2026-03-24 sec-litreleases litigation_release 64 KB 1,258 chars

SEC v. Stuart Frost, No. LR-26505, Central District of California (Mar. 24, 2026) — Press Release

raw: Stuart Frost

Stuart Frost, No. 8:19-cv-01559-SPG (Mar. 24, 2026)

Caption
Securities and Exchange Commission v. Stuart Frost
Source PDF JSON
summary

Investment adviser Stuart Frost obtained a final consent judgment for defrauding five venture capital funds of over $14 million through undisclosed incubator fees.

paragraph

Stuart Frost was charged with violating the antifraud provisions of the Investment Advisers Act of 1940. Between 2012 and 2016, he defrauded five private venture capital funds and their investors of over $14 million by charging excessive, undisclosed incubator fees. The final judgment requires Frost to pay a $150,000 civil penalty and imposes a permanent injunction against future violations.

narrative

The SEC obtained a final consent judgment against investment adviser Stuart Frost for violating the antifraud provisions of the Investment Advisers Act of 1940. From 2012 through 2016, Frost defrauded five private venture capital funds and their investors of more than $14 million. He achieved this by charging undisclosed and excessive incubator fees to start-up companies in which the funds had invested, thereby breaching his fiduciary duties. To resolve the litigation, Frost consented to a final judgment that permanently enjoins him from violating specific sections of the Advisers Act. Additionally, he was ordered to pay a $150,000 civil penalty. The case was handled by the SEC’s Los Angeles Regional Office.

Enriched metadata

Scheme
investment-adviser-fraud (100%)
Court
Central District of California
Case No.
8:19-cv-01559-SPG
Outcome
settled
Civil penalty
$150,000
Entity
Stuart Frost
Classified investment-adviser-fraud(confidence 100%). EDGAR detection: forms ADV/ADV-E/ADV-W/Form D· recall 33% / precision 13%. detection rule →
Statutes
15 U.S.C. § 80b-6
Parties
Securities and Exchange CommissionStuart Frost
Keywords
stuart frostfrostsecstuartsecurities exchangeprivate ventureventure capitalfinalfundssecuritiesexchangemarchinvestmentprivateventure

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 2
  • $14.00M $14 million $10M–$100M
  • $150K $150,000 $100K–$1M
Entities 2
  • person final judgment
  • court united states district court for the central district of california
Triples 8
  • United States District Court for the Central District of California entered final judgment as to Defendant Stuart Frost
  • SEC charged Stuart Frost with violations of the antifraud provisions of the Investment Advisers Act of 1940
  • Frost defrauded five private venture capital funds and the funds’ investors of over $14 million
  • Frost charged undisclosed and excessive incubator fees to start-up companies
  • Frost verb own fiduciary duties to his clients
  • Frost consented to entry of a final judgment
  • final judgment enjoins Frost from violating Sections 206(1), 206(2), and 206(4) of the Advisers Act and Rule 206(4)-8
  • final judgment orders Frost to pay a $150,000 civil penalty
PDF (from attached: complaint)
209(e)(1) and 214 of the Investment Advisers Act of 1940 (“Advisers Act”) [15 · Source
Text layers
Extracted body text (1,258c) 
U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26505 / March 24, 2026Securities and Exchange Commission v. Stuart Frost, No. 8:19-cv-01559-SPG-JDE (C.D. Cal. filed Aug. 13, 2019)SEC Obtains Final Consent Judgment as to Investment Adviser to Five Private Venture Capital FundsOn March 10, 2026, the United States District Court for the Central District of California entered a final judgment as to Defendant Stuart Frost, whom the SEC previously charged with violations of the antifraud provisions of the Investment Advisers Act of 1940.The SEC’s complaint, filed on August 13, 2019, alleged that from 2012 through 2016, Frost defrauded five private venture capital funds and the funds’ investors of over $14 million by charging undisclosed and excessive incubator fees to start-up companies in which the funds invested, in breach of his fiduciary duties to his clients.Frost consented to the entry of a final judgment, which permanently enjoins him from violating Sections 206(1), 206(2), and 206(4) of the Advisers Act and Rule 206(4)-8 thereunder, and orders him to pay a $150,000 civil penalty.The SEC’s litigation was handled by Donald Searles and Charles Canter and supervised by Stephen Kam, all of the SEC’s Los Angeles Regional Office.
OCR text (1,258c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26505 / March 24, 2026Securities and Exchange Commission v. Stuart Frost, No. 8:19-cv-01559-SPG-JDE (C.D. Cal. filed Aug. 13, 2019)SEC Obtains Final Consent Judgment as to Investment Adviser to Five Private Venture Capital FundsOn March 10, 2026, the United States District Court for the Central District of California entered a final judgment as to Defendant Stuart Frost, whom the SEC previously charged with violations of the antifraud provisions of the Investment Advisers Act of 1940.The SEC’s complaint, filed on August 13, 2019, alleged that from 2012 through 2016, Frost defrauded five private venture capital funds and the funds’ investors of over $14 million by charging undisclosed and excessive incubator fees to start-up companies in which the funds invested, in breach of his fiduciary duties to his clients.Frost consented to the entry of a final judgment, which permanently enjoins him from violating Sections 206(1), 206(2), and 206(4) of the Advisers Act and Rule 206(4)-8 thereunder, and orders him to pay a $150,000 civil penalty.The SEC’s litigation was handled by Donald Searles and Charles Canter and supervised by Stephen Kam, all of the SEC’s Los Angeles Regional Office.

Related documents (1)