SEC v. Adamant Stone Limited — U.S. Securities and Exchange Commission Litigation Release No. 26597, dated August 3, 2026.
The SEC charged Adamant Stone Limited, a purported investment adviser, with making material misrepresentations and unsubstantiated statements in its Form ADV filing. The company falsely claimed to be an Exempt Reporting Adviser, manage $10 million in assets, and advise a private fund. In reality, the Denver office space had no knowledge of the company, and a related RIA had not reported information about the purported fund. Adamant Stone failed to provide records to substantiate its claims and was permanently enjoined from future violations, ordered to pay a $1,182,254 civil penalty.
Imagine someone tells you they are a licensed doctor and manage a big hospital. But when you check, the hospital has never heard of them, and they can't show any proof of their license or patients. That's what Adamant Stone Limited did. They told the SEC they were a special type of investment manager with lots of money to manage, but they couldn't prove any of it, and the places they mentioned didn't know them. The SEC stepped in and stopped them, fining them over a million dollars.
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.
On July 30, 2026, the U.S. District Court for the District of Colorado entered a final judgment by default against purported investment adviser Adamant Stone Limited. The SEC’s complaint, filed on November 13, 2025, alleged that in its September 2024 Form ADV, Adamant Stone represented that it is an Exempt Reporting Adviser; that it operates from office space in Denver; that it manages $10 million in assets in the United States; that it advises a private fund; and that a separate registered investment adviser (RIA) reports information about the private fund on its own Form ADV. Contrary to Adamant Stone's representations, the complaint alleged that the business occupant of the Denver office space had no knowledge of Adamant Stone or its purported Chief Executive Officer, and the separate RIA had not reported information about the purported private fund. The complaint also alleged that the Commission had not found any reporting of information about the private fund on other filings with the SEC, and that a search of the Commission's public company database yielded no information on Adamant Stone. Additionally, the SEC alleged that Adamant Stone failed to respond to a request by Commission attorneys to provide records to substantiate the information on its Form ADV. The final judgment permanently enjoins Adamant Stone from future violations of Sections 204(a) and 207 of the Investment Advisers Act of 1940, and permanently enjoins Adamant Stone, its owners, and its executive officers from filing a Form ADV as an Exempt Reporting Adviser. In addition, the judgment orders Adamant Stone to pay a civil penalty of $1,182,254.
Named in this action: Adamant Stone Limited.