For years, the SEC has increasingly relied on extreme financial judgments for victimless, technical, or administrative violations—money grabs that have ruined livelihoods, ended careers, and destroyed small businesses. And while the current administration has made significant progress in deregulation, the reality in federal courtrooms looks very different, with aggressive enforcement still being pressed against individuals who lack the resources to fight back alone.
With the enthusiastic support of Impact Fund donors, Investor Choice Advocates Network (ICAN) defends small investors and entrepreneurs whose efforts have been stymied by the overreach of the SEC and by their own limited ability to effectively challenge the actions of the behemoth government agency. Through strategic litigation and supporting efforts, ICAN is building a precedent-based legal bulwark against SEC efforts to further restrict capital markets access.
A case filed by ICAN last September illustrates how the SEC’s power to enforce random and unjust rules hurts Americans. Emily Kapszukiewicz, a seasoned healthcare leader with a master’s degree in applied economics, is trusted to oversee multimillion-dollar budgets and guide life-saving programs. However, when she sought to invest her own savings in Healthcare Shares Venture Capital Fund, she was told she wasn’t “qualified.” Her net worth is $850,000 — just shy of the SEC’s $1 million cutoff. The irony is striking: Emily is qualified to serve as the CEO of a healthcare company but is barred from investing in the very fund she believes in.
Her co-plaintiff, Healthcare Shares Venture Capital Fund, was launched to tackle urgent challenges in American healthcare. Yet the SEC’s rule prevents them from raising capital from experts like Emily, who want to contribute both financially and with their experience. ICAN is representing these plaintiffs as they stand up to challenge this outdated rule — one that blocks partnerships between innovators and the professionals best positioned to support them.
ICAN focuses on driving SEC reform in four critical areas: reining in regulatory expansion, ending excessive punishments, restoring due process, and expanding market access. ICAN’s network of seventeen top-tier law firms collaborates on cases, giving their associates training and hands-on experience while contributing legal support and resources on a pro-bono basis.
Cofounder and President Nick Morgan’s extensive experience with the SEC and securities enforcement enables him to identify crucial areas of reform. Under his leadership, ICAN strategically selects cases aimed at precedent-setting, sustained wins even as it advocates for reforms that require coordinated action from Congress, the Executive Branch, the SEC, and the courts.
Morgan and his ICAN team know from personal experience how heavily the deck is stacked against small investors and are moving on their behalf to make the most of today’s openness to market reform. For their creativity and varied approach, ICAN has won many supporters, such as Dan Gallagher, former SEC Commissioner, who said “ICAN’s work is essential in ensuring the markets remain open and accessible to all. As a champion for retail investors, they are leading the fight in preserving investor choice and pushing back against unnecessary restrictions.”
As Mr. Morgan told Bradley Impact Fund members at last year’s conference, breaking down barriers to capital markets is an issue that transcends political ideology. That’s why ICAN works in good faith with allies across the ideological spectrum who share their vision for a vibrant American economy driven by innovation and entrepreneurship. Making their vision for all citizens having access to the opportunities afforded by robust capital markets a reality often means challenging the predatory regulation-through-litigation approach of the SEC.
Through targeted litigation strategy and advocacy, ICAN is fighting to stop the SEC from turning technical violations into legal nightmares that destroy careers, businesses, and families. This is how a coalition of free citizens can hold the SEC accountable to the core American values of justice, fairness, and due process—principles that are essential for more of us to bring our own American dream within reach.