U.S. SEC Sues Two Private Funds Over Alleged Fraud Tied to Pre-IPO Stakes in OpenAI and SpaceX

The U.S. Securities and Exchange Commission has filed two civil actions against private fund advisers, alleging they raised money by pitching access to pre-IPO shares of high-profile technology companies including OpenAI and SpaceX, while providing investors with misleading information and diverting parts of the proceeds. In one case, the SEC said Meyer Global Management and its principal, Owen Meyer, raised at least $18.5 million from nearly 100 investors to buy shares of pre-IPO companies. The agency alleges at least $1.27 million was misappropriated, including spending on personal expenses, entertainment, and personal investments. The SEC also claims Meyer set up funds marketed as vehicles to invest in OpenAI and SpaceX, even though some of those funds never held the assets they purported to own. In a separate matter, the SEC and federal prosecutors accused Christopher Dinelli and Jacob Frankel of Beyond Alpha Ventures of raising more than $8.7 million from 35 investors while allegedly falsely stating the fund held positions in companies such as SpaceX and xAI. Regulators said the pair provided fabricated investment reports, and that portions of investor money were used for options trading, movie investments, and personal purposes. The SEC said it has not found any wrongdoing by the named technology companies or their management. Regulators have recently stepped up enforcement focused on products marketed as ways to gain exposure to pre-IPO shares of sought-after private companies, bringing multiple actions against related private fund advisers.