SEC charges fund advisers over misuse of OpenAI, SpaceX pre-IPO investor funds

October 1, 2026 at 05:12 AM2 min

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The SEC filed charges against private fund advisers who allegedly misappropriated investor money meant for pre-IPO shares in OpenAI, SpaceX, and other startups. One adviser, Owen Meyer, is accused of spending over $18,000 in fund capital at a strip club in April 2023. The cases are part of a broader SEC crackdown on pre-IPO fund fraud following SpaceX's $1.8 trillion IPO in June.

Key Facts

The SEC filed two separate cases on Wednesday against private fund advisers for allegedly deceiving investors about pre-IPO share holdings in OpenAI, SpaceX, SandboxAQ, Kraken, and xAI.
Owen Meyer, 35, and his firm Meyer Global Management raised at least $18.5 million from nearly 100 investors and allegedly misappropriated at least $1.27 million.
Meyer allegedly spent more than $18,000 in fund capital at a strip club in April 2023, including a $4,400 payment at 4:44 a.m. and another $3,650 at 5:30 a.m.
The SEC has brought a series of charges related to pre-IPO stakes and misappropriated funds following SpaceX's $1.8 trillion IPO in June.

SEC Charges

The SEC announced two separate cases on Wednesday against private fund advisers who allegedly deceived investors about pre-IPO share holdings. One adviser raised money for funds meant to hold OpenAI and SpaceX shares, while another pair pitched investors on SandboxAQ and Kraken while falsely claiming to hold stakes in SpaceX and xAI. None of the actual companies or their executives are alleged to have engaged in wrongdoing. The charges follow SpaceX's $1.8 trillion IPO in June and a series of SEC actions related to pre-IPO stakes and hidden fees.

Meyer Strip Club Spending

The SEC sued Owen Meyer, 35, and his firm Meyer Global Management in federal court in Manhattan, alleging he raised at least $18.5 million from nearly 100 investors. Meyer allegedly misappropriated at least $1.27 million in client money and spent more than $18,000 in fund capital for personal entertainment at a strip club in April 2023. He allegedly tried to pay a $4,400 bill at 4:41 a.m. using a debit card associated with Meyer Global Partners, but it was declined twice. Minutes later, Meyer transferred $10,000 from a fund account containing only investor money to the Meyer Global Partners account, then paid the club $4,400 at 4:44 a.m. and another $3,650 at 5:30 a.m. That same night, Meyer allegedly transferred $10,000 directly from a fund account holding investor money raised to buy shares of online casino operator Playstar to the strip club manager.