AI Business
6d ago
SEC alleges Long Island firm ran fraudulent pre-IPO scheme targeting retirees
Aug 18, 2026
AI Summary
The SEC has filed a complaint against The Spaventa Group, alleging it operated a fraudulent boiler room that raised $74 million by selling shares in pre-IPO companies. Over 800 investors, including many retirees, reportedly paid inflated prices for shares, with some markups reaching 91%. The firm’s owner, Andrew Spaventa, has denied the allegations.
- The SEC has accused The Spaventa Group, led by Andrew Spaventa, of running a fraudulent scheme to sell pre-IPO shares, including those of SpaceX and Anthropic.
- The complaint claims that the firm employed over 100 agents who made thousands of calls to sell shares, raising more than $74 million from over 800 investors between December 2020 and June 2025.
- Most investors contributed $100,000 or less, with more than 100 being retirees.
- The SEC alleges that investors paid an average of 46% more than the prices Spaventa's companies paid for the shares, with some markups as high as 91%.
- Andrew Spaventa has denied the SEC's claims regarding the operation of the alleged boiler room.
fraudsecuritiesinvestmentretireesscandal