SEC charges Beyond Alpha Ventures executives over alleged scheme targeting veterans

The Securities and Exchange Commission charged two Beyond Alpha Ventures executives in New York federal court on September 30, 2026, alleging an investment scheme that raised more than $8.7 million from 35 investors, including veterans and people who provide them medical services. Christopher Kenji Dinelli and Jacob David ‘Kobe’ Frankel face civil fraud allegations over what investors were told about a trading fund and proposed pre-IPO investments.

The charges matter to investors because the SEC alleges money intended for pre-IPO securities was instead moved into the fund’s brokerage accounts without investors’ knowledge. The regulator says most of that money was lost through unsuccessful options trades. Those are allegations in a filed complaint, not findings of liability.

What the SEC alleges about the investment pitches

According to the SEC’s announcement, investors were told their money would go into a Beyond Alpha Ventures fund presented as having an options trading strategy, or into affiliated special purpose vehicles said to hold pre-IPO securities in two private companies. The regulator says Dinelli, a former naval officer, approached veterans, people who provide medical services to veterans and other investors.

The SEC alleges the defendants repeatedly gave investors misleading accounts of the fund’s past performance, assets under management, client base and holdings. It says a document titled ‘Trading Fund Overview 2024’ claimed a ‘153% Net Return on Investment’ even as the fund was consistently losing money. The stated return is a claim the regulator attributes to that document, not a verified investment result.

Civil charges and a separate criminal case

The SEC says its complaint, filed in the U.S. District Court for the Southern District of New York, charges both men under antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Frankel also faces a charge under the Investment Advisers Act of 1940. The agency seeks permanent injunctions, disgorgement with prejudgment interest and civil penalties against both defendants.

Federal prosecutors announced on September 29 that an indictment had been unsealed in a separate criminal case concerning the same alleged conduct. According to the Justice Department’s announcement, Dinelli and Frankel were charged with securities fraud, wire fraud and conspiracy. Frankel also faces investment adviser fraud and false SEC reporting charges. The indictment contains accusations; both defendants are presumed innocent unless proven guilty.

Prosecutors allege the conduct ran from 2023 through February 2026 and involved more than $8.7 million from approximately 35 investors. Their account describes different pitches: some investors were allegedly told they were buying pre-IPO shares directly, while others were told a third-party administrator would create a special purpose vehicle to hold funds and oversee investments.

The Justice Department further alleges that one offering was oversubscribed and that some excess money went toward fund margin calls and losing options trades. Prosecutors say the fund had no proprietary trading algorithm and only a limited trading history. They allege a single margin options trade lost about $1.9 million, and that fabricated statements and screenshots displayed double- and triple-digit returns to conceal losses.

What the earlier securities filing shows

A Form D submitted to the SEC on May 23, 2024 identifies Beyond Alpha Ventures as a Wyoming limited liability company formed in 2023. It lists Frankel as chief executive officer and an executive officer. The filing describes a proposed exempt securities offering with a $25,000 minimum investment, and says the first sale had yet to occur when it was submitted.

That filing is a record of information submitted by the issuer, not an SEC endorsement of the business or its investment claims. The form itself cautions that the regulator has not necessarily reviewed the information or determined whether it is accurate and complete. Its figures describe the position reported on the filing date, rather than the amount prosecutors and the SEC say was ultimately raised.

What remains unresolved

The SEC’s announcement sets out the civil remedies it is seeking, while the criminal case proceeds separately. The Justice Department said the criminal case was assigned to U.S. District Judge Jesse M. Furman. Neither announcement establishes a verdict or a finding that the defendants are liable for the conduct alleged.

A response from Dinelli or Frankel to the new civil and criminal allegations was not established in the published material reviewed for this report. The SEC announcement also does not say how much, if any, of the money investors provided may be recovered. The outcome of the charges and the amount of any recovery remain open questions.