According to Fortune, the U.S. Securities and Exchange Commission (SEC) has filed lawsuits against two private equity fund cases, accusing the fund advisors of raising funds under the pretense of investing in pre-IPO shares of popular tech companies like OpenAI and SpaceX, while allegedly providing false information to investors and misappropriating some of the funds. The SEC claims that Meyer Global Management and its head, Owen Meyer, raised at least $18.5 million from nearly 100 investors to purchase shares of pre-IPO companies, but misappropriated at least $1.27 million for personal expenses, entertainment costs, and personal investments. The SEC alleges that Meyer established a fund intended for investing in OpenAI and SpaceX shares, but some of the funds did not actually hold the relevant assets. In another case, the SEC and federal prosecutors accused Beyond Alpha Ventures' leaders, Christopher Dinelli and Jacob Frankel, of raising over $8.7 million from 35 investors while falsely promoting that the fund held shares in companies like SpaceX and xAI. The SEC stated that the two provided false investment reports, with some of the funds being used for options trading, film investments, and personal use. The SEC emphasized that the accused tech companies and their management have not been found to have engaged in any wrongdoing. The regulatory agency has been increasingly vigilant in monitoring investment products that promote 'acquiring shares of popular private companies before IPOs' and has initiated multiple enforcement actions against related private equity fund advisors.