SEC Charges Meyer Global Management with Investor Fraud

Meyer Global Management LLC and its CEO, Owen E. H. Meyer, have been charged by the Securities and Exchange Commission (SEC) with defrauding investors.

The charges, filed in the U. S. District Court for the Southern District of New York, relate to investments in SpaceX and other pre-IPO securities.

According to the SEC's complaint, the fraudulent activities occurred from at least December 2021 to the present. The defendants allegedly misappropriated client assets from certain MGM-managed funds to cover Meyer’s personal expenses. The SEC claims that the defendants concealed their actions by sending inflated account statements to investors.

In one scheme involving three MGM-managed funds, the defendants are accused of misappropriating portions of investor proceeds. They allegedly required investors to sign releases accepting distributions of amounts that were less than what they were owed. Additionally, the defendants failed to address a capital call deficiency owed by an MGM-managed fund connected to its investment in SpaceX, resulting in the forfeiture of nearly $3,000,000.

The SEC's complaint charges the defendants with violating antifraud provisions of the Advisers Act of 1940. The SEC is seeking permanent injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against both Meyer Global Management and Owen E. H.

Meyer. A conduct-based injunction against Meyer is also being sought.

Corey A. Schuster, Chief of the Enforcement Division’s Asset Management Unit, emphasized the gravity of the situation, stating, "This case is a reminder that fraudsters can exploit the allure of exclusive, high-return pre-IPO access to take advantage of retail investors." The SEC's actions underscore the importance of fiduciary duty and the severe consequences of violating investor trust.

The charges against Meyer Global Management and Owen E.H. Meyer are allegations, and the defendants are presumed innocent unless proven guilty. The case highlights the SEC's ongoing commitment to protecting investors and maintaining the integrity of the financial markets.