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The Securities and Exchange Commission has sued 38 entities accused of filing false information to appear to be legitimate US investment advisers.
The August 27 enforcement sweep targets purported exempt reporting advisers that filed Forms ADV between 2025 and 2026. Several used crypto- and Web3-related names, including CryptoOrbit, Pinnacle Crypto Exchange and Web3 University.
SEC Alleges Fake Addresses and Audit Claims in Forms ADV
The SEC alleges the defendants submitted material misrepresentations and information they could not substantiate when filing as exempt reporting advisers.
Some listed Colorado business addresses where they had no presence and provided telephone numbers that were disconnected or belonged to unrelated companies. Many also reported identical or nearly identical ownership structures and numerical information to other purported advisers.
The filings also claimed private fund financial statements had been audited by one of two independent accounting firms. The SEC said neither firm could be found in public federal or state accountancy registries.
Several defendants accessed the SEC filing system from IP addresses traced to foreign jurisdictions and later failed to provide records requested by enforcement staff.
Fake Certificates Claimed Entities Had SEC RIA Permission
Some defendants were promoted through websites displaying certificates that purported to show SEC registration.
The certificates used legitimate-looking Central Registration Depository and SEC file numbers generated through the Form ADV filing process, while falsely stating that the entities had received “SEC RIA permission.”
Exempt reporting advisers are not SEC-registered investment advisers. The SEC warned investors that filing as an ERA does not mean a firm has been reviewed, approved or registered by the agency.
SEC Removes All 38 Filings From Public Adviser Database
The SEC filed the complaints in federal court in Colorado, alleging violations of Sections 204(a) and 207 of the Investment Advisers Act.
The agency is seeking permanent injunctions, civil penalties and orders preventing the defendants from filing future Forms ADV as exempt reporting advisers. It has also removed all 38 disputed filings from its Investment Adviser Public Disclosure database.
The cases focus on the allegedly false regulatory filings and their use to create an appearance of legitimacy. The SEC does not allege that every defendant completed an investment fraud or quantify investor losses.
