Federal Indictment Alleges Multi-Year Private Securities Fraud Scheme
Federal prosecutors in the Southern District of New York have charged Giovanni Pennetta with multiple felony offenses arising from an alleged multi-year investment fraud scheme involving private company securities. According to the indictment, Pennetta used his position as an investment adviser and fund manager to solicit millions of dollars from investors by falsely claiming he could provide them with economic exposure to shares of high-profile private companies, when in fact no such access existed.
USA v. Giovannie Pennetta – Indictment
Explanation of Indictment Involving Sestante Capital LLC
The indictment alleges that, from at least 2019 through 2025, Pennetta repeatedly represented to investors that he had access to shares of private companies and could offer indirect exposure through investment vehicles he controlled. These vehicles included entities he managed, such as Sestante Capital LLC and NextGenTech Investments LLC, which purported to offer investors exposure to private equity securities through membership interests in fund “series.” Prosecutors allege that these representations were materially false and misleading.
As described in the charging document, investors transferred funds to Pennetta based on assurances that their money would provide exposure to specific private companies. In reality, the indictment alleges, Pennetta did not have access to the shares he promised, and the investment interests sold did not provide the economic exposure represented. Instead, a substantial portion of investor funds was allegedly diverted to Pennetta’s personal bank accounts, resulting in millions of dollars in investor losses.
The indictment highlights one example involving Anduril Industries, a private defense technology company. Beginning in or about 2021, Pennetta allegedly targeted investors interested in Anduril by falsely claiming that he had access to Anduril shares. Prosecutors allege that Pennetta reinforced these claims through in-person meetings, phone calls, and electronic communications, and by providing documents that purported to show his access to Anduril stock and NextGenTech’s exposure to that company. According to the indictment, these documents and representations were false, and investors ultimately received no economic exposure to Anduril whatsoever.
Based on this conduct, the grand jury indicted Pennetta with securities fraud, wire fraud, and aggravated identity theft. The securities fraud count alleges violations of federal securities laws through deceptive devices, material misstatements and omissions, and a course of business operating as a fraud on investors. The wire fraud count alleges the use of interstate electronic communications to execute the scheme. The aggravated identity theft charge alleges that Pennetta unlawfully used the means of identification of another person during and in relation to the wire fraud offense.
The indictment also includes forfeiture allegations, seeking the recovery of property and funds traceable to the alleged fraud. If the directly traceable proceeds cannot be located, prosecutors indicate they will seek substitute assets up to the value of the alleged criminal proceeds. As with all criminal cases, the charges are allegations only, and Pennetta is presumed innocent unless and until proven guilty in a court of law. The case nonetheless serves as a reminder of the significant legal risks associated with private securities offerings, the heightened scrutiny of representations made to investors, and the serious criminal consequences that can arise when investment advisers are accused of misusing investor trust and funds.