The SEC Charges 38 Entities for Impersonating U.S. Investment Advisers through False Filings

BlockBeats News, August 28th, the U.S. Securities and Exchange Commission (SEC) announced lawsuits against 38 entities, accusing them of making material false statements in Form ADV filings submitted between 2025 and 2026, attempting to masquerade as legitimate U.S. investment advisory firms to gain retail investors' trust and carry out inducement.

The SEC stated that these entities are suspected of providing fictitious business addresses, offering invalid or unrelated company-affiliated phone numbers, and using highly similar ownership structures and financial data. Some entities also claim that the hedge funds they manage have been audited by accounting firms, but the relevant accounting firms are not found in the U.S. federal or state-level public accounting firm directories.

In addition, some entities also displayed forged SEC registration certificates on their websites to create a regulated facade. The SEC stated that some of the entities involved accessed the SEC filing system from overseas IP addresses and refused to provide relevant records to prove the authenticity of the filings. Currently, the ERA filings of the 38 implicated entities have been removed from the SEC's website. The SEC has charged these entities with violating the provisions of the Investment Advisers Act of 1940 and is seeking permanent injunctions, prohibiting them from continuing to submit Form ADV as exempt reporting advisers, and imposing civil penalties.