The U.S. Securities and Exchange Commission charged private fund adviser Meyer Global Management LLC and CEO Owen E.H. Meyer with defrauding funds and their investors through five alleged schemes involving SpaceX, OpenAI and other pre-IPO securities. The complaint alleges that, from at least December 2021, the defendants breached their fiduciary duties by misusing fund assets, concealing investment failures and issuing misleading statements about investors’ holdings and account values. Meyer Global Management and Meyer allegedly misappropriated at least USD 1.27 million in three schemes for personal expenses, investments and obligations involving other funds. They also allegedly used USD 85,950 of another fund’s capital as an undisclosed interest-free loan, withheld portions of SpaceX fund distributions and required investors to accept about 5% less than they were owed and sign releases before receiving payment. In a separate case, their failure to meet a capital call, respond to default notices or defend litigation allegedly caused a fund to forfeit its entire SpaceX investment of nearly USD 3 million, while investors continued to receive misleading communications suggesting shares would be distributed. The complaint, filed in the U.S. District Court for the Southern District of New York, alleges violations of the Investment Advisers Act’s antifraud provisions. The SEC seeks permanent injunctions, disgorgement with prejudgment interest and civil penalties, as well as an order barring Meyer from acting as or being associated with a broker, dealer or investment adviser.

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