SEC charges private fund adviser with alleged fraud before SpaceX IPO
The Manhattan-based fund adviser rode investor enthusiasm for pending initial public offerings by companies including OpenAI, the Securities and Exchange Commission alleged.
The US Securities and Exchange Commission (SEC) has filed charges against Meyer Global Management (MGM) and its CEO, Owen Meyer, for allegedly defrauding retail investors through a series of alleged schemes. According to a complaint filed in the US District Court for the Southern District of New York, the SEC alleges that MGM violated its fiduciary duties by misusing client fund assets and misleading investors in the fund.
The SEC claims that client assets from certain MGM-managed funds were misappropriated to pay for Meyer's personal expenses. The regulator is seeking permanent injunctive relief, civil penalties, and the recovery of illegal profits through a process known as disgorgement. Additionally, the SEC alleges that MGM and Meyer failed to address a capital call deficiency owed by an MGM-managed fund related to its SpaceX investment, resulting in the fund losing nearly $3 million.
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