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Final Judgment - Supreme Power Capital Management Ltd. Misrepresentation

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Summary

The SEC obtained a final judgment by default against investment adviser Supreme Power Capital Management Ltd. on April 20, 2026, in the Southern District of New York. The firm was charged with making material misrepresentations in its December 2023 Form ADV filing, including falsely claiming Exempt Reporting Adviser status, managing $10 million in U.S. assets, and operating from New York office space that the landlord had no knowledge of. The judgment permanently enjoins the firm from violations of Sections 204(a) and 207 of the Investment Advisers Act and bars it from filing as an Exempt Reporting Adviser, and orders payment of a $1,182,254 civil penalty.

“The final judgment permanently enjoins Supreme Power from future violations of Sections 204(a) and 207 of the Investment Advisers Act of 1940, and permanently enjoins Supreme Power, its owners, and its executive officers from filing a Form ADV as an Exempt Reporting Adviser.”

SEC , verbatim from source
Why this matters

Registered investment advisers and Exempt Reporting Advisers filing Form ADV should audit the accuracy of their disclosures, particularly claims about assets under management, physical office presence, and relationships with affiliated RIAs. The SEC obtained a default judgment here in part because Supreme Power failed to respond to Commission requests for supporting records — a failure that compounded the initial misrepresentation.

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GovPing monitors SEC Litigation Releases for new banking & finance regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 6 changes logged to date.

What changed

The final judgment permanently enjoins Supreme Power Capital Management Ltd. from future violations of Sections 204(a) and 207 of the Investment Advisers Act of 1940 and bars the firm, its owners, and executive officers from filing a Form ADV as an Exempt Reporting Adviser. The judgment also orders the firm to pay a civil penalty of $1,182,254.\n\nInvestment advisers and Exempt Reporting Advisers filing Form ADV should review the accuracy of their representations, particularly regarding asset management claims, office locations, and relationships with affiliated registered investment advisers. The SEC demonstrated willingness to pursue enforcement and obtain default judgments where firms fail to respond to Commission requests for records to substantiate ADV information.

Penalties

$1,182,254 civil penalty

Archived snapshot

Apr 24, 2026

GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.

Supreme Power Capital Management Ltd.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26535 / April 23, 2026

Securities and Exchange Commission v. Supreme Power Capital Management Ltd., No. 1:25-cv-09505-AKH (S.D.N.Y. filed Nov. 13, 2025)

SEC Obtains Final Judgment against Investment Adviser Charged with Making Misrepresentations in SEC Filing

On April 20, 2026, the U.S. District Court for the Southern District of New York entered a final judgment by default against purported investment adviser Supreme Power Capital Management Ltd. in connection with previously filed charges for making material misrepresentations and unsubstantiated statements in a form filed with the SEC.

The SEC’s complaint, filed on November 13, 2025, alleged that in its December 2023 Form ADV, Supreme Power represented that it is an Exempt Reporting Adviser (a category of private fund advisers that are not required to register with the SEC); that it is a public company operating from office space in New York City; that it manages $10 million in assets in the United States; that it advises a private fund; and that a separate registered investment adviser (RIA) reports information about the private fund on its own Form ADV. Contrary to Supreme Power's representations, the complaint alleged that the real estate manager of the New York office space had no knowledge of Supreme Power or its purported Chief Executive Officer and Chief Operating Officer, and the separate RIA had not reported information about the purported private fund. The complaint also alleged that the Commission had not found any reporting of information about the private fund on other filings with the SEC, and that a search of the Commission's public company database yielded no information on Supreme Power. Additionally, the SEC alleged that Supreme Power failed to respond to a request by Commission attorneys to provide records to substantiate the information on its Form ADV.

The final judgment permanently enjoins Supreme Power from future violations of Sections 204(a) and 207 of the Investment Advisers Act of 1940, and permanently enjoins Supreme Power, its owners, and its executive officers from filing a Form ADV as an Exempt Reporting Adviser. In addition, the judgment orders Supreme Power to pay a civil penalty of $1,182,254.

The SEC's litigation was conducted by Alexandra Lavin, Xinyue Angela Lin, David London, Sarah McAteer, Ryan Murphy, Michele Perillo, and Dahlia Rin of the SEC's Boston Regional Office. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.

Resources

Named provisions

Sections 204(a) and 207 of the Investment Advisers Act of 1940

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Last updated

Classification

Agency
SEC
Filed
April 23rd, 2026
Instrument
Enforcement
Branch
Executive
Legal weight
Binding
Stage
Final
Change scope
Substantive
Document ID
Litigation Release No. 26535
Docket
1:25-cv-09505-AKH

Who this affects

Applies to
Investment advisers Financial advisers Public companies
Industry sector
5231 Securities & Investments
Activity scope
Investment adviser registration Form ADV filing SEC enforcement
Geographic scope
United States US

Taxonomy

Primary area
Securities
Operational domain
Compliance
Compliance frameworks
SOX
Topics
Corporate Governance Anti-Money Laundering

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