SEC alleges Meyer Global misused fund assets in pre-IPO investment schemes
The regulator says the adviser and CEO misled investors and that a fund lost a nearly US$3 million SpaceX investment after failing to meet a capital call.
The US Securities and Exchange Commission has filed a complaint accusing Meyer Global Management LLC and its chief executive, Owen E.H. Meyer, of misusing fund assets and misleading investors in schemes involving SpaceX and other pre-IPO securities.
The SEC alleges the conduct ran from at least December 2021 and included at least three schemes in which assets from MGM-managed funds were used to pay Meyer’s personal expenses. In one scheme, the complaint says, investor statements inflated account values.
The regulator also alleges that portions of investor proceeds were misappropriated from three funds. Investors were allegedly required to sign releases accepting distributions below the amounts they were owed to receive any payment.
Separately, the SEC says a fund repeatedly failed to address a capital call deficiency tied to its SpaceX investment and forfeited the nearly US$3 million holding.
The complaint was filed in the US District Court for the Southern District of New York and alleges breaches of antifraud provisions of the Investment Advisers Act of 1940. The SEC is seeking injunctions, disgorgement with interest and civil penalties. The allegations have not been established in court.
