SEC Charges Three Sales Agents at StraightPath Venture Partners With Fraud and Unregistered Broker Activity
Retrieved on:
Thursday, March 23, 2023
Financial Industry Regulatory Authority, IPO, Failure, Citadel LLC, Marketing, Commission, Lightspeed Venture Partners, Complaint, District court, Guarantee Security Life Insurance Company, Investment, Security (finance), Douglas v. U.S. District Court ex rel Talk America, Financial adviser, Hollender, Insurance, Vecchio
The Commission previously charged StraightPath Venture Partners, StraightPath Management LLC, and its four principals in May 2022 in connection with a $410 million fraud.
Key Points:
- The Commission previously charged StraightPath Venture Partners, StraightPath Management LLC, and its four principals in May 2022 in connection with a $410 million fraud.
- The defendants allegedly provided investors with marketing materials, advised investors on the supposed merits of the investments, and received transaction-based compensation, all hallmarks of a broker, despite not being registered as brokers.
- “StraightPath Venture Partners could not have cheated investors without the unregistered sales agents who fraudulently solicited them,” said Antonia M. Apps, Director of the New York Regional Office.
- The SEC appreciates the assistance of the Financial Industry Regulatory Authority; the Office of the Montana State Auditor, Commissioner of Securities and Insurance; and the New Jersey Bureau of Securities.