Litigation Releases (Stuart Frost)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26505 / March 24, 2026

Securities 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 Funds

On 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.