OpenAI, SpaceX investor funds went to strip clubs, Bloomingdale's, and shopping on Amazon, SEC alleges in charges against private fund advisers | Fortune

The SEC filed charges against three private fund advisers in two separate cases, alleging they deceived investors about pre-IPO investments in high-profile startups. In the first case, Owen Meyer and his firm Meyer Global Management are accused of raising $18.5 million from nearly 100 investors while misappropriating at least $1.27 million in client funds. Meyer allegedly spent fund money on strip club visits, personal shopping at Bloomingdale's and Amazon, landscaping at his home, and payments to his father. He set up 16 funds claiming to invest in companies like OpenAI and SpaceX but allegedly failed to acquire shares, failed to inform investors when deals fell through, and paid himself excessive fees. On the day of SpaceX's IPO, Meyer emailed investors about the historic moment despite one fund having forfeited its entire stake. In the second case, former naval officer Christopher Dinelli and Jacob Frankel are charged with defrauding 35 investors of over $8.7 million through their firm Beyond Alpha Ventures, which falsely listed SpaceX and xAI as holdings. Their trading fund lost money in 13 of 14 months, and they allegedly sent fake account statements to investors, including a Navy veteran couple told their $750,000 investment had grown to $4.1 million. Frankel was also convicted of grand larceny and identity theft while allegedly concealing the conviction from regulators. The SEC is seeking industry bans, disgorgement, and penalties.

(Source：Fortune)