SEC Warns Fake Adviser Filings Are Being Used to Make Investment Scams Look Real

The SEC says scammers are misusing exempt reporting adviser filings to appear credible. Here is what investors should know before trusting a filing or paying fees.

Money · September 16, 2026

The Securities and Exchange Commission’s investor education office is warning that fraudsters are using exempt reporting adviser filings, known as ERA filings, to give investment pitches a false air of legitimacy.

The warning is national in scope. No Schaumburg- or Illinois-specific ERA filing scam was identified in the verified source material, but the tactic can affect investors anywhere, including in the Chicago suburbs, because many investment solicitations now begin online, by email, through messaging apps, or through social media.

What happened

Investor.gov, the SEC’s investor education website, says scammers may point to an ERA filing as if it proves they are a trustworthy investment adviser. The SEC also announced enforcement action involving 38 entities that, according to the agency, used false filings to appear to be U.S. advisers and attract retail investors.

The SEC alert specifically warns that these filings may be used in investment scams, including advance-fee fraud. In that type of scheme, a person is asked to pay money up front, often described as a tax, processing charge, insurance cost, release fee, or account requirement, before receiving promised investment proceeds. The promised benefit may never arrive.

Why an ERA filing can be misleading

An exempt reporting adviser is not the same thing as a fully registered investment adviser. ERAs are advisers that qualify for an exemption from SEC registration but still must submit certain reports through the Form ADV and IARD system. Those filings can contain useful information, but the existence of a filing does not mean the SEC has approved the adviser, endorsed an investment, verified performance claims, or guaranteed that investor money is safe.

That distinction matters because fraudsters often exploit official-looking records. A scammer may show a real or fake filing number, a Form ADV entry, a professional-looking website, or a name that resembles a legitimate firm. The goal is to make a prospective investor stop asking basic verification questions.

What readers can check

Before relying on any investment professional’s claims, investors can use Investor.gov’s tools to look up registration and disciplinary information. Readers can compare the person’s name, firm name, address, website, phone number, and email domain against official records. Inconsistencies are a reason to slow down and investigate further.

Useful questions include: Is this person registered or only listed as an exempt reporting adviser? Does the firm’s contact information match the official filing? Who will hold the assets? Are fees, risks, and withdrawal terms provided in writing? Is the person pressuring for quick action? Is payment requested by wire transfer, cryptocurrency, gift card, or another hard-to-reverse method? Are up-front fees required before supposed profits can be released?

Common warning signs

Investors should be cautious when a pitch promises unusually high or steady returns, claims there is little or no risk, refuses to provide clear written documents, discourages independent verification, or says an official filing alone proves legitimacy. A filing is a starting point for due diligence, not the end of it.

Fees also deserve close attention. Legitimate investment arrangements should clearly explain management fees, performance-based fees if applicable, custody arrangements, account expenses, withdrawal limits, and conflicts of interest. Vague fee explanations or surprise charges tied to withdrawing money can be a red flag.

Main uncertainty

The SEC’s alert describes a scam tactic rather than a single local incident. Scammers may change names, websites, filings, and contact methods quickly. Because of that, investors should verify information using current official sources rather than relying on screenshots, forwarded documents, or links supplied by the person making the pitch.

This article is for general educational purposes only and is not personalized financial, investment, tax, credit, or legal advice. Investors with questions about a specific situation can consult qualified professionals and report suspected fraud to the SEC or other appropriate regulators.

Sources

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