SEC Charges Fund Manager Over Fraudulent Pre-IPO Share Sales in OpenAI and SpaceX

Key Facts

1The SEC alleged a fund manager misappropriated investor funds intended for pre-IPO shares of OpenAI and SpaceX.

2The misappropriated funds were allegedly used for personal expenses including strip clubs, Amazon, and Bloomingdale’s.

The SEC filed charges against a fund manager for allegedly misappropriating investor funds intended for pre-IPO shares of OpenAI and SpaceX. Fortune reported that the manager diverted capital into personal expenses after failing to secure the promised equity in the high-profile startups.

The misappropriated funds were allegedly used for personal luxury spending, including purchases from Amazon and Bloomingdale’s, as well as nightclub expenses. Regarding related instruments, AMZN closed at $249.15 on September 30, 2026, while SPCX closed at $149.24 on September 29, 2026.