The U.S. Securities and Exchange Commission charged Christopher Kenji Dinelli and Jacob David Frankel with allegedly raising more than USD 8.7 million from 35 investors through Beyond Alpha Ventures LLC and Beyond Equity LLC using false claims about investment performance, assets under management, clients and holdings. The alleged scheme targeted veterans and medical professionals serving veterans and offered interests in an options trading fund and special purpose vehicles purportedly holding pre-initial public offering securities. The complaint alleges the defendants advertised returns of up to 153% despite consistent trading losses, which exceeded 200% on a net investment basis by December 2025, and used false account statements to conceal the performance. Of nearly USD 6 million raised for pre-initial public offering investments, less than half was invested as promised. Funds were instead commingled, diverted to brokerage accounts where most were lost through options trading, or used for personal expenses, including more than USD 1 million allegedly misappropriated by Dinelli and more than USD 340,000 by Frankel. The SEC seeks permanent injunctions, restrictions on the defendants’ participation in securities activities and association with investment advisers, brokers or dealers, disgorgement with prejudgment interest, and civil penalties. The U.S. Attorney’s Office for the Southern District of New York has brought parallel criminal charges concerning the same conduct.
U.S. Securities and Exchange Commission charges two fund operators over alleged USD 8.7 million fraud involving 35 investors
The U.S. Securities and Exchange Commission charged Christopher Kenji Dinelli and Jacob David Frankel with an alleged fraud that raised more than USD 8.7 million from 35 investors. The complaint alleges they misrepresented fund returns and pre-initial public offering investments, diverted funds to loss-making options trades and misappropriated more than USD 1.34 million. Parallel criminal charges have also been filed.