Bluesky Eagle Ordered to Pay $1 Million in SEC Adviser Action

Investment firm accused of falsely claiming public status, inflating assets under management

Published on Feb. 12, 2026

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An investment advisory firm, Bluesky Eagle Capital Management Ltd., has been ordered to pay a $1.1 million civil penalty by a federal judge in New York. The Securities and Exchange Commission had sued the firm for falsely claiming to be a public company, inflating its assets under management, and misrepresenting its business location.

Why it matters

This case is part of a broader SEC crackdown on advisory firms making misleading disclosures about their operations and finances. It highlights the importance of accurate reporting and transparency in the investment management industry to protect investors.

The details

Judge Arun Subramanian in the US District Court for the Southern District of New York handed down the default judgment against Bluesky Eagle Capital Management Ltd. The firm was one of six companies hit with similar charges in separate cases by the SEC last November. Each suit accused the advisory firms of making misleading disclosures about where they were headquartered and how much money they managed.

  • The SEC filed the charges against Bluesky Eagle Capital Management Ltd. in November 2025.
  • The default judgment against the firm was handed down by the judge on February 12, 2026.

The players

Bluesky Eagle Capital Management Ltd.

An investment advisory firm that was sued by the SEC for making false claims about its public status, assets under management, and business location.

Judge Arun Subramanian

The federal judge in the US District Court for the Southern District of New York who handed down the $1.1 million default judgment against Bluesky Eagle Capital Management Ltd.

Securities and Exchange Commission (SEC)

The US government agency that filed the charges against Bluesky Eagle Capital Management Ltd. and several other investment advisory firms for making misleading disclosures.

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The takeaway

This case highlights the SEC's ongoing efforts to crack down on investment advisory firms that make false or misleading claims about their operations and finances. It underscores the importance of transparency and accurate reporting in the industry to protect investors.