SQN Capital Management Agrees to Settlement with SEC

NEW YORK, Oct. 12, 2026 /CourierPR/ -- SQN Capital Management, the investment advisory firm led by Jeremiah Silkowski, has agreed to settle a complaint with the U.S. Securities and Exchange Commission (SEC). The firm will exit the advisory business as part of the settlement, which includes no admission of wrongdoing. The agreement will result in the wind-down of the firm's remaining equipment leasing funds.

The SEC's complaint focused on SQN's alleged overstatement of investment values, particularly during the onset of the COVID-19 pandemic. The firm maintained these values based on potential exit opportunities that did not materialize. These efforts included a significant distribution of nearly $20 million to investors in 2020 as the first phase of planned liquidation. Additionally, SQN spent considerable resources on a roll-up transaction to sell its assets to a group of investors representing more than $200 million, though the transaction was delayed due to market dynamics.

Despite these efforts, the liquidation process was delayed for more than five years due to the lack of cash flow from the majority of the remaining investments. During this period, SQN subsidized the operations of the funds, using its limited resources to pay operating expenses and issue K-1s to investors. The firm also issued redemptions to investors experiencing extreme hardship, such as job loss, foreclosure, and medical emergencies.

Investors in the two largest SQN funds received between 51% and 65% of their initial capital through early liquidation distributions. The remaining investments were largely residual interests in illiquid assets, such as marine vessels, with no expected net cash flow until sold or refinanced. The delay in liquidation was further exacerbated by the pandemic, which affected the market and delayed the sale of these assets.

Following the settlement, the fund liquidations will be handed over to a court-appointed receiver. SQN Capital Management will write off all amounts due from and contributed to the funds and will cooperate with the receiver to facilitate the closure of the funds. The firm's decision to exit the advisory business was driven by the lack of resources to support both continued fund management operations and the regulatory compliance required to remain in good standing.

The settlement marks the end of a long and challenging period for SQN Capital Management, as the firm navigates the complexities of regulatory compliance and the financial realities of its investment portfolios.