SEC Warns Investors About ERA Form ADV Filing Scams

The Securities and Exchange Commission has filed enforcement actions against 38 entities that allegedly made material misrepresentations in Forms ADV to falsely portray themselves as legitimate advisory firms to U.S. investors.

The SEC also issued an investor alert warning that scammers may use exempt reporting adviser (“ERA”) filings to create a false impression that they are SEC-registered, approved, or otherwise legitimate.

The Key Point for Investors: An ERA Filing Is Not SEC Registration

An ERA is an investment adviser that is not registered with the SEC. ERAs are subject to certain SEC reporting obligations and are required to report some information on Form ADV. That filing obligation does not make an ERA an SEC-registered investment adviser.

The SEC’s Investor Alert states: “An ERA is not registered with the SEC.” It further explains that an ERA can provide investment advice only to private funds, such as hedge funds, venture capital funds, and private equity funds, and legally cannot provide investment advice directly to an individual investor.

How the Form ADV and ERA Issues Are Connected

The SEC’s enforcement actions and its investor warning address the same alleged scheme. ERAs report certain information to the SEC on Form ADV. According to the SEC, the 38 defendants purported to be ERAs and allegedly used Form ADV filings containing material misrepresentations or information that could not be substantiated. The SEC alleges that the filings helped the entities falsely portray themselves as legitimate advisory firms.

The SEC Litigation Release No. 26622 states that the Commission charged 38 entities over alleged material misrepresentations in Forms ADV filed between 2025 and 2026. The SEC alleges, among other things, that defendants listed Colorado business addresses where they had no presence and provided disconnected telephone numbers or numbers belonging to unrelated businesses.

Fake SEC Registration Claims and Certificates

The SEC further alleges that certain defendants were marketed on websites displaying fake certificates indicating that the entities were registered with the SEC even though they were not. According to the Investor Alert, some alleged fake certificates included CRD and SEC file numbers assigned when the entity filed its Form ADV and falsely stated that “SEC RIA permission” had been granted.

Investor.gov warns: “Do not trust any individual or firm that claims to be an ERA and directs you to a filing or website as evidence of SEC registration.”

What Investors Should Watch For

• A person or firm claiming to be an ERA offers investment advice directly to you as an individual investor.
• A person or firm claims that its Form ADV or ERA filing means it is registered with, approved by, or endorsed by the SEC.
• A website or representative displays an SEC “certificate” as evidence that an adviser is SEC-registered or legitimate.
• You are directed to a CRD number, SEC file number, Form ADV, or SEC website as supposed proof that the SEC has vetted or approved the adviser.
• You are asked to send money, transfer crypto assets, or provide personal information based on claims of SEC registration or approval.

The SEC’s Enforcement Actions

The SEC’s complaints, filed in the U.S. District Court for the District of Colorado, charge the 38 defendants with violations of Sections 204(a) and 207 of the Investment Advisers Act of 1940. The SEC seeks permanent injunctions, conduct-based injunctions prohibiting the defendants from filing Forms ADV as exempt reporting advisers, and civil penalties. The Forms ADV for the 38 entities have been removed from the SEC’s Investment Adviser Public Disclosure website. The allegations have not been proven.

SEC Sources

SEC Litigation Release No. 26622 – False Forms ADV Filings (August 27, 2026)

Investor.gov – Scammers Using SEC Exempt Reporting Adviser (ERA) Filings to Look Legitimate – Investor Alert (August 27, 2026)

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally-recognized, plaintiff-side class action law firm representing investors and consumers in matters involving securities fraud, corporate misconduct, mergers and acquisitions, antitrust violations, whistleblower claims, data breaches, consumer fraud, employment law violations, and retirement-plan mismanagement. Its attorneys have served as lead or co-lead counsel in major securities cases, recovering more than $10 billion for institutional and individual investors.

All representation is provided on a contingency-fee basis, and plaintiffs are not responsible for attorneys’ fees, court costs, or litigation expenses. Any request for attorneys’ fees and expenses will be subject to court approval. 

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