SQN Capital settles with SEC, exits advisory business after valuation allegations

Overview

Updated Yesterday

The Securities and Exchange Commission (SEC) filed charges against New York investment adviser SQN Capital Management and its chief executive Jeremiah Silkowski on September 18, 2026. The two sides settled, and on October 8 a federal judge entered consent judgments that bar Silkowski from the advisory business and hand four equipment leasing funds to a court-appointed receiver.

The SEC alleged Silkowski inflated fund values from 2019 to 2025. He kept net asset values unchanged for years and misled investors about liquidation. Investors in the two largest funds got back 51% to 65% of their initial capital, and Silkowski paid a $200,000 civil penalty without admitting wrongdoing.

Why it matters

Investors in four equipment leasing funds now wait on a court-appointed receiver to liquidate what remains of their money after years of stalled distributions.

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Key Indicators

$200,000

Civil penalty paid by Silkowski

Ordered by the court as part of the consent judgment.

Funds handed to receiver

Four equipment leasing funds managed by SQN Capital.

51-65%

Capital returned to investors in two largest funds

Includes regular distributions and early liquidation payments.

Years of alleged violations

SEC alleged violations from 2019 through 2025.

Voices

Curated perspectives — historical figures and your fellow readers.

Ever wondered what historical figures would say about today's headlines?

People Involved

Jeremiah Silkowski

President, CEO, Chief Compliance Officer, and majority owner of SQN Capital Management

Permanently barred from investment advisory business; ordered to pay $200,000 civil penalty

Yann Geron

Court-appointed receiver

Tasked with liquidating four SQN funds and distributing proceeds to investors

Organizations Involved

SQN Capital Management, LLC

Investment Adviser

Exiting advisory business; funds handed to receiver

New York-based investment adviser that managed equipment leasing funds.

U.S. Securities and Exchange Commission

Federal Agency

Filed charges, obtained consent judgments

Federal agency that enforces securities laws.

Timeline

2019 October 2026

6 events Latest: Yesterday

Tap a bar to jump to that date

October 2026
Settlement announced
Latest Statement

SQN and Silkowski announce settlement, exit advisory business, funds pass to receiver.
Yesterday
Court enters consent judgments
Legal

Judge Rakoff enters consent judgments, appoints receiver, bars Silkowski from advisory work.
5 days ago
September 2026
SEC files charges
Legal

SEC charges SQN Capital and Silkowski with antifraud violations and inflated valuations.
September 18th, 2026
2020
SQN makes $20M distribution
Financial

SQN distributed nearly $20 million to investors as the first phase of planned liquidation.
2020
COVID-19 delays liquidations
External Event

The pandemic stalled fund liquidations, which remained delayed for more than five years.
2020
2019
Alleged violations begin
Allegation

SEC says Silkowski began inflating fund net asset values and failing to comply with fund documents.
2019

Scenarios

Receiver completes liquidation, investors get final distributions

Likely Resolves by End of 2028

Discussed by: Court filings, SEC press release

The receiver, Yann Geron, liquidates the remaining fund assets, including marine vessels and other illiquid holdings, and distributes net proceeds to investors. Given the illiquid nature of the assets, this could take years. The PR Newswire release notes the remaining investments were largely residual interests in assets such as marine vessels with no expected net cash flow until sold or refinanced.

Receiver pursues claims against Silkowski or former service providers

Possible Resolves by End of 2027

Discussed by: PR Newswire release

The receiver could pursue legal claims against Silkowski, former partners, or the service provider that withheld fund records. The PR Newswire release notes an ongoing dispute with a former service provider that withheld books and records of the funds.

Silkowski's ban holds, he stays out of advisory work

Likely Resolves by End of 2027

Discussed by: SEC consent judgment

Silkowski remains permanently barred from acting as or associating with an investment adviser, broker, or dealer. The ban holds unless a court modifies it. The consent judgment also requires him to pay the $200,000 civil penalty within 180 days.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

December 2008

Bernie Madoff (2008)

Madoff confessed in December 2008 that his investment advisory firm was a massive Ponzi scheme, defrauding investors of an estimated $65 billion in paper losses. The SEC had received complaints about Madoff for years but failed to uncover the fraud.

Then

Madoff was arrested and later sentenced to 150 years in prison. The SEC's failure to detect the fraud led to internal reforms.

Now

The case became the benchmark for SEC enforcement failures and prompted changes in how the agency handles tips and complaints.

Why this matters now

Both cases involve SEC enforcement against investment advisers who misrepresented fund values to investors, though Madoff's fraud was far larger and involved outright theft.

December 2017

Woodbridge Group (2017)

The SEC charged Woodbridge Group of Companies with operating a $1.2 billion Ponzi scheme involving real estate investments. The firm promised high returns but used new investor money to pay earlier investors.

Then

A court appointed a receiver to liquidate the firm's assets and return money to investors.

Now

The case became an example of how SEC enforcement actions lead to court-appointed receiverships for defrauded investors.

Why this matters now

Like SQN, Woodbridge involved a court-appointed receiver liquidating assets to return money to investors after SEC enforcement action.