SEC Cracks Down on Invesco Impersonator, Bogus Fund Shops
The Securities and Exchange Commission has filed civil complaints against half a dozen entities claiming to be investment advisors in Form ADV filings – including one seemingly masquerading as global asset manager Invesco – which included false information or details the agency could not substantiate, court filings show.
The filings were part of an alleged “ramp-and-dump” scheme that involved filing false and deceptive investment advisor forms with the SEC to bilk investors out of hundreds of millions of dollars, according to the U.S. Department of Justice.
The firms – which go by the names Invesco Alpha, Bluesky Eagle Capital Management, Supreme Power Capital Management, AI Financial Education Foundation, AI Investment Education Foundation and Adamant Stone Limited – all filed as exempt reporting advisers that reported $10 million or less in assets in their Form ADVs filed between 2023 and 2024, the SEC said in a statement Monday.
While each of the six firms was charged individually, the cases also appear to be related in numerous ways, said Lori Weston, head of compliance advisory at STP Investment Services.
Some of the firms shared the same addresses and CEOs, and five list the same officer. Most notably, all six named the same third-party investment advisor – Beijing-based Broad Investment Securities – as the separate RIA that reports information about their private funds.
“The SEC acknowledges that it has not found reporting of any of these private funds on [Broad Investment Services’] filings,” she said. “In fact, nowhere on its Form ADV or on its website does Broad claim to advise private funds at all. It also does not claim to use, manage assets for, or have any affiliation with other investment advisers.”
Read more from Lori and other experts in FundFire.
