The Securities and Exchange Commission (SEC) has filed a lawsuit against Jeremiah Silkowski and SQN Capital Management LLC.

The SEC’s complaint, filed with the New York Southern District Court on September 18, 2026, alleges a long-running series of violations of antifraud and other provisions of the Investment Advisers Act of 1940 by defendants SQN Capital, a registered investment adviser, and Silkowski, its President, CEO and CCO.

According to the complaint, from at least 2019 through 2025 (the “Relevant Period”), Silkowski and SQN Capital repeatedly breached their fiduciary duties to four investment funds they managed—SQN Alternative Investment Fund III L.P., Alternative Investment Fund IV L.P., SQN Portfolio Acquisition Company LLC and SQN Special Opportunity Fund, LLC — by failing to comply with governing fund documents and overstating the Funds’ net asset values.

Among other things, Silkowski and SQN Capital failed for years to engage an accounting firm to conduct audits of the Funds’ annual financial statements or even to prepare unaudited annual financial statements that conformed to Generally Accepted Accounting Principles (GAAP), as required by the Funds’ governing documents.

In addition, the only asset valuations prepared for the Funds during the Relevant Period were prepared by Silkowski alone and not, as he represented to Fund investors, by a third-party valuation consultant, and Silkowski materially overstated those values.

Rather than taking reasonable steps to apply fair value principles, as required by the Funds’ governing documents, Silkowski kept the net asset values unchanged for years—regardless of changes in projected cash flows, deteriorating market conditions, the actual performance of the assets, or even whether a given asset was still held.

Silkowski also repeatedly misled the Funds’ investors about the status of SQN Capital’s efforts to liquidate fund assets in accordance with the Funds’ governing documents. He repeatedly claimed, without a reasonable basis, that the liquidation process would soon be completed, without disclosing that market conditions prevented SQN Capital from selling the Funds’ assets at the inflated values he had disseminated, and that SQN Capital lacked the resources to complete the liquidation process.

That process has extended well past the liquidation periods prescribed by fund governing documents and has left investors indefinitely in limbo, without access to their funds.

Silkowski also made baseless statements to investors that SQN Capital was on the verge of completing asset sales that would facilitate the Funds’ liquidation and result in imminent distributions to investors. He knew that his efforts to sell the fund portfolios to prospective buyers had never resulted in any sales contracts, letters of intent, or even term sheets, yet for years he continued to falsely tell investors that such sales were imminent and that the liquidation process would soon be completed.

At the same time, Silkowski disseminated the inflated net asset valuations to investors, thereby concealing the decline in the value of their investments.

SQN Capital and Silkowski are also recidivists. The Commission has twice before charged SQN Capital, in settled administrative proceedings, with violating Advisers Act Rule 206(4)-2 [17 C.F.R. § 275.206(4)-2], known as the custody rule, and Advisers Act Rule 206(4)-7 [17 C.F.R. § 275.206(4)-7], known as the compliance rule, first in 2020 and again in 2023.

Both actions arose from SQN Capital’s failure to deliver audited financial statements to its fund investors. Silkowski was charged in the second proceeding with aiding and abetting and causing those violations.

Despite having twice been ordered by the Commission to cease-and-desist from further such violations and to pay significant monetary penalties, SQN Capital has continued to violate the Custody Rule and Compliance Rule, aided and abetted by Silkowski.

The SEC accuses SQN Capital of violations of Sections 206(1), 206(2) and 206(4) of the Advisers Act [15 U.S.C. §§ 80b-6(1), (2), and (4)] and Rules 206(4)-2 and 206(4)-7 thereunder [17 C.F.R. § 275.206(4)-2 and 7].

The regulator accuses Silkowski of violations of Advisers Act Sections 206(1) and 206(2) [15 U.S.C. §§ 80b-6(1) and (2)] and aiding and abetting SQN Capital’s violations of Advisers Act Section 206(4) and Rules 206(4)-2 and 206(4)-7 thereunder [17 C.F.R. § 275.206(4)-2 and 7].

The Commission seeks a final judgment: (a) permanently enjoining the defendants from violating the federal securities laws and rules this Complaint alleges they have violated; (b) ordering Silkowski to pay civil money penalties pursuant to Advisers Act Section 209(e) [15 U.S.C. § 80b-9(e)]; (c) appointing a receiver to liquidate the assets of the Funds managed by SQN Capital and to distribute the proceeds to investors; (d) permanently prohibiting Silkowski from acting as or associating with an investment adviser, broker or dealer, except to the extent that the Court-appointed receiver deems it necessary for Silkowski to assist such receiver with the orderly liquidation of the Funds and to otherwise cooperate with such receiver in the discharge of the receiver’s Court-ordered responsibilities; and (e) ordering any other and further relief the Court may deem just and proper.