SEC Charges 38 Entities Over Alleged False Adviser Filings

Updated September 1, 2026

The SEC charges 38 entities in separate civil cases alleging they used false or unsupported Form ADV information to make themselves appear to be legitimate U.S. investment advisers. The Securities and Exchange Commission says the disputed filings were submitted during 2025 and 2026 and, in some cases, were allegedly used to lure retail investors. The complaints are allegations, no court has found the defendants liable, and the SEC has not announced an investor restitution fund or aggregate consumer-loss amount.

What Happened When the SEC Charged 38 Entities

The Securities and Exchange Commission announced on August 27 that it had filed 38 separate civil complaints against entities presenting themselves as exempt reporting advisers, or ERAs.

The SEC alleges that the defendants made material misrepresentations in Forms ADV submitted to the Commission during 2025 and 2026.

According to the agency, the allegedly false or unsupported information was used to create the appearance that the entities were legitimate U.S. advisory businesses.

The complaints are civil enforcement actions. They are not criminal convictions or findings that the allegations have been proved.

What the SEC Alleges About the False Adviser Filings

The SEC says some Forms ADV contained business information that could not be substantiated when agency lawyers requested records.

According to the complaints, alleged problems included:

• Colorado business addresses where the entities allegedly had no physical presence;
• telephone numbers that were disconnected or belonged to unrelated businesses;
• ownership structures and numerical information that were identical or nearly identical across numerous purported ERAs;
• claims that private-fund financial statements had been audited by accounting firms the SEC says could not be located in federal or state accountancy registries; and
• websites displaying what the SEC describes as fake certificates suggesting SEC registration.

The SEC also alleges that a number of defendants accessed the Commission’s filing system using IP addresses traced to foreign jurisdictions.

Those statements remain allegations unless established in court.

What Laws the SEC Says Were Violated

The complaints charge the defendants with alleged violations of Sections 204(a) and 207 of the Investment Advisers Act of 1940.

The SEC is asking the federal court for:

• permanent injunctions against violations of the charged provisions;
• conduct-based injunctions preventing the defendants from filing Forms ADV as exempt reporting advisers; and
• civil monetary penalties.

The SEC announcement does not identify a fixed damages amount or restitution award for investors.

What Is Form ADV?

Form ADV is an investment-adviser disclosure form filed through the Investment Adviser Registration Depository.

Information from adviser filings can be made available to the public through regulatory disclosure systems.

But the existence of a Form ADV record should not be treated as an SEC endorsement of a firm, its investment products or every statement supplied by the filer.

This distinction is particularly important in the 38 SEC cases because the agency alleges that the public filing process itself was abused to manufacture credibility.

Why an ERA Filing Is Not SEC Registration

The SEC’s August 27 investor alert about ERA filing scams emphasizes an important distinction.

An exempt reporting adviser is not registered with the SEC.

An ERA generally advises qualifying private funds, such as venture-capital, hedge or private-equity funds, under an exemption from full SEC investment-adviser registration.

The SEC warns that a purported ERA offering investment advice directly to individual retail investors should be treated as a significant warning sign.

Does the SEC Issue Adviser Registration Certificates?

Investors should also be skeptical of professional-looking certificates claiming to prove that an adviser or ERA has been approved by the SEC.

The SEC’s investor alert says scammers may display fake certificates containing SEC file numbers or Central Registration Depository numbers to create an appearance of government approval.

A regulatory filing number should not be interpreted as certification that:

• the SEC recommends the firm;
• the SEC approves its investments;
• the firm’s website is legitimate;
• investment returns are guaranteed; or
• funds sent to the firm are protected from loss.

Why the SEC Removed the 38 ERA Filings

The SEC says it separately removed the ERA filings of all 38 charged entities from the Commission’s website.

That removal is an enforcement and investor-protection action connected to the disputed filings.

It does not itself constitute a final judicial finding of liability against each defendant.

Who May Be Affected?

The clearest concern is for investors who were contacted by one of the 38 entities named in the SEC’s August 27 enforcement announcement.

Investors also should review their records if someone:

• used the name of one of the charged entities;
• showed an alleged SEC registration certificate;
• pointed to an ERA Form ADV as proof that an investment was government approved;
• offered direct investment services to an individual while claiming to be an ERA;
• requested bank wires or cryptocurrency transfers;
• promised unusually high or guaranteed investment returns; or
• demanded another payment before supposedly releasing investment profits.

The SEC has not announced how many individual investors may have dealt with the 38 defendants or how much investors may have lost.

There Is No Announced Investor Refund Fund

The August 27 enforcement action does not establish a public compensation program.

The SEC has not announced:

• a restitution amount;
• an investor loss total;
• a victim claim form;
• a distribution administrator;
• a payment schedule; or
• a claims deadline.

