Manager of a Manhattan-based investment firm faces federal charges for allegedly defrauding investors through a long-running pre-IPO investment scheme

New York – Federal prosecutors in New York have unsealed a sweeping criminal case against the manager of a Manhattan-based investment firm, accusing him of running a years-long scheme that promised wealthy clients access to coveted pre-IPO shares that prosecutors say never existed.

The announcement was made by the United States Attorney for the Southern District of New York, Jay Clayton, alongside Christopher G. Raia, Assistant Director in Charge of the FBI’s New York Field Office. According to authorities, the indictment charges GIOVANNI PENNETTA, the managing member of Sestante Capital LLC, with securities fraud, wire fraud, and aggravated identity theft stemming from what investigators describe as a calculated effort to deceive investors out of millions of dollars.

PENNETTA, 50, who holds ties to both New York and Italy, was arrested Sunday afternoon at John F. Kennedy International Airport. He is scheduled to be presented before U.S. Magistrate Judge Gary Stein, while the case itself has been assigned to U.S. District Judge Jed S. Rakoff.

At the heart of the case is Sestante Capital LLC, a Manhattan-based investment adviser and private equity firm managed by PENNETTA. Prosecutors allege that Sestante served as the managing member and investment adviser to NextGenTech Investments LLC, a private fund that claimed to give investors economic exposure to equity in non-public companies through specialized membership interests.

From 2019 through the present, PENNETTA allegedly told clients that he had unique access to shares in private companies that had not yet gone public. These kinds of investments, often referred to as “pre-IPO” opportunities, are highly sought after by investors hoping to buy in early before a company enters public markets. Prosecutors say PENNETTA used this appeal to repeatedly convince victims to send him large sums of money.

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However, according to the indictment, those promises were false. Authorities allege that while investors transferred millions of dollars to PENNETTA or entities he controlled, they never received the economic exposure they were promised. Investigators say PENNETTA did not have access to the shares he claimed to control and knowingly misled clients when he said otherwise.

“As alleged, Giovanni Pennetta took advantage of investors by promising access to private, pre-IPO companies he did not control and never had access to,” said U.S. Attorney Jay Clayton. “American investors deserve honesty in all markets, including the private investment markets. When someone lies to investors and pockets their money instead, this Office and our law enforcement partners will step in to protect investors and the integrity of our markets.”

A significant portion of the alleged scheme focused on Anduril Industries, Inc., a private defense technology company that has drawn major interest from investors in recent years. Prosecutors say PENNETTA repeatedly told victims that he had connections to individuals associated with Anduril and could provide them with exposure to its shares through specially created series within NextGenTech.

To support these claims, PENNETTA allegedly supplied victims with falsified documents that appeared to show both his access to Anduril shares and the fund’s supposed exposure to the company. These materials, according to prosecutors, were designed to give the investments an appearance of legitimacy and reassure clients that their money was being placed exactly where promised.

The indictment states that these representations were entirely untrue. In reality, prosecutors say, PENNETTA had no access to Anduril shares, and NextGenTech did not hold any economic exposure to the company. Despite this, investors paid millions of dollars based on PENNETTA’s assurances, receiving nothing in return that reflected ownership or exposure to the promised assets.

Instead, investigators allege that PENNETTA diverted much of the investor money into his personal bank account. Prosecutors say this misuse of funds is central to the fraud and illustrates how the scheme benefited PENNETTA personally rather than serving investor interests.

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“Giovanni Pennetta allegedly stole millions of dollars from clients attempting to expand their own businesses with lies about his economic access and influence,” said FBI Assistant Director in Charge Christopher G. Raia. “Pennetta allegedly abused his managerial position to attract potential victims before moving their intended investment funds from their wallets to his own. The FBI maintains its unwavering stance against any business managers deceiving others to selfishly enrich themselves.”

PENNETTA now faces serious legal consequences. The securities fraud and wire fraud charges each carry a maximum potential sentence of 20 years in prison. In addition, the aggravated identity theft charge carries a mandatory consecutive sentence of two years. Prosecutors emphasized that these penalties are set by Congress and that any final sentence will ultimately be determined by the judge overseeing the case.

Federal officials also credited the investigation and coordination that led to the charges. Mr. Clayton praised the work of both the FBI and the U.S. Securities and Exchange Commission, highlighting the role of interagency cooperation in uncovering complex financial schemes that target private investors.

The case is being prosecuted by the Securities and Commodities Fraud Task Force within the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Alexandra N. Rothman and Samuel P. Rothschild are leading the prosecution.

As the case moves forward in federal court, prosecutors say it serves as a reminder that private investment markets are not beyond scrutiny. Authorities stressed that claims of exclusive access and insider connections should be approached with caution, and that those who exploit trust for personal gain will face aggressive enforcement.

Further court proceedings are expected in the coming days as PENNETTA makes his initial appearance and the case advances through the federal judicial system.