AI Business
Aug 15, 2026
SEC alleges financial firm misled investors in tech company shares scheme
Aug 15, 2026
AI Summary
The SEC has charged The Spaventa Group and its founder, Andrew Spaventa, with fraud for allegedly misleading over 800 investors in private tech company shares, including SpaceX and Anduril. The firm reportedly collected more than $74 million while imposing undisclosed fees, with many investors unaware of the high markups on their investments.
- The Spaventa Group, founded by Andrew Spaventa, allegedly cold-called thousands of investors to sell shares in private tech companies, promising no hidden fees.
- More than 800 investors participated, with over 650 investing $100,000 or less, including more than 100 retirees.
- The SEC claims the firm raised over $74 million from December 2020 to June 2025, while investors paid an average of 46% more than the firm's acquisition costs for shares.
- The SEC alleges that Spaventa and his companies collected $23 million in undisclosed fees, with Spaventa personally receiving at least $4 million.
- The investments were structured such that Spaventa's companies bought shares and then resold them to funds he controlled at marked-up prices, without proper client consent.
- The SEC's complaint states that Spaventa coached sales agents to use misleading scripts and avoid disclosing the actual costs of shares to investors.
- The SEC is seeking disgorgement, civil penalties, and a permanent bar from the securities industry for Spaventa and his firms, as many investors have not recouped their investments.
investmentretirementhidden feesSECfinancing