SEC Charges New York Adviser Pennetta in Scheme That Raised Over $10.5 Million, With Over $6.2 Million Misappropriated
The U.S. Securities and Exchange Commission (SEC) announced on June 24, 2026, that on June 22 it filed settled charges in the U.S. District Court for the Southern District of New York against New York resident and investment adviser Giovanni Pennetta for allegedly defrauding investors who invested over $10.5 million in his fund NextGenTech Investments LLC.
According to the SEC's complaint, Pennetta managed NextGenTech through the exempt reporting adviser Sestante Capital LLC. From February 2021 through December 2025, Pennetta solicited at least six investors seeking economic exposure to the securities of a private company and convinced them to invest over $10.5 million in NextGenTech based on false representations that he or the companies under his control owned or had access to the private company's shares. The complaint alleges that neither Pennetta nor his companies ever held or had access to the shares, and that none of the investor funds were used to purchase shares of the private company's stock. Instead, Pennetta allegedly misappropriated over $6.2 million for his personal use and to repay an investor in a separate NextGenTech offering.
The SEC's complaint charges Pennetta with violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), (2) and (4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. Pennetta has consented to the entry of a judgment, subject to court approval, permanently enjoining him from violating the charged provisions and from participating in the issuance, purchase, offer or sale of any security, except for purchases or sales for his own personal account. The proposed settlement provides for the court to determine at a later date, upon motion of the Commission, whether to order disgorgement, prejudgment interest and a penalty.
In a parallel criminal action concerning the same conduct, Pennetta pleaded guilty on March 5, 2026, to one count of wire fraud before the U.S. District Court for the Southern District of New York in United States v. Pennetta, 25-cr-577. The SEC said its investigation was conducted by its enforcement staff and thanked the U.S. Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation for their assistance.
Source: U.S. Securities and Exchange Commission
Published by GSM · USA (original Chinese edition)
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