Christopher Dinelli, a 34-year-old former naval officer, and Jacob Frankel, 32, raised more than $8.7 million from 35 investors through their firm Beyond Alpha Ventures while falsely telling them its funds held pre-IPO shares of SpaceX and xAI. The SEC and federal prosecutors charged both men on September 30, 2026, alleging the funds never held the positions they advertised.
What happened
The SEC filed its civil complaint in federal court in Manhattan, and the U.S. Attorney’s Office announced parallel criminal charges of securities fraud, wire fraud, and conspiracy. Regulators allege the pair pitched investors on a trading fund advertised with 153 percent net returns plus pre-IPO stakes in crypto exchange Kraken and AI software firm SandboxAQ, the company chaired by former Google CEO Eric Schmidt.
None of those underlying companies is alleged to have engaged in wrongdoing. The case targets only the fund managers and the statements they made to investors.
Key facts in the complaints
The SEC and DOJ filings quantify the scheme across the firm’s trading fund and its pre-IPO vehicles. The figures below come from the regulators’ filings.
| Metric | Figure |
|---|---|
| Investors defrauded | 35 |
| Amount raised | More than $8.7 million |
| Trading fund performance | Lost money in 13 of 14 months |
| Raised for pre-IPO deals | About $6 million |
| Share actually invested in pre-IPO deals | Less than half |
| Misappropriated by Dinelli | More than $1 million |
| Misappropriated by Frankel | More than $340,000 |
| Margin trading losses by Frankel | $2.8 million, including $1.9 million on one options trade |
Beyond Alpha Ventures’ impact on investors
The trading fund was marketed on performance that did not exist. It lost money in 13 of 14 months, according to the complaint. Less than half of the nearly $6 million raised for pre-IPO deals actually went into them, and much of the rest moved into options trading and was lost.
Investors received fake account statements. The complaint describes one statement Dinelli hand-delivered to a Navy veteran couple claiming their $750,000 investment had grown to $4.1 million.
Personal enrichment followed the same pattern. The SEC alleges Dinelli misappropriated more than $1 million, including a $250,000 investment in a documentary film. Frankel allegedly took more than $340,000, partly to trade in accounts he controlled and partly to pay his criminal defense lawyer.
What investors were told versus the alleged reality
| Claim made to investors | Alleged reality |
|---|---|
| Funds held SpaceX and xAI stakes | No holdings in either company |
| Trading fund returned 153 percent | Fund lost money in 13 of 14 months |
| $750,000 had grown to $4.1 million | Fake statement hand-delivered to a Navy veteran couple |
Red flags investors missed
- Outsized return claims. A 153 percent net return pitch is far beyond what established funds deliver, and it should have prompted verification.
- Unverifiable pre-IPO holdings. Investors had no independent way to confirm the funds actually held SpaceX, xAI, Kraken, or SandboxAQ positions.
- Statements sourced from the manager. Account statements arrived from the fund itself rather than an independent custodian, a pattern seen in most fund frauds.
- Hidden history. Frankel faces separate false-statement counts over SEC filings that allegedly concealed a prior conviction and a FINRA suspension.
What investors should do
Anyone who invested in Beyond Alpha Ventures funds should preserve every account statement, subscription document, wire record, and message from the managers. Criminal and civil proceedings move on separate tracks, and restitution ordered in a criminal case can lag well behind civil recovery.
How to recover your losses
Fraud victims are not limited to waiting for prosecutors. Civil claims and arbitration against fund managers, advisers, and affiliated entities can sometimes recover losses faster. Time limits apply, so an early review of account records matters.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in fraud recovery cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
- Main Phone: 1-888-885-7162
- website for a free consultation
Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.
Frequently asked questions about the Beyond Alpha Ventures case
Who is Beyond Alpha Ventures?
Beyond Alpha Ventures is the fund firm founded by Christopher Dinelli and Jacob Frankel, whom the SEC and DOJ charged on September 30, 2026 with defrauding 35 investors of more than $8.7 million.
Did the funds actually hold SpaceX and xAI shares?
No. The SEC complaint alleges the funds never held stakes in either company, and investor money went elsewhere.
What can Beyond Alpha Ventures investors do now?
Gather all statements and wire records, monitor both the criminal and civil cases, and consider a consultation with a securities attorney about separate recovery claims.
This article is for informational purposes only and does not constitute legal or investment advice.
