SEC Targets 38 Entities Over Fraudulent Investment Adviser Filings

The SEC filed 38 separate civil complaints in the U.S. District Court for the District of Colorado on August 27. According to the regulator, these entities submitted false Forms ADV between 2025 and 2026, claiming to be exempt reporting advisers. While these firms are permitted to manage private funds, they are strictly prohibited from soliciting individual retail investors. Investigators found that many of the filings were nearly identical, often reporting specific asset figures like $78.96 million and citing non-existent accounting firms that do not appear in any federal or state registries.

The scheme relied on creating a veneer of official approval to deceive the public. Some defendants displayed counterfeit certificates claiming "SEC RIA permission," using legitimate-looking registration numbers to lure victims. Several entities, including names like CryptoOrbit, Pinnacle Crypto Exchange, and Web3 University, operated with disconnected phone numbers and fake Colorado addresses. When SEC staff attempted to verify operations, they found the entities unreachable or discovered that records demands were returned as undeliverable. The commission, working with the FBI under Operation Level Up, has removed the fraudulent filings from its database and is now seeking permanent injunctions and civil penalties to prevent further misconduct.