SEC Charges Two Individuals With Orchestrating Fraud Scheme That Targeted Veterans

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The U.S. Securities and Exchange Commission announced charges against Christopher Kenji Dinelli and Jacob David "Kobe" Frankel for allegedly orchestrating a fraud scheme that raised more than $8.7 million from 35 investors through their fund, Beyond Alpha Ventures LLC, and advisory firm, Beyond Equity LLC. According to the SEC's complaint, filed in the U.S. District Court for the Southern District of New York, the defendants allegedly made material misrepresentations to veterans and others, including touting a "153% Net Return on Investment" despite consistent losses, and diverted investor money without their knowledge. The complaint alleges Dinelli misappropriated over $1 million and Frankel misappropriated over $340,000, and charges both with violating antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, with Frankel additionally charged under the Investment Advisers Act of 1940. The SEC states the complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties, and notes that the U.S. Attorney's Office for the Southern District of New York this week announced parallel criminal charges

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