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SEC Filed Lawsuit Against SQN Capital Management

The SEC alleges that Jeremiah Silkowski and his firm misled investors by overstating asset values for four funds.

Updated on Sept. 21, 2026 in Financial Crime

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The Securities and Exchange Commission has filed a lawsuit against SQN Capital Management and its president, Jeremiah Silkowski, alleging systemic investment fraud. AI Illustration. Upload story photo >

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The Securities and Exchange Commission filed a lawsuit against SQN Capital Management LLC and its leader, Jeremiah Silkowski, alleging systemic fraud. Regulators claim the defendants failed to provide audited financial statements and disseminated inflated asset values to investors.

Why it matters

The case underscores the regulatory focus on ensuring investment advisers uphold their fiduciary duties and provide accurate financial reporting to clients. The move seeks to halt alleged ongoing misconduct through the appointment of a court receiver.

The SEC filed its complaint in the New York Southern District Court on September 18, 2026. The regulator is currently seeking a court-appointed receiver to liquidate assets for the four investment funds managed by the firm.

The players

Jeremiah Silkowski

He served as the president, CEO, and CCO of SQN Capital Management LLC and is accused of acting as the sole preparer of fund valuations.

SQN Capital Management LLC

This investment management firm is the subject of an SEC lawsuit alleging that it failed to produce audited financial statements for four funds.

Securities and Exchange Commission

This federal regulatory agency is responsible for protecting investors and maintaining fair, orderly, and efficient financial markets.

The details

The SEC alleges that Jeremiah Silkowski, who served as the firm's president, CEO, and CCO, acted as the sole preparer of asset valuations for the funds between 2019 and 2025. Regulators contend that Silkowski breached fiduciary duties and violated antifraud provisions of the Investment Advisers Act of 1940.

Timeline

  1. The alleged conduct occurred between 2019 and 2025.

  2. SQN Capital previously faced SEC charges in 2020.

  3. The firm was also charged by the SEC in 2023.

  4. The SEC filed its recent complaint on September 18, 2026.

Legal Context

The current lawsuit follows a pattern of regulatory enforcement under the Investment Advisers Act of 1940 to address breaches of fiduciary duty. These legal actions highlight a recurring trend of the SEC targeting firms that fail to provide transparency in asset reporting.

Investors who had holdings in the four impacted funds may experience significant delays or losses during the court-mandated liquidation process. The SEC is also seeking a permanent ban to prevent the defendant from ever serving as an investment adviser again.

The takeaway

Investors should always verify that their asset managers provide independent, audited financial statements to prevent the misuse of net asset valuations. Maintaining clear oversight of fund documentation is a critical step in protecting capital from potential mismanagement.

Further reading

For more on how the government monitors market participants, visit the Financial Crime section.

Source note: This article includes information reported by FX News Group.

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Do you trust that your own financial managers are being transparent about your investment valuations?