The Securities and Exchange Commission settled charges with New York investment adviser SQN Capital Management LLC and its chief executive Jeremiah Silkowski, a case the agency described as recidivist. Under consent judgments entered October 8, 2026, a court-appointed receiver will liquidate the firm’s funds and distribute net proceeds to investors.
What happened
The SEC filed its complaint on September 18, 2026 in the U.S. District Court for the Southern District of New York, charging SQN Capital and Silkowski with violating the antifraud provisions of the Investment Advisers Act. The agency announced the settlement in Litigation Release No. 26671 on October 9, 2026.
SQN Capital is a registered investment adviser based in New York City. Silkowski served as its president, chief executive officer, chief compliance officer, and majority owner.
According to the complaint, the firm lacked the resources to complete the liquidation of its funds, a process that extended well past the periods prescribed in the funds’ governing documents. The SEC said investors were left in limbo without access to their money.
Key facts in the SQN Capital settlement
| Item | Detail |
|---|---|
| Firm | SQN Capital Management LLC, New York City |
| Executive | Jeremiah Silkowski, president, CEO, CCO, majority owner |
| Case number | No. 1:26-civ-08162 (S.D.N.Y.), filed September 18, 2026 |
| Litigation release | No. 26671, October 9, 2026 |
| Charges | Advisers Act Sections 206(1) and 206(2); custody and compliance rule violations |
| Consent judgments | Entered October 8, 2026 |
| Remedy | Receiver appointed to liquidate the funds and distribute net proceeds |
| Silkowski penalty | $200,000 civil money penalty |
| Industry bar | Permanent, except as needed to assist the receiver |
What the custody rule requires
The case turns on the Advisers Act custody rule, one of the main protections for investors in private funds. An adviser with custody of client assets must satisfy the rule by obtaining an annual surprise examination or, for pooled vehicles, by delivering audited financial statements to investors each year.
The SEC’s complaint said SQN Capital repeatedly failed to deliver audited financial statements to its fund investors. Those statements are often the only independent verification a fund investor receives. Their absence removes the primary check on how a manager handles contributed capital.
A decade of repeat violations
The SEC called SQN Capital a recidivist. The agency first charged the firm in September 2020 for custody and compliance rule violations covering 2012 through 2019. It charged the firm again in September 2023 for the same failures, and that order censured SQN Capital and imposed a $200,000 penalty while finding that Silkowski aided and abetted the violations.
The 2026 complaint alleged the failures continued from at least 2019 through 2025 despite both prior actions.
What the settlement means for SQN investors
The receiver now controls the funds’ assets and will sell them, then distribute net proceeds to investors. The court’s judgment permanently bars Silkowski from acting as or associating with any broker, dealer, or investment adviser, with one exception: he may assist the receiver when the receiver deems it necessary.
What investors recover depends on what the receiver realizes from the funds’ remaining assets. Liquidations of this kind usually stretch over many months, and court notices will set the claim process.
Red flags investors should have caught
- Audited financial statements were never delivered to fund investors, the protection the custody rule exists to force.
- The same failures appeared in three separate SEC actions spanning more than a decade.
- Liquidation deadlines in the funds’ own documents passed without investors being paid.
What investors should do now
Investors in SQN Capital funds should file claims with the receiver, keep every subscription document and statement, and watch for court notices on distribution procedures. Anyone considering a private fund can check the manager’s record in the SEC’s Investment Adviser Public Disclosure database before investing.
How to recover your losses
SQN fund investors may have claims beyond the receivership, including claims against parties that sold or administered the funds. A securities attorney can review subscription agreements, the funds’ governing documents, and the adviser’s regulatory history to identify every available path to recovery.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in investment loss cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
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