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Matthias Knab, Opalesque: The U.S. Securities and Exchange Commission has charged New York-based investment adviser SQN Capital Management LLC and its President, CEO, Chief Compliance Officer and majority owner, Jeremiah Silkowski, with multiple violations of the antifraud and other provisions of the Investment Advisers Act of 1940. The SEC describes the violations as recidivist. The defendants agreed to settle, and on 8 October 2026 the U.S. District Court for the Southern District of New York entered consent judgments imposing permanent injunctions and other sanctions. The court also appointed a receiver for the investment funds managed by SQN Capital.
Unaudited funds and unchanged NAVs
The SEC's complaint, filed on 18 September 2026, alleges that from at least 2019 through 2025, Silkowski and SQN Capital repeatedly breached their fiduciary duties to four investment funds they managed. They failed to comply with the funds' governing documents and inflated the funds' net asset values. According to the complaint, they did not engage an accounting firm to audit the funds' annual financial statements, and did not even prepare unaudited annual statements conforming to GAAP, as the governing documents required.
The only asset valuations prepared for the funds during this period were prepared by Silkowski alone, the SEC alleges, and not by an independent valuation expert as he had represented to investors. According to the compla...................... To view our full article Click here
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