The Securities and Exchange Commission’s lawsuit alleged that Supreme Power made material misrepresentations and unsubstantiated statements in its Form ADV, which the firm filed with the Commission and made public on December 12, 2023.
The court accepted the factual allegations in the complaint as true due to the defendant’s default. The judgment permanently enjoins Supreme Power from violating Section 204(a) of the Investment Advisers Act by failing to make its books and records available to the Commission.
The court also issued a permanent injunction under Section 207 of the Advisers Act, prohibiting the firm from using the mails or interstate commerce to willfully make untrue statements of material fact or omit material facts in reports filed with the Commission.
Additionally, the judgment permanently restrains Supreme Power, its owners, and its executive officers from filing a Form ADV as an Exempt Reporting Adviser under Section 209(d) of the Advisers Act and Section 21(d)(5) of the Securities Exchange Act of 1934.
Supreme Power must pay the $1,182,254 civil penalty within 30 days of the judgment’s entry. The court designated any debt for disgorgement, prejudgment interest, or civil penalty arising from this proceeding as non-dischargeable under Section 523(a)(19) of the Bankruptcy Code.
The court retained jurisdiction to enforce the terms of the final judgment and noted that the Commission may use all authorized collection procedures, including moving for civil contempt, to enforce the penalty.