The U.S. Securities and Exchange Commission has filed 38 separate civil complaints in the U.S. District Court for the District of Colorado, alleging that the defendants submitted false Forms ADV between 2025 and 2026 to masquerade as legitimate investment advisers and target retail investors nationwide.
According to the SEC, several defendants appeared to operate from foreign jurisdictions, using IP addresses traced abroad. The complaints describe false Colorado business addresses, disconnected phone numbers, and auditors that could not be found in state or federal accountancy registries. Many filings contained nearly identical information, with purported funds commonly reporting either $78.96 million or $48.96 million in assets, 89 or 33 investors, and minimum investments of $50,000 or $5,000.
The regulator said the defendants exploited the exempt reporting adviser process, under which Form ADV submissions become publicly searchable without SEC approval. Some related websites displayed certificates falsely claiming “SEC RIA permission,” using genuine filing and registration numbers. Several entities used crypto-related names such as CryptoOrbit, Pinnacle Crypto Exchange, Web3 University, Axivon Exchange and Future Finance Academy, though the SEC did not characterize every defendant as a crypto business.
The SEC seeks permanent injunctions, civil monetary penalties and filing bans, and directed FINRA to remove the 38 filings from the Investment Adviser Public Disclosure database. The FBI assisted through Operation Level Up, which identifies and contacts potential victims of investment fraud. The regulator cautioned investors not to treat a Form ADV appearance as proof of SEC registration and to avoid transferring money, cryptocurrency or personal information when an exempt reporting adviser approaches individual investors directly.
The allegations have not been proven in court, and the SEC has not disclosed confirmed victims, total losses or how much investors transferred to the entities.
