SEC Charges Two Men in $8.7M Fraud Targeting Veterans
The SEC has charged Christopher Dinelli and Jacob Frankel for allegedly defrauding 35 investors out of $8.7 million through a fraudulent fund.
The Securities and Exchange Commission on Tuesday announced fraud charges against Christopher Kenji Dinelli and Jacob David "Kobe" Frankel, accusing the two individuals of running a scheme that extracted more than $8.7 million from 35 investors, with veterans among those targeted.
According to the SEC, the pair operated through a fund called Beyond, which regulators allege was used as a vehicle to solicit and misappropriate investor funds. The charges reflect the agency's continued focus on schemes that prey on military veterans, a demographic regulators have identified as a frequent target of investment fraud.
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The SEC did not disclose the full details of how the alleged scheme was structured in the initial announcement, but the scale — more than $8.7 million raised from three dozen investors — suggests a sustained and organized operation rather than an isolated incident. Authorities are expected to outline the specific allegations in formal court filings.
Fraud schemes directed at veterans have drawn increasing scrutiny from federal regulators and law enforcement, as bad actors often exploit the trust networks and retirement savings common within military communities. The SEC has in recent years stepped up enforcement actions targeting affinity fraud, where perpetrators use shared identity or background to gain the confidence of victims.
The charges against Dinelli and Frankel are civil in nature under SEC jurisdiction, though parallel criminal referrals are possible depending on coordination with the Department of Justice. Neither defendant had entered a public response at the time of the announcement. Continue reading at Press Releases.
