The Securities and Exchange Commission Monday charged Adit Ventures Management LLC, CEO Eric Munson, and three affiliated general partners with defrauding investors through pre-IPO investments, including Space Exploration Technologies Corp. (NASDAQ:SPCX) and Klarna Group PLC (NYSE:KLAR).
False Claims Over Klarna Shares
According to the SEC, the alleged misconduct ran from April 2019 through December 2024 and included misrepresenting fund holdings, using client money for unauthorized loans and charging millions of dollars in undisclosed fees.
In one example involving Klarna, the SEC alleged Adit Ventures told an investor that a fund owned 32,000 Klarna shares when it did not.
The investor subsequently committed about $15 million based on that representation, according to the complaint.
$78 Markup On SpaceX Shares
The firm also bought SpaceX shares for $420 each and charged a client fund $498 per share, concealing the $78-per-share difference, the complaint showed.
SpaceX priced its IPO at $135 per share in June before the stock surged to a post-IPO high of about $225. Shares have since pulled back.
The regulator has been examining continuation vehicles, a fund structure used by private equity and other asset managers to transfer hard-to-sell holdings into new investment pools.
Founded in 2016 by Munson, New York-based Adit Ventures managed about $465 million in assets, primarily through funds focused on pre-IPO investments in technology and space companies.
Adit Ventures did not immediately respond to Benzinga’s request for comment on the charges.
Munson Rejects SEC Allegations
"Let me be unequivocal: I have delivered for my investors, and I reject these allegations completely," Munson said in a statement, according to Reuters News.
The defendants agreed to permanent injunctions against violating the charged securities laws and to pay disgorgement, prejudgment interest and civil penalties in amounts to be determined by the court.
Munson also agreed to a forthcoming associational bar, with the right to seek reentry after three years, the SEC said.
“I am settling this matter because fighting it will not result in any benefit for me or for the investors I have spent my professional life serving,” Munson added.
Price Action: SPCX closed 4.23% higher on Monday at $138.74 and fell 1.56% in extended trading.
Benzinga edge rankings indicate Space Stock has a negative price trend across the short, medium, and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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