SEC settles charges over SpaceX, Klarna, pre-IPO share fraud

The US Securities and Exchange Commission (SEC) announced on Monday it had settled fraud charges against Adit Ventures Management, its founder Eric Munson, and three partners. The allegations, as reported by the SEC, involve the use of false claims and promises to solicit investments in Adit-managed funds and the misuse of client money for the firm's own benefit.

This included taking unsecured loans on favorable terms without disclosing the loans to clients. Adit Ventures, without admitting to the allegations, agreed to a consent order which would require payments of disgorgement and a civil penalty, pending approval by a federal judge. The SEC's complaint stated that Munson had falsely claimed Adit Ventures owned shares of stock in pre-IPO companies, including SpaceX, and caused client funds to buy those shares at a higher price, misrepresenting their true cost.

Munson denied the charges in a statement, asserting he had delivered for his investors and rejecting the allegations. The SEC declined to comment further on the matter.