SEC Charges Two Individuals With Orchestrating Fraud Scheme That Targeted Veterans

The Securities and Exchange Commission (SEC) has charged Christopher Kenji Dinelli and Jacob David "Kobe" Frankel with orchestrating a fraudulent scheme that defrauded over 35 investors of more than $8.7 million. According to the SEC, Dinelli, a former naval officer, and Frankel targeted veterans and those providing medical services to veterans, promising their investments would be used in a fund called Beyond Alpha Ventures LLC (BAV) and an advisory firm, Beyond Equity LLC.

The defendants allegedly made false claims about the fund's performance, assets under management, and client base, despite significant losses. The SEC alleges that the defendants continued to claim returns of up to 153% and a large client base, even though the fund's performance was failing. The complaint also claims that the defendants misappropriated over $1 million and $340,000, respectively.

The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, accuses Dinelli and Frankel of violating various securities laws. The U.S. Attorney's Office for the Southern District of New York has also announced criminal charges against the two individuals.