SEC Sues Firm for Raising $410 Million in Pre IPO Linked Fraud Case
StraightPath Venture Partners has had its assets frozen by the Securities and Exchange Commission (SEC) due to securities violations, including allegedly selling pre-initial public offering (IPO) shares they did not own, pocketing undisclosed fees, and commingling investor funds, resulting in Ponzi scheme-like payments. The SEC charged the defendants with violating antifraud and provisions of the federal securities laws.
The SEC stated that the defendants ran an unregistered broker-dealer and raised over $410 million in pre-IPO stock funds from thousands of investors spanning from 2017 to 2022.
Christopher Warren, Managing Partner at Warren Law Group, advises, “Whenever an entity takes funds from investors, it is critical to engage sophisticated securities counsel to navigate the regulatory quagmire of securities laws and regulations. An experienced securities attorney could have advised StraightPath to keep on the straight path and avoid an expensive SEC enforcement action.”
If you are being investigated by the SEC, DOJ, or other government regulators for violating securities laws you should seek experienced legal counsel. Contact the attorneys at Warren Law Group at (866) 954-7687 or email email@example.com to schedule your consultation.