SEC sues 38 entities over fake adviser filings The

SEC sues 38 entities over fake adviser filings The U.S. Securities and Exchange Commission sued 38 entities on Aug. 27, alleging they submitted false Forms ADV between 2025 and 2026 to present themselves as legitimate investment advisers. The SEC filed 38 separate civil complaints in the U.S. District Court for the District of Colorado. The regulator alleges that several defendants likely operated overseas and used official public filings to gain credibility with U.S. retail investors. The allegations have not been proven in court. The SEC did not report how much investors transferred to the entities, identify confirmed victims or disclose total losses.Today, the SEC charged 38 entities alleging that they feigned legitimacy as U.S. advisers through false filings to lure retail investors. Read more below SEC complaints identify repeated filing patterns The complaints allege that defendants listed Colorado business addresses where they had no physical presence. Some supplied disconnected telephone numbers or numbers belonging to unrelated businesses. Many filings contained identical or nearly identical information. According to one complaint, purported funds commonly reported either $78.96 million or $48.96 million in assets, 89 or 33 investors and minimum investments of either $50,000 or $5,000. The entities also listed matching ownership structures. Those structures reportedly attributed 10% ownership to the adviser or related parties, 90% to foreign investors and 50% to funds of funds. The categories could overlap.The SEC said several filings claimed that private-fund financial statements had been reviewed by one of two independent accounting firms. Investigators could not find either auditor in federal or state accountancy registries.