Investors thought they were buying pre-IPO OpenAI and SpaceX shares. Their cash went to strip clubs, Bloomingdale’s, and shopping on Amazon, SEC alleges
One fund manager allegedly paid his 4 a.m. strip club bill from fund capital after his card was declined.
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# Summary An SEC investigation alleges that a fund manager misappropriated investor capital intended for pre-IPO shares in OpenAI and SpaceX, instead using the funds for personal expenses including strip club visits, Bloomingdale's purchases, and Amazon shopping, with one instance involving a 4 a.m. strip club bill charged to fund capital after his personal card was declined. The case highlights a significant breach of fiduciary duty and fraud scheme involving high-profile private company investments, though specific dollar amounts and market impact figures were not disclosed in the article description
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