Litigation Releases (Christopher Kenji Dinelli a/k/a Kenji Dinelli and Jacob David Frankel a/k/a Kobi Frankel)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26658 / September 30, 2026

Securities and Exchange Commission v. Christopher Kenji Dinelli, et al., No. 26-cv-8564 (S.D.N.Y. filed Sept. 29, 2026)

SEC Charges Two Individuals with Orchestrating Fraud Scheme that Targeted Veterans

The Securities and Exchange Commission today announced charges against Christopher Kenji Dinelli and Jacob David "Kobe" Frankel for allegedly orchestrating a fraud scheme that raised more than $8.7 million from 35 investors through their fund, Beyond Alpha Ventures LLC (BAV) and advisory firm, Beyond Equity LLC.

According to the complaint, Dinelli, a former naval officer, targeted veterans as well as individuals who provide medical services to veterans, telling them and other investors that their money would be invested in the BAV fund that was represented to have an options trading strategy and/or affiliated special purpose vehicles (SPVs) that purported to hold pre-IPO securities in two private companies. To induce these investments, the defendants allegedly repeatedly made material misrepresentations concerning, among other things, the past performance of the fund and pre-IPO investments, the amount of assets under management, and BAV's client base and current and past holdings. Despite consistent losses in the fund, the complaint alleges that Dinelli and Frankel continued to tout wildly successful returns of up to 153% and a sprawling client base, including in a document titled, "Trading Fund Overview 2024," which claimed a "153% Net Return on Investment."

The complaint also alleges that without investors' knowledge, the defendants diverted money provided by pre-IPO securities investors to the fund's brokerage accounts, where the vast majority of it was lost due to failed options trades. In addition, the complaint alleges Dinelli misappropriated over $1 million and Frankel misappropriated over $340,000.

The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, charges Dinelli and Frankel with violating the antifraud provisions of the Securities Act of 1933, the Securities Exchange Act of 1934, and, additionally as to Frankel, the Investment Advisers Act of 1940. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against both defendants.

In a parallel criminal action concerning the same conduct, the U.S. Attorney's Office for the Southern District of New York announced criminal charges against Dinelli and Frankel.

The SEC's investigation was conducted by William Conway, Douglas Smith, and Sandeep Satwalekar, all of the SEC's New York Regional Office. The case is being supervised by Thomas P. Smith, Jr. The SEC's litigation is being handled by Chevon Walker and Mr. Conway. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York and the U.S. Postal Inspections