the Investment Advisers Act of 1940, and permanently enjoins Bluesky Eagle, its owners, and its executive officers from filing a Form ADV as an Exempt Reporting Adviser. The judgment also orders Bluesky Eagle to pay a civil penalty of $1,182,254.

Named in this action: Bluesky Eagle Capital Management Ltd..

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