The U.S. Securities and Exchange Commission has filed lawsuits against 38 entities over allegedly false Form ADV submissions made between 2025 and 2026, accusing them of masquerading as legitimate, registered investment advisers to gain retail investors' trust. According to the SEC, the firms fabricated office addresses, listed invalid or unrelated phone numbers, and adopted highly similar ownership structures and financial data across filings. Some claimed that their private funds had been audited by accounting firms that the agency could not verify in federal or state directories. Others posted counterfeit SEC registration certificates on their websites. The SEC also noted that certain entities accessed the filing system from offshore IP addresses and refused to supply records to back up their submissions. All 38 firms' ERA filings have been removed from the SEC website. The commission says the conduct violates the Investment Advisers Act of 1940 and is seeking permanent injunctions, prohibitions on future Form ADV submissions as exempt reporting advisers, and civil monetary penalties.
BlockBeats reports that on August 28, the U.S. Securities and Exchange Commission (SEC) announced lawsuits against 38 entities, accusing them of making materially false statements in Form ADV filings submitted between 2025 and 2026. The firms allegedly tried to pass themselves off as legitimate U.S. investment advisers to win retail investors' trust and lure them in.
Fraudulent Filing Details
According to the SEC, the entities fabricated office addresses, provided invalid phone numbers or numbers linked to unrelated businesses, and used highly similar ownership structures and financial data across their filings. Some claimed their private funds had been audited by accounting firms that could not be located in federal or state public accounting directories.
Others displayed counterfeit SEC registration certificates on their websites to create a false impression of regulatory oversight. The agency also said a number of the entities accessed the SEC filing system from IP addresses based outside the U.S. and refused to hand over records that could verify the information they submitted. The SEC has since removed the ERA filings of all 38 entities from its website.
Enforcement Action
The SEC charged the entities with violating the Investment Advisers Act of 1940 and is seeking permanent injunctions, orders barring them from filing Form ADV as exempt reporting advisers, and civil monetary penalties.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
