SEC Settles Adviser Fraud Case Against SQN Capital and Jeremiah Silkowski
SEC settles Advisers Act charges against SQN Capital and Jeremiah Silkowski, securing a receiver, permanent injunctions and a $200,000 penalty in court.
Summary
The SEC sued New York investment adviser SQN Capital Management LLC and Jeremiah Silkowski, its president, CEO, chief compliance officer and majority owner, on September 18, 2026. The case, SEC v. Jeremiah Silkowski and SQN Capital Management LLC, No. 1:26-civ-08162, was filed in the Southern District of New York. On October 8, the court entered consent judgments and appointed a receiver for SQN Capital’s funds; the SEC announced the outcome October 9 in Litigation Release No. 26671.
The complaint alleges that from at least 2019 through 2025, the defendants breached duties to four funds by disregarding governing documents and inflating net asset values. SQN Capital allegedly obtained neither required annual audits nor GAAP-compliant unaudited statements. Silkowski allegedly performed the only valuations while telling investors an independent expert did so, materially overstating values and leaving NAVs unchanged despite projected cash flows, deteriorating markets, actual asset performance and assets no longer held. He also allegedly made baseless assurances that liquidation was near, concealing unfavorable markets and insufficient resources as deadlines passed and investors remained unable to access funds.
The SEC previously charged SQN Capital in settled 2020 and 2023 proceedings over Rules 206(4)-2 and 206(4)-7; Silkowski was charged in 2023 with aiding and abetting. The new complaint charges both defendants under Advisers Act Sections 206(1) and 206(2), SQN Capital under Section 206(4) and the custody and compliance rules, and Silkowski with aiding and abetting. Without admitting the allegations, defendants accepted permanent injunctions and a receiver to liquidate fund assets and distribute net proceeds. Silkowski must pay $200,000 and is permanently barred from investment adviser, broker or dealer roles, except assistance the receiver deems necessary.
Positives
- October 8 consent judgments appointed a receiver to liquidate SQN Capital’s fund assets and distribute net proceeds to investors.
- Permanent injunctions prohibit SQN Capital and Silkowski from committing or aiding future violations of the charged Advisers Act provisions.
- Silkowski must pay a $200,000 civil penalty and is permanently barred from most investment adviser, broker and dealer roles.
Risks & concerns
- 2019 to 2025 conduct allegedly inflated net asset values across four SQN Capital investment funds.
- Required annual audits and GAAP-compliant unaudited financial statements were allegedly never produced for the funds.
- Silkowski allegedly performed valuations himself while representing that an independent valuation expert had prepared them.
- Fund NAVs allegedly remained unchanged despite deteriorating markets, changing cash flows, asset performance and assets no longer being held.
- Investors allegedly remained unable to access funds after liquidation periods expired amid poor market conditions and inadequate firm resources.
- Prior 2020 and 2023 SEC proceedings involving custody and compliance rules establish SQN Capital’s alleged recidivist history.