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SEC Implicates Florida Company of Scams in IPO-Linked Investments|Investing News

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May 13, 2022
tagreuters.com2022newsml LYNXNPEI4C0N212022 05 13T150218Z 1 LYNXNPEI4C0N2 RTROPTP 3 USA SEC PUMP DUMPSCHEMES

NEW YORK CITY (Reuters) – The U.S. Securities and Exchange Commission on Friday took legal action against a Florida company it stated raised a minimum of $410 million by fraudulently appealing financiers access to personal business that had possible to perform going publics.

In a civil problem submitted in Manhattan federal court, the SEC likewise looked for a property freeze versus StraightPath Endeavor Partners LLC and its creators, to stop what it called an “continuous scams.”

StraightPath did not right away react to ask for remark.

The SEC stated StraightPath pitched its financial investment automobiles as a method for common financiers to own possibly rewarding, hard-to-find pre-IPO shares.

However the SEC stated StraightPath typically did not have the shares to support the financial investments and made “Ponzi-like” payments to some financiers, while its creators and a portfolio supervisor kept about $75 countless financier cash on their own.

The Jupiter, Florida-based company apparently raised the $410 million from more than 2,200 financiers in between November 2017 and February 2022, the SEC stated.

( Reporting by Jonathan Stempel in New York City)

Copyright 2022 Thomson Reuters

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