Investors should therefore be suspicious of unsolicited messages claiming that money from the “SEC 38 adviser settlement” is waiting for them.

In particular, do not provide passwords, one-time authentication codes, cryptocurrency seed phrases or an upfront recovery fee merely because a message uses the SEC’s name.

What Changed — and What Did Not

What changed: The SEC filed 38 civil complaints, publicly described the alleged false filing scheme, removed the disputed ERA records and issued a related investor warning.

What did not change: The complaints do not establish liability. No investor compensation program or payment deadline was created, and the enforcement actions do not mean that every Form ADV filing or legitimate exempt reporting adviser is fraudulent.

How Investors Can Verify an Investment Firm

1. Verify the exact legal name. Small changes to a business name can indicate an impersonation operation.
2. Check regulatory status independently. Use Investor.gov’s investment professional background-check resources.
3. Read the status carefully. Determine whether the person or entity is registered, exempt, associated with another firm or not found in the expected system.
4. Do not rely on one filing. Independently verify the address, telephone number, personnel, website domain and custodian.
5. Contact the firm through independently verified information. Do not use only contact details supplied by the person soliciting the investment.

Warning Signs of a Fake Adviser or ERA

The SEC’s investor alert identifies several patterns that deserve additional scrutiny.

• A purported exempt reporting adviser offers investment advice directly to an individual investor.
• A salesperson claims the ERA is “registered with” or approved by the SEC.
• A website displays a supposed SEC certificate.
• The investment promises unusually high, consistent or guaranteed returns.
• A consumer must pay an additional tax, release fee or deposit before withdrawing funds.
• The company asks for payments through cryptocurrency or other difficult-to-reverse methods without a clear legitimate explanation.

What to Do if You Already Sent Money

1. Stop additional payments. Do not send another transfer merely because the firm says it is necessary to unlock an account.
2. Contact the payment provider quickly. Ask the bank, brokerage, cryptocurrency exchange or other provider whether the transfer can be recalled, frozen or flagged. Recovery is not guaranteed.
3. Preserve transaction records. Keep wire confirmations, bank statements, wallet addresses, transaction hashes and canceled checks.
4. Save communications. Preserve emails, text messages, chat logs, telephone numbers, advertisements and investment statements.
5. Save the website. Capture screenshots showing URLs, account balances, investment claims and regulatory representations.
6. Protect exposed credentials. Change compromised passwords and activate stronger multifactor authentication where available.

How to Report Suspected Securities Fraud

Investors can use the SEC’s official securities-fraud tip and complaint process.

A useful report may include:

• the entity’s exact name;
• website addresses;
• names used by representatives;
• telephone numbers and email addresses;
• investment statements;
• purported SEC certificates;
• bank or crypto-payment information; and
• a timeline of communications and payments.

Preserve the submission confirmation after reporting.

Filing a report does not guarantee an individual investigation or financial recovery.

Be Alert for Investment Recovery Scams

Consumers who already lost money can become targets of a second fraud.

The SEC’s resources for victims of securities-law violations warn that recovering investment losses is not guaranteed.

Be particularly cautious if someone claims that government or court funds have been recovered but requires an advance payment first.

A legitimate regulator will not need a cryptocurrency seed phrase or account password to send restitution.

SEC Charges 38 Entities: Investor FAQ

Did the SEC charge 38 companies criminally?

No. The SEC filed separate civil enforcement complaints. The August 27 announcement does not report criminal convictions.

Have the 38 entities been found liable?

No. The allegations remain pending in federal court.

Where were the SEC cases filed?

The complaints were filed in the U.S. District Court for the District of Colorado.

What allegedly was false?

The SEC alleges that Forms ADV contained material misrepresentations or information that could not be substantiated, including disputed business addresses, telephone information, ownership data and claims regarding audited private-fund financial statements.

Does an ERA filing mean a company is SEC-registered?

No. The SEC’s investor alert expressly states that an exempt reporting adviser is not registered with the SEC.

Did the SEC remove the disputed filings?

Yes. The SEC says the ERA filings of the 38 charged entities were removed from the Commission website.

Is there an investor refund program?

No restitution fund, claim portal, payment schedule or public claims deadline has been announced in these cases.

Bottom Line

The SEC charges 38 entities in separate civil enforcement actions alleging they used materially false or unsupported Form ADV filings to appear legitimate to U.S. investors.

The cases illustrate why a public regulatory filing, CRD number or professional-looking certificate should not be treated as proof that the SEC has approved an investment firm.

The complaints remain allegations, and no investor compensation program has been established.

Investors who dealt with one of the named entities should preserve records, stop questionable additional transfers, independently verify regulatory status and report suspected securities fraud through official SEC channels.