SPACE CEO LIED ABOUT NATIONAL SECURITY, FACES $2 MILLION FINE!

SEC v. Mikhail Kokorich — U.S. Securities and Exchange Commission Litigation Release No. 26180, dated November 25, 2024.

The SEC charged Mikhail Kokorich, former CEO of Momentus, Inc., with making misleading statements about the company's technology and national security risks before its de-SPAC transaction. Without admitting guilt, Kokorich agreed to a $2 million civil penalty, a five-year ban from serving as an officer or director of public companies, and permanent injunctions against future violations.

In Plain English

Imagine a CEO told everyone his company's new technology was amazing and safe, but he wasn't being totally honest. The SEC found out and said this wasn't okay. The CEO agreed to pay a fine and was banned from being a top boss at a public company for a while to ensure he doesn't mislead people again.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Misleading Statements on Technology Mikhail Kokorich, as CEO of Momentus, Inc., allegedly made misleading statements about the company's technology in the period leading up to its de-SPAC transaction on August 11, 2021.
2. Concealing National Security Risks Kokorich also allegedly made misleading statements concerning national security risks associated with the company's operations or technology, which were material to investors.
3. Misrepresenting Immigration Status In addition to business-related claims, Kokorich is accused of misrepresenting his immigration status, which could also be a factor in national security assessments and investor due diligence.
4. De-SPAC Transaction These alleged misrepresentations occurred in the lead-up to Momentus's de-SPAC (Direct Special Purpose Acquisition Company) transaction, a critical event for the company's public listing and capital raising.

The Enforcement Action

On November 25, 2024, the U.S. District Court for the District of Columbia entered a final consent judgment against Mikhail Kokorich, the former CEO of Momentus, Inc. The judgment resolves SEC allegations that Kokorich made misleading statements about the company’s technology and national security risks prior to Momentus’s de-SPAC transaction. Without admitting or denying the allegations, Kokorich consented to permanent injunctions against violations of Section 17(a)(2) and (3) of the Securities Act of 1933, a $2 million civil penalty, and a five-year bar from serving as an officer or director of a public company.

Named in this action: Mikhail Kokorich.

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