SEC Accuses Firm of $74M Fraud Selling Private Tech Shares

The Securities & Exchange Commission (SEC) has accused The Spaventa Group (TSG), a Long Island-based financial firm, of defrauding over 800 investors, many of whom were retirees, through a "boiler room" operation that allegedly sold shares in exclusive private technology companies while concealing substantial fees. The firm, founded by Andrew Spaventa, reportedly raised more than $74 million across 11 private funds between December 2020 and June 2025. These funds offered investors access to shares in highly sought-after private companies such as SpaceX, Anduril, Anthropic, and Perplexity. The SEC's complaint, filed in the Southern District of New York, details allegations that TSG's sales force, comprising over 100 agents, cold-called prospective investors with scripted pitches that repeatedly promised no "hidden fees." Despite these assurances, investors allegedly paid an average premium of 46% more for their positions than TSG's own companies paid to acquire them, with some markups reaching as high as 91%. These undisclosed markups meant investors were unaware of the true cost of their investments. Sheldon L. Pollock, associate director of the SEC's New York regional office, characterized the operation as typical of "boiler room operators" who use unsolicited calls and high-pressure tactics to impose hidden fees. The SEC claims that the accused companies and Spaventa collectively collected $23 million in undisclosed fees. A significant portion of these fees, over $12 million, was allegedly distributed as commissions to the sales agents responsible for the cold calls. Andrew Spaventa himself is alleged to have personally benefited, receiving at least $4 million, which he reportedly used for personal expenses including a home purchase, renovations, travel, and luxury car payments. Spaventa, 40, has denied the allegations and stated his intention to defend himself against the SEC's accusations. The SEC's investigation focused on the period from December 2020 to June 2025, during which TSG operated from offices in Long Island and New Jersey. The firm's strategy involved targeting retail investors, with over 650 individuals investing $100,000 or less, and more than 100 identified as retirees. The SEC's action aims to hold TSG and Spaventa accountable for what it describes as deceptive practices in the sale of private equity investments.