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SEC Press Releases·

SEC Charges Two Individuals With Orchestrating Fraud Scheme That Targeted Veterans

  • The SEC charged Christopher Kenji Dinelli & Jacob David Frankel with orchestrating a fraud scheme that raised over $8.7 million from 35 investors via Beyond Alpha Ventures LLC & Beyond Equity LLC.
  • The defendants allegedly targeted veterans & medical providers for veterans by misrepresenting the fund's options trading strategy & pre-IPO securities holdings in two private companies.
  • Dinelli & Frankel falsely claimed successful returns of up to 153% & a large client base despite consistent fund losses & a fabricated document titled "Trading Fund Overview 2024."
  • The complaint alleges investors' funds were diverted to brokerage accounts without their knowledge, where most money was lost due to failed options trades.
  • Dinelli allegedly misappropriated over $1 million & Frankel misappropriated over $340,000 from the scheme.
  • The SEC filed charges in the U.S. District Court for the Southern District of New York alleging violations of the Securities Act of 1933, Securities Exchange Act of 1934, & Investment Advisers Act of 1940 (for Frankel).
  • The SEC seeks permanent injunctions, disgorgement with prejudgment interest, & civil penalties against both defendants.
  • The U.S. Attorney's Office for the Southern District of New York announced parallel criminal charges against Dinelli & Frankel for the same conduct.