SEC charges private fund adviser for allegedly defrauding retail investors

The United States Securities and Exchange Commission (SEC) has accused Meyer Global Management and its CEO, Owen Meyer, of orchestrating a scheme to defraud retail investors by exploiting their interest in pre-IPO shares of companies like SpaceX. According to the SEC's complaint filed in the US District Court for the Southern District of New York, Meyer Global violated its fiduciary duties by misusing assets belonging to its clients and deceiving investors in the fund.

The SEC alleges that funds managed by Meyer Global were used by Meyer to pay for his personal expenses. The regulator is seeking permanent injunctive relief, civil penalties, and the recovery of illegal profits through a process called disgorgement against Meyer Global and Meyer. Furthermore, the SEC claims that Meyer Global and Meyer repeatedly failed to address a capital call deficiency from an MGM-managed fund related to its SpaceX investment. This failure led to the fund losing nearly $3 million in investment.