ADVISER SWINDLES MILLIONS, SPENDS IT ON HIMSELF!

SEC v. Giovanni Pennetta — U.S. Securities and Exchange Commission Litigation Release No. 26572, dated June 24, 2026.

The SEC charged investment adviser Giovanni Pennetta with defrauding investors out of over $10.5 million. Pennetta falsely claimed access to shares of a private company, but instead misappropriated the funds for personal use and to repay other investors. He has settled the SEC's charges and pleaded guilty to wire fraud in a parallel criminal case.

In Plain English

Imagine someone told you they had a special ticket to buy a super popular toy before anyone else. You gave them money to buy it for you. But, they never actually bought the toy. Instead, they took your money to buy themselves other things or pay back someone else they owed. That's similar to what Giovanni Pennetta is accused of doing with investments, taking over $10.5 million from people by lying about having access to special shares, and then using the money for himself.

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. Targeting Investors From February 2021 through December 2025, Giovanni Pennetta sought out at least 6 investors. He specifically targeted those looking for a way to invest in a private company called Anduril Industries, Inc.
2. Making False Promises Pennetta convinced these investors to give him over $10.5 million for his fund, NextGenTech Investments LLC. He lied, telling them that he or his companies owned or had access to Anduril Industries' shares.
3. Misrepresenting Access In reality, neither Pennetta nor any of his companies ever held or had any access to the shares of Anduril Industries. The investors were led to believe they were buying into a specific opportunity that did not exist.
4. Diverting Funds Instead of using the $10.5 million to purchase Anduril stock as promised, Pennetta did not use any of the investor funds for that purpose.
5. Personal Misappropriation Pennetta then took over $6.2 million of the investors' money for his own personal use.
6. Repaying Other Investors Additionally, Pennetta used some of the misappropriated funds to repay an investor from a different NextGenTech offering, essentially using new investors' money to pay off obligations to prior investors.
7. Operating Through Entities Pennetta managed NextGenTech through an exempt reporting adviser called Sestante Capital LLC, where he served as Managing Member and Chief Investment Officer.

The Enforcement Action

On June 22, 2026, the SEC filed settled charges against New York-based investment adviser Giovanni Pennetta for defrauding investors out of over $10.5 million. Pennetta allegedly misrepresented his access to shares of a private company, misappropriating funds for personal use and to repay other investors. Pennetta consented to a judgment permanently enjoining him from violating federal securities laws and barring him from participating in the issuance, purchase, offer, or sale of any security, except for personal account transactions. The court will determine disgorgement, prejudgment interest, and penalties at a later date. In a parallel criminal action, Pennetta pleaded guilty to wire fraud on March 5, 2026.

Named in this action: Giovanni Pennetta.

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