SEC v. False Forms ADV Filings — U.S. Securities and Exchange Commission Litigation Release No. 26622, dated August 27, 2026.
The SEC charged 38 entities for allegedly making material misrepresentations in their Form ADV filings to appear as legitimate U.S. investment advisers. These entities used false addresses, disconnected phone numbers, and fabricated ownership structures to deceive investors between 2025 and 2026. Some also falsely claimed their private funds' financial statements were audited by nonexistent firms and marketed themselves with fake SEC registration certificates.
In Plain English
Imagine someone pretending to be a helpful guide to find treasure. They give you a fake map with made-up locations and a fake phone number to call. They also say their boss, who doesn't exist, checked their work. The SEC is charging these pretend guides for lying about who they are and what they do to trick people into trusting them with their money.
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
- Creating Fake Advisory Firms The defendants established 38 separate entities that they presented as legitimate investment advisory firms. They then filed Forms ADV with the SEC, which are official documents used by investment advisers to register and provide information about their business.
- Fabricating Business Presence To appear legitimate, these entities falsely claimed to have places of business at specific addresses in Colorado, despite having no actual presence there. They also provided phone numbers that were either disconnected or belonged to unrelated businesses.
- Mimicking Ownership and Audits The defendants disclosed ownership structures and financial data that were identical or nearly identical across many of the purported advisory firms. They also falsely claimed that the financial statements for the private funds they advised had been audited by one of two specific independent public accounting firms.
- Using Non-Existent Auditors The two accounting firms cited for auditing the private funds' financial statements could not be found in any public registry of federal or state accountancy firms, indicating these auditors were entirely fabricated.
- Marketing with Fake Credentials Some of the defendants were marketed on websites that displayed a fake certificate, falsely indicating that the entity was registered with the SEC, even though it was not. This was done to create a false impression of legitimacy and lure investors.
- Ignoring SEC Inquiries When Commission counsel attempted to verify the information, many of the defendants, some using IP addresses from foreign jurisdictions to file, failed to respond to requests for records to substantiate the details on their Forms ADV.
The Enforcement Action
The Securities and Exchange Commission charged 38 entities with making material misrepresentations in Forms ADV filed between 2025 and 2026 to falsely portray themselves as legitimate advisory firms. The complaints allege that the defendants, some of whom used IP addresses tracked to foreign jurisdictions, failed to respond to requests for records to substantiate their filings. The SEC seeks permanent injunctions, conduct-based injunctions prohibiting them from filing Forms ADV as exempt reporting advisers, and civil penalties.