Klarna and SpaceX stakes sit at the center of the SEC’s fraud claims.
AUG 11, 2026
By Tez Romero
The SEC says a New York advisor sold stakes in private pre-IPO funds and then, over several years, misused client money.
On August 10, the Securities and Exchange Commission sued a New York private-fund firm and its founder, alleging fraud across a family of private funds built around pre-IPO shares. The complaint, filed in the Southern District of New York, names five defendants: the firm’s founder and four affiliated entities.
The structure is straightforward. According to the filing, those entities – Adit Ventures Management and three general partners the complaint calls Adit Ventures I, II and III – sold interests in funds holding shares of companies such as Klarna, SpaceX and Flexport. Investors were buying a chance at a payout if those companies went public. The complaint alleges more than 1,000 investors backed over 60 of these funds. It says the firm’s founder built the business, owns most of it, and was listed as chief executive, chief investment officer and chief compliance officer.
The SEC describes what it calls a “scheme” with several parts.
The first concerns how deals were closed. The complaint alleges the founder secured more than $15 million from one investor by falsely claiming a vehicle he controlled already held 32,000 shares of Klarna, when, according to the filing, it held none at the time. A side letter told the investor it was buying into an entity “which owns shares in Klarna,” which the SEC alleges was false. In a second instance, the complaint alleges he raised $5 million by promising to invest $5 million of his own money alongside the client, then took nearly two years and, according to the filing, contributed only about half.
The second concerns the money itself. The complaint alleges the firm told investors it needed capital immediately to pursue pre-IPO opportunities, then used it for other purposes, including “misappropriating money directly” and taking unsecured loans from the funds on terms the SEC says favored the firm. The filing describes more than 50 such loans from client funds, some left unpaid for years.
The third part is the one compliance officers will want to read closely. The complaint alleges the firm bought pre-IPO shares and resold them to its own client funds at a higher price, keeping the difference. In one example, the filing says a general partner acquired a SpaceX interest at $420 per share and sold it to a client fund at about $498, keeping a profit of around $1,020,000. The SEC alleges the firm concealed these markups by reporting a misleading “Original Purchase Price” and charged “Acquisition Fees” that the fund agreements did not permit.
The complaint also alleges the founder pledged client-fund assets as collateral for a $10 million line of credit benefiting two of the general partners, without informing the affected funds or investors. According to the filing, this happened after the SEC began asking about the firm’s lending practices.
A registration claim rounds out the case. The SEC alleges Adit Ventures Management relied on a venture-capital exemption it did not qualify for and did not register as an investment advisor until March 2024, which the complaint says let it avoid routine SEC examinations.
The allegations point to familiar pressure points for advisors. Under the Advisers Act, principal transactions require written disclosure and client consent. Fees and intercompany loans are expected to track fund documents. The complaint quotes an Adit representative telling a prospective investor the firm was “as transparent as possible” in its accounting, a statement the SEC frames against the conduct it alleges.
The Commission brings eight claims, including securities fraud and multiple Advisers Act violations, and seeks disgorgement, civil penalties and permanent injunctions.
The allegations have not been tested in court. The defendants have not yet filed a response, and no court has ruled. The complaint reflects the SEC’s allegations only.
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