Fund Manager LOOTED Millions, Lied About SpaceX Shares!

SEC v. Eric L. Munson; Adit Ventures Management, LLC, Adit Ventures, LLC, Adit Ventures II, LLC, and Adit Ventures III, LLC — U.S. Securities and Exchange Commission Litigation Release No. 26605, dated August 10, 2026.

The SEC charged Adit Ventures Management, its CEO Eric Munson, and affiliated general partners for defrauding investors. They allegedly misappropriated client assets, charged millions in undisclosed fees, and misrepresented investment costs for pre-IPO shares like SpaceX and Klarna. The defendants consented to a judgment including disgorgement, prejudgment interest, and a civil penalty, subject to court approval.

In Plain English

Imagine you give your friend money to invest in cool private companies, like SpaceX before it goes public. Your friend promises to use the money wisely, but instead, they secretly take some of that money for themselves or charge you hidden fees. They also might lie about how much they paid for the shares, making it seem like a better deal for you than it really was. The SEC stepped in because this friend wasn't being honest with your money.

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. Soliciting Investors with False Promises From April 2019 through December 2024, Eric Munson and his companies solicited investors by falsely claiming they would provide access to shares of private, pre-IPO companies like SpaceX and Klarna. In one instance, Munson secured over $15 million from an investor by falsely stating that a controlled investment vehicle already owned shares of a private company, when it did not.
2. Misrepresenting Personal Investment In another instance, Munson persuaded an investor to contribute $5 million into a fund by falsely claiming he would personally invest $5 million of his own money into the same fund, a promise that was not fulfilled.
3. Misusing Fund Capital Instead of immediately deploying investor capital for promised pre-IPO opportunities, defendants allegedly used investor money for their own benefit. This included taking unsecured loans from funds on favorable terms, which were not authorized by fund documents and rarely disclosed to investors.
4. Profiting from Share Markups A General Partner would use capital borrowed from a client fund (or its own money) to buy shares of a target pre-IPO company. This entity would then cause a client fund to purchase those same shares at a higher price, with the defendants pocketing the difference.
5. Concealing Acquisition Costs Defendants misrepresented the true cost of acquiring pre-IPO shares to investors, deceptively inflating the reported 'Original Purchase Price' to hide the markup and their profit.
6. Charging Unauthorized Fees The defendants also charged 'Acquisition Fees' to client funds, even when fund agreements did not authorize such fees or when they had previously agreed not to charge them in side letters or subscription agreements.
7. Pledging Client Assets The defendants allegedly improperly pledged client assets as collateral for a $10 million line of credit, which was then used in part to pay off their own obligations.
8. Failing to Register Adit Ventures Management also allegedly failed to register as an investment adviser, a violation of the Investment Advisers Act of 1940.

The Enforcement Action

The SEC charged Adit Ventures Management LLC, its CEO Eric Munson, and affiliated general partners Adit Ventures LLC, Adit Ventures II LLC, and Adit Ventures III LLC with defrauding investors and client funds. The complaint alleged misappropriation of advisory client assets and charging millions in undisclosed fees in connection with investments in pre-IPO shares. Without admitting the allegations, the defendants consented to a judgment permanently enjoining them from violating federal securities laws, subject to court approval. They agreed to pay disgorgement with prejudgment interest and a civil penalty, with amounts to be determined by the court. Munson also agreed to a forthcoming associational bar with a right to apply for reentry after three years. The SEC appreciated the assistance of the Jersey Financial Services Commission.

Named in this action: Eric L. Munson, Adit Ventures Management, LLC, Adit Ventures, LLC, Adit Ventures II, LLC, Adit Ventures III, LLC.

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