FAKE FIRM CLAIMS $10 MILLION, VANISHES LIKE SMOKE!

SEC v. Supreme Power Capital Management Ltd. — U.S. Securities and Exchange Commission Litigation Release No. 26535, dated April 23, 2026.

The SEC charged Supreme Power Capital Management Ltd. with making false statements in its filings with the agency. The company claimed to be an Exempt Reporting Adviser, manage $10 million in assets, and operate from New York City office space. However, investigations revealed these claims were unsubstantiated, leading to a default judgment against the firm.

In Plain English

Imagine someone tells the government they are a legitimate business that helps people invest money. They fill out a form saying they have an office in a fancy building and manage a lot of money. But when the government checks, they find out the office doesn't know the person, and no money is actually being managed there. Because the person lied on the official form, the government stops them from doing it again and makes them pay a penalty.

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. False Claim of Status Supreme Power Capital Management Ltd. filed a Form ADV in December 2023, falsely representing itself as an Exempt Reporting Adviser. This status is for private fund advisers not required to register with the SEC.
2. Fabricated Office Presence The company claimed to be a public company operating from office space in New York City. However, the real estate manager of the purported office space had no knowledge of Supreme Power or its executives.
3. Misrepresented Assets Under Management Supreme Power falsely stated it managed $10 million in assets in the United States. This claim was unsubstantiated and contradicted by other filings.
4. Non-existent Private Fund The firm alleged it advised a private fund. However, a separate registered investment adviser (RIA) that should have reported information about this fund had not done so.
5. Lack of Public Record A search of the SEC's public company database yielded no information on Supreme Power, contradicting its claim of being a public company.
6. Failure to Substantiate Claims When Commission attorneys requested records to support the information provided in its Form ADV, Supreme Power failed to respond, further indicating the falsity of its representations.

The Enforcement Action

On April 20, 2026, the U.S. District Court for the Southern District of New York entered a final judgment by default against Supreme Power Capital Management Ltd. The judgment permanently enjoins Supreme Power from future violations of Sections 204(a) and 207 of the Investment Advisers Act of 1940, and permanently enjoins Supreme Power, its owners, and its executive officers from filing a Form ADV as an Exempt Reporting Adviser. The judgment also orders Supreme Power to pay a civil penalty of $1,182,254.

Named in this action: Supreme Power Capital Management Ltd..

Original SEC litigation release ↗ · Browse all cases