SEC sues 38 entities over fake adviser filings

The U.S. Securities and Exchange Commission filed civil complaints against 38 entities for allegedly submitting false Forms ADV to pose as legitimate investment advisers targeting retail investors. The allegations include fake addresses, disconnected phone numbers, and missing auditors, with the SEC seeking injunctions, filing bans, and penalties. The defendants may have operated overseas and used official filings to gain credibility with U.S. retail investors. The complaints allege repeated filing patterns and matching ownership structures, with some entities falsely claiming to have received SEC permission. The SEC also raised concerns about foreign access and missing records, with courts to decide penalties and filing restrictions. Investors are warned to independently verify a firm’s status to avoid potential scams.