The Securities and Exchange Commission has filed a civil complaint against New York-based Meyer Global Management LLC and its sole owner, alleging a five-year pattern of fraud that siphoned at least $1.27 million from investors in private funds purportedly holding pre-IPO shares of SpaceX and OpenAI. The complaint, lodged on September 30, 2026, in the U.S. District Court for the Southern District of New York, names the firm and its principal as defendants, accusing them of deceiving nearly 100 investors across five separate schemes.
According to the filing, Meyer Global raised at least $18.5 million by selling interests in funds designed to hold shares of high-profile private companies. The firm claimed exempt reporting advisor status starting in 2022, and between 2022 and 2025 reported regulatory assets under management peaking at $34,331,748. The SEC alleges that from December 2021 through the present, the defendants engaged in a series of fraudulent activities, including misrepresenting investment status, misappropriating funds, and failing to honor capital calls.
Five alleged schemes
The first scheme involved a SpaceX-linked fund that raised approximately $1.1 million from 13 retail investors. When a third-party fund refused to approve the transfer of shares, the defendants allegedly told investors the investment "has been closed" and provided statements showing "unrealized gains" on shares the fund never acquired. The SEC claims that $570,000 of returned capital was diverted to a personal bank account, an investment in "an exotic car company," and a different fund.
The second scheme is particularly egregious. The filing alleges that $85,950 raised from three investors for a fund intended to invest in online casino operator PlayStar was used as an "undisclosed, months-long $85,950 interest-free loan." The firm's principal allegedly spent over $18,000 of that money in a single night at a strip club, including a $10,000 transfer to the club's manager with memo lines reading "movie tickets and theatre performance" and "opera." When questioned under oath, the principal invoked his Fifth Amendment privilege. Despite the fund account reaching a $0 balance, the defendants told one investor "your capital is safe in the fund."
In a third scheme, involving a fund repurposed for OpenAI, the SEC alleges the defendants collected approximately $1,097,500 from six investors and wired roughly $168,000 to a personal account—about three times the agreed management fees. The OpenAI deal allegedly fell through in March 2024, but investors were not informed for six months. As of the filing, the account held approximately $15,600, while three investors were still owed approximately $195,000.
The fourth scheme involved SpaceX-linked funds that had raised about $5.6 million from roughly 45 investors. A court-appointed receiver wired $13,829,158.01 for distribution, but the SEC alleges only about $13,142,522 reached investors. The defendants then allegedly required investors to sign broad releases before paying out amounts roughly 5% below what their own calculations showed was owed.
In the fifth scheme, the complaint alleges the defendants failed to pay a $46,020 capital call, ignored three default notices, and never responded to litigation—resulting in forfeiture of all of a fund's SpaceX interests worth approximately $3,125,000. On the day of SpaceX's IPO, the defendants still emailed investors to "stay tuned for further updates as to your distribution of shares."
Regulatory context
The SEC charges violations of Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act and Rule 206(4)-8. The agency seeks permanent injunctions, disgorgement, civil penalties, and a permanent industry bar. This case echoes other recent enforcement actions, such as the SEC's allegations against a crypto AI platform that defrauded 300 investors of $12.5 million, and the West Palm Beach operator accused of fabricating returns in a $750K police pension scam.
The case also highlights the growing interest in pre-IPO investments, particularly in companies like SpaceX and OpenAI, which have seen their debuts reshape major indexes. Advisors should be cautious when recommending such funds, as the SEC continues to scrutinize private fund practices. The agency has also proposed new rules for accredited investors and fund governance, which could impact how these offerings are structured.
