SEC Charges Two Men in $8.7M Fraud Targeting Veterans
The SEC has charged Christopher Dinelli and Jacob Frankel for allegedly defrauding 35 investors of more than $8.7 million through a fund.
The Securities and Exchange Commission on Wednesday announced charges against Christopher Kenji Dinelli and Jacob David "Kobe" Frankel, accusing the two individuals of orchestrating a fraudulent investment scheme that exploited veterans and other investors, according to an agency release.
Regulators allege the pair raised more than $8.7 million from at least 35 investors through their fund, deliberately targeting military veterans as victims. The SEC did not detail the precise mechanics of the alleged scheme in the initial announcement, but such cases typically involve misrepresentations about how investor funds would be used or the anticipated returns.
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The charges reflect a broader enforcement priority at the commission, which has repeatedly moved against fraudsters who single out military communities — a demographic regulators and advocates say is disproportionately targeted due to steady income, discipline-based trust, and close-knit social networks that fraudsters can exploit through word-of-mouth.
Neither Dinelli nor Frankel had publicly responded to the allegations at the time of the announcement. The SEC's action could expose the defendants to civil penalties, disgorgement of alleged ill-gotten gains, and potential bars from working in the securities industry. Parallel criminal proceedings are possible in cases of this nature, though the release did not confirm any.
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