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

The Securities and Exchange Commission (SEC) has accused Andrew Spaventa, the founder of The Spaventa Group (TSG), and several of his companies of running a fraudulent "boiler room" to sell shares in exclusive private tech companies to thousands of investors. The scheme, which lasted from December 2020 to June 2025, allegedly generated over $74 million for 11 private funds managed by Spaventa's companies.

TSG, founded by Spaventa, a former broker, allegedly cold-called over 100 agents who made slick, scripted pitches to prospective investors, promising no hidden fees. Despite this, investors paid an average of 46% more for their positions than the companies paid to acquire them, according to the SEC. Some investors paid up to 91% more.

The SEC claims investors were unaware of the high markups. Spaventa allegedly coached his sales team, many of whom were not registered, to use vague language like "referral fee" instead of "commission" and to avoid disclosing the price paid for the shares. The SEC also alleges that Spaventa backdated some fund equity transfer agreements and that the funds had no board of directors to oversee transactions. The SEC is seeking disgorgement, civil penalties, and a permanent ban from the securities industry.