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SEC charges firm with defrauding retirees via inflated private tech investments

The U.S. Securities and Exchange Commission (SEC) has accused The Spaventa Group (TSG) and its founder, Andrew Spaventa, of defrauding investors, primarily retirees, by selling shares in high-profile private tech companies like SpaceX, Anduril, Anthropic, and Perplexity. The SEC alleges that TSG cold-called thousands of individuals, promising no hidden fees, but instead charged markups of up to 91% on investments, totaling $23 million in undisclosed fees. Spaventa allegedly profited at least $4 million from the scheme, which involved TSG entities buying shares and reselling them to Spaventa's own funds at inflated prices. AI

IMPACT Highlights risks in private market investments for retail investors, particularly concerning high-growth tech companies.

RANK_REASON SEC fraud charges against a financial firm selling private tech investments to retirees. [lever_c_demoted from significant: ic=1 ai=0.4]

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AI-generated summary · Google Gemini · from 1 sources. How we write summaries →

SEC charges firm with defrauding retirees via inflated private tech investments

COVERAGE [1]

  1. Fortune TIER_1 English(EN) · Amanda Gerut ·

    Boiler room raised $74 million selling retirees SpaceX, Anduril, Anthropic, and Perplexity while reaping ‘massive hidden fees,’ SEC claims

    The New York financier at the center of the case, Andrew Spaventa, denied the allegations on Friday, and said he planned to defend himself.