SEC and state regulators tighten grip on fraud in fiscal 2026

The U.S. Securities and Exchange Commission filed 348 enforcement actions in fiscal year 2026, ordered more than $1 billion in monetary relief, and returned approximately $731 million to more than 250,000 harmed investors, the agency announced November 10.

At the same time, state securities regulators – working independently and in coordination with federal authorities – brought more than 1,000 enforcement actions of their own, according to the North American Securities Administrators Association‘s newly published 2026 Enforcement Report.

The two reports document a year in which regulators at every level trained their resources on the same core targets: Ponzi schemes, cross-border fraud, digital asset scams, and the growing exploitation of retail and older investors.

The SEC’s fiscal year ran through September 30. The agency obtained orders totaling $1.095 billion in monetary relief – comprising $752 million in disgorgement and prejudgment interest and $343 million in civil penalties.

Two-thirds of all standalone enforcement actions brought this year included charges against at least one individual, a figure the agency highlighted as central to its deterrence strategy.

“The success of the SEC’s enforcement program is ultimately measured by how effectively it advances the SEC’s mission, protects investors, holds wrongdoers accountable, and strengthens confidence in our markets,” SEC Chairman Paul S. Atkins said in the agency’s announcement.

David Woodcock, director of the SEC’s Division of Enforcement, added that the division had reviewed its investigative docket, strengthened its investigative capabilities and launched several new initiatives during the year.

Retail fraud and Ponzi schemes draw heaviest scrutiny

The year’s enforcement calendar was crowded with Ponzi cases. Among the most consequential: the SEC charged Goliath Ventures, Inc. and its founder and CEO for allegedly operating a multi-year scheme that raised at least $425 million from more than 1,300 investors. In a separate action, three founders were charged in connection with an alleged Ponzi targeting Orthodox Jewish communities in New Jersey and New York, raising approximately $47 million from more than 87 investors. AKL Transport LLC and its founder were also charged in an alleged scheme that raised at least $127 million from approximately 765 investors nationwide.

Pre-IPO fraud emerged as a distinct focal point. The Commission charged private fund adviser Adit Ventures Management and its CEO for allegedly defrauding investors in pre-IPO shares, including misappropriating advisory client assets and charging millions in undisclosed fees.

A separate action charged private fund adviser Meyer Global Management and its CEO for allegedly defrauding investors in connection with pre-IPO securities in SpaceX and other private companies. The SEC also charged boiler room operator Andrew Spaventa for allegedly defrauding retail investors of $74 million in a scheme that purportedly offered access to pre-IPO shares while charging hidden fees.

The SEC’s whistleblower program received approximately 26,000 tips during the fiscal year – the highest number of individual award recipients since fiscal year 2023 – and distributed more than $158 million in awards to 65 individuals. Since the program’s launch in 2011, the SEC has ordered more than $11 billion in financial remedies in cases driven in whole or part by whistleblower information.

State regulators step up on digital fraud and senior protection

State securities regulators ran parallel enforcement operations throughout 2025, managing more than 9,000 active investigations and filing 1,036 civil, administrative, and criminal actions against 1,236 individuals and entities, per the NASAA report. Those actions produced more than $437 million in restitution to harmed investors and more than $383 million in fines and penalties.

Broker-dealer enforcement was particularly aggressive. NASAA members brought 143 actions naming broker-dealers as respondents or defendants – a 66 percent increase over 2024. Actions against broker-dealer agents rose 123 percent year-over-year. Enforcement actions involving investment advisers and their representatives also climbed, up 30 percent and 61.5 percent, respectively.

Digital asset cases surged. State regulators opened 677 new investigations involving cryptocurrency or digital assets in 2025, up from 463 the prior year, resulting in 83 enforcement actions. Pig butchering schemes – in which fraudsters build online relationships before draining victims’ accounts – accounted for 215 investigations. Social media fraud drove 181 more.

Older investors remained the most targeted demographic. State regulators received 4,690 complaints regarding alleged misconduct against seniors in 2025, a 30 percent jump from 2024’s 3,613 complaints. Investigators opened 1,977 new cases involving older investors and took 158 enforcement actions. Crypto and digital assets led the product categories tied to senior exploitation, accounting for 359 investigations.

Coordinated multi-state action secured approximately $27.25 million in total restitution from major brokerage firms that had charged unreasonably high commissions on small-dollar transactions over a five-year period – cases that regulators said involved minimum commission charges as high as $95, well above the standard 5 percent regulatory threshold.

New internal units aim to sharpen future enforcement

On the structural side, the SEC’s Division of Enforcement spent the fiscal year reorganizing and investing in new capabilities. The agency formed a Retail Fraud Working Group to identify and disrupt fraudulent schemes targeting everyday investors, including Ponzi schemes, impersonation scams, and market manipulation. It also established a Financial Reporting and Accounting Unit to concentrate expertise around detecting accounting fraud earlier in the reporting cycle.

A new Office of Super Intelligence and Analytics was launched to bring advanced data-driven techniques directly into investigative workflows – including AI-enabled anomaly detection, accelerated document review, and improved blockchain and financial-flow analysis.

The Commission also updated its Enforcement Manual for the first time since 2017, standardizing the Wells process, adding transparency to settlement procedures, and clarifying the framework for evaluating cooperation.

State regulators, for their part, continued to collaborate across jurisdictions and with federal partners. NASAA members received 1,428 referrals from external agencies in 2025, with the Financial Industry Regulatory Authority, state and local law enforcement, and the SEC accounting for the largest share. State regulators also referred 155 matters to the FBI or Department of Justice.

The SEC’s fiscal 2026 results arrived as InvestmentNews recognized the best wealth managers and advisors under 40 in the USA  – a cohort whose careers will unfold against a backdrop of intensifying regulatory scrutiny and rising investor expectations. Advisors looking to understand how enforcement trends are reshaping practice management can also explore InvestmentNews‘ ongoing analysis of SEC enforcement pivots and what they mean for independent advisors.