- On March 31, 2026, the U.S. District Court for the Northern District of Illinois entered judgments against Eliseo Prisno and P/E Capital Investment Management Partners. The SEC’s complaint alleged Prisno and P/E Capital Investment Management Partners were charged with $2.4 million in unauthorized fees for over 200 clients. Without admitting the charges, Prisno and P/E Capital Investment Management Partners consented to permanent injunctions and will pay disgorgement, interest, and civil penalties, with amounts to be determined by the court. Prisno is also banned from acting as an investment adviser. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26515
- On March 26, 2026, the SEC charged Krish Kumar in connection with two investment fund offerings. Kumar raised approximately $7,800,000 from investors through Future Fractal Investments LLC and Arcane Resonance Fund, LLC and misappropriated nearly $7,000,000 by transferring funds to personal accounts he controlled. Kumar also made false statements about investment performance and used investor funds to make unauthorized payments to cover losses in another fund. Kumar consented to a judgment, subject to court approval, that includes permanent injunctions and conduct-based restrictions, with monetary penalties to be determined by the court. This matter is being litigated. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26507
- On March 23, 2026, the SEC settled an administrative proceeding against Ally Invest Advisors Inc., a registered investment adviser involving failures to fully and fairly disclose material facts about the firm’s no-advisory-fee Cash-Enhanced robo-advisor accounts, including the conflict of interest created by maintaining a thirty percent cash allocation. The SEC found that the cash allocation was selected in part to generate financial benefits for Ally Invest’s affiliated broker-dealer and affiliated bank, helping offset revenue lost from not charging an advisory fee. The SEC also found that Ally Invest inaccurately stated that these accounts were managed using Modern Portfolio Theory, when that methodology applied only to the non-cash portion of the accounts. Ally Invest was censured and agreed to notify affected current and former clients of the settlement. Ally Invest was ordered to pay a civil money penalty in the amount of $500,000. https://www.sec.gov/files/litigation/admin/2026/ia-6954.pdf
- On March 23, 2026, the SEC charged Commonwealth Equity Services, LLC d/b/a Commonwealth Financial Network in connection with its failure to disclose conflicts of interest related to revenue sharing arrangements with its clearing firm. Commonwealth failed to disclose that certain mutual fund share classes paid higher revenue sharing despite lower-cost alternatives being available, and that some investments generated no revenue sharing while others included transaction fees. These practices resulted in undisclosed financial incentives and breaches of fiduciary duty to advisory clients. Commonwealth was ordered to pay a civil money penalty in the amount of $5,000,000. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26508
- On March 10, 2026, the SEC charged Stuart Frost in connection with violations involving five private venture capital funds. Frost defrauded the funds and their investors of over $14,000,000 by charging undisclosed and excessive incubator fees to start-up companies in which the funds invested, breaching his fiduciary duties. Frost consented to a final judgment permanently enjoining him from further misconduct. Frost was ordered to pay a civil money penalty in the amount of $150,000. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26505 and https://www.sec.gov/files/litigation/admin/2026/ia-6953.pdf
- On March 18, 2026, the United States District Court for the District of New Jersey entered a final judgment against Kenneth Welsh, a former registered representative and investment adviser representative, in the SEC’s civil enforcement action. The SEC’s complaint, filed on October 28, 2021, that from January 2016 to January 2021, Welsh misappropriated at least $2,860,000 from multiple clients and customers. He transferred funds to credit card accounts held in his wife’s and parents’ names and fraudulently caused checks to be drawn on clients’ accounts. Welsh used the stolen funds for personal purchases, including luxury goods, gold coins, and precious metals. The final judgment orders Welsh liable for disgorgement in the amount of $1,998,120, plus prejudgment interest thereon of $467,175, the payment of which is deemed satisfied by the restitution order in the amount of $3,763,1367 entered against him in the parallel criminal case. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26503
- On March 10, 2026, the SEC published a notice of proposed plan of distribution in the matter against Rimar Capital USA, Inc., Rimar Capital, LLC, Itai Liptz, and Clifford Boro for engaging in fraudulent conduct in connection with the offering of Simple Agreements for Future Equity in Rimar USA and made false and misleading statements about Rimar Capital, LLC, including misrepresentations about the platform’s features, assets under management, performance, and supposed artificial intelligence-powered application. The SEC also found that Liptz improperly used some of the offering proceeds for personal purposes. The proposed plan provides for distribution of the Net Available Fair Fund, consisting of $310,000 in civil money penalties plus accrued interest, to investors based on their out-of-pocket losses on Rimar USA SAFEs purchased between May 1, 2022 and April 30, 2023. Interested persons may obtain the proposed plan from the SEC’s Fair Fund page and submit comments within 30 days of the notice. https://www.sec.gov/files/litigation/admin/2026/34-104963.pdf
- On March 6, 2026, the SEC instituted administrative proceedings against EisnerAmper LLP. The SEC found that EisnerAmper failed to properly audit the 2020 financial statements of the Infinity Q Diversified Alpha Fund by not obtaining a sufficient understanding of internal controls over valuation, not obtaining sufficient appropriate audit evidence, and not exercising sufficient due professional care and professional skepticism. The SEC found that EisnerAmper’s audit report incorrectly stated that the audit was conducted in accordance with PCAOB standards, even though the fund’s financial statements contained materially overstated investment values tied to Infinity Q’s mismarking scheme. EisnerAmper was censured, ordered to cease and desist, and required to certify its remedial efforts within 60 days. https://www.sec.gov/files/litigation/admin/2026/34-104936.pdf
- On March 6, 2026, the SEC entered a final judgment against Matthew Werthe, dba HSR Wealth Management, a formerly state-registered investment adviser. The SEC alleged that Werthe engaged in a cherry-picking scheme, making misrepresentations to clients, and violating fiduciary duties. The court ruled in favor of the SEC, granting summary judgment. Werthe was ordered to pay disgorgement in the amount of $507,996, prejudgment interest of $112,340, and a civil money penalty of $507,996. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26497
- On March 4, 2026, the SEC revoked the registration of Shima Capital Management LLC as an investment adviser for making material misrepresentations to investors. Shima Capital, led by Yida Gao, falsely inflated investment returns for two private funds and one offshore investment entity. When confronted with these figures, Gao and Shima Capital attributed them to “clerical errors.” In a separate civil case, a final judgment was entered on February 24, 2026, permanently enjoining Shima Capital from future violations of securities laws. https://www.sec.gov/files/litigation/admin/2026/ia-6951.pdf
- On March 3, 2026, the SEC barred Carole Liston from associating with any broker, dealer, investment adviser, or other securities professionals due to her fraudulent actions as the founder and CEO of Stock Purse Trading, LLC, and Liston Associates, Inc. Liston raised at least $5.7 million from approximately 200 investors, misappropriating their funds for personal use and Ponzi-like payments. The SEC found that she misrepresented the nature of the investments, falsely stating that funds were fully invested and earning returns, while failing to disclose her misuse of funds. Liston consented to a judgment in September 2025, permanently enjoining her from further violations of securities laws and misrepresentation in investment advising. https://www.sec.gov/files/litigation/admin/2026/ia-6950.pdf
- On March 2, 2026, the SEC appointed Simpluris, Inc. as the Fund Administrator for the Fair Fund established in the case against The Vanguard Group, Inc. Vanguard settled with state regulators and agreed to pay $92.91 million to resolve related actions. The SEC found that Vanguard made misleading statements concerning potential tax consequences to investors in the Vanguard Investor Target Retirement Funds (“Investor TRFs”) in taxable accounts. The SEC created a Fair Fund totaling $146.41 million, which includes Vanguard’s settlement proceeds, disgorgement, and interest. Simpluris is required to obtain a bond of $146.41 million, and its fees and expenses will be paid from the Fair Fund, subject to the approved cost proposal. https://www.sec.gov/files/litigation/admin/2026/34-104916.pdf
- On March 2, 2026, the SEC appointed KCC Class Action Services LLC as the Fund Administrator for the Fair Fund established in the case against North East Asset Management Group, Inc. and Gregory Zandlo. The Fair Fund, totaling $251,640, includes disgorgement, prejudgment interest, and a civil penalty imposed on the Respondents for cherry-picking trades and violating fiduciary duties. KCC is required to obtain a bond of $251,640, and its fees and expenses will be paid from the Fair Fund, as directed by the SEC’s Office of Financial Management. https://www.sec.gov/files/litigation/admin/2026/34-104913.pdf
- On February 27, 2026, the SEC barred Ofer Abarbanel, owner and sole control person of New York Alaska ETF Management LLC, from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization. Abarbanel had previously pled guilty to investment adviser fraud in 2022, in connection with a scheme to defraud investors in the Income Collecting Fund by making false and misleading statements about its investments. He was sentenced to 48 months in prison and ordered to make $106 million in restitution. https://www.sec.gov/files/litigation/ad