SEC Charges Six Firms Over False Statements in Investment Adviser Filings

The U.S. Securities and Exchange Commission (SEC) has filed charges against six entities — Bluesky Eagle Capital Management Ltd., Supreme Power Capital Management Ltd., AI Financial Education Foundation Ltd., AI Investment Education Foundation Ltd., Invesco Alpha Inc., and Adamant Stone Limited — for allegedly making false and unsubstantiated statements in mandatory registration documents.

The SEC complaints, lodged in federal courts in New York and Colorado, accuse the firms of misrepresenting their office locations, assets under management, client relationships, and corporate status in Form ADV filings submitted in 2023 and 2024. Form ADV is required for investment advisers registering with the SEC and state securities authorities.

The SEC’s allegations are as follows:

• Inflated assets: Bluesky Eagle, Supreme Power, AI Financial, and Adamant Stone each claimed to manage $10 million in U.S. assets; Invesco Alpha claimed $5 million; AI Investment claimed $1 million.
• False private fund claims: Each asserted they advised private funds supposedly reported by another registered adviser, but no such filings exist.
• False office locations: Bluesky Eagle and Supreme Power claimed New York offices; the other four claimed Denver offices. Current tenants at those addresses confirmed no knowledge of the firms.
• Public company misrepresentation: Bluesky Eagle and Supreme Power claimed to be public companies, yet no records exist in the SEC’s public company database.
• Failure to cooperate: All six firms allegedly ignored SEC requests to provide records substantiating the information on their Forms ADV.

The SEC is seeking injunctive relief and civil penalties. The investigation remains ongoing.