SEC Charges Meyer Global Management, CEO With Fraud Over Pre-IPO SpaceX, OpenAI Funds

The SEC charged Meyer Global Management and CEO Owen E.H. Meyer with defrauding investors in pre-IPO securities of SpaceX, OpenAI and other companies, alleging misuse of client assets beginning December 2021, according to a Wednesday filing. The agency alleged MGM and Meyer raised at least $18.5 million from nearly 100 investors between 2019 and 2024 by selling interests in funds holding pre-IPO shares. In at least three instances, they misused at least $1.27 million of client capital to fund Meyer's lifestyle, personal investments and other MGM-advised firms, including an evening at a strip club, the SEC said. "This case is a reminder that fraudsters can exploit the allure of exclusive, high-return pre-IPO access to take advantage of retail investors," said Corey A. Schuster, chief of the Enforcement Division's Asset Management unit. MGM did not respond to requests for comment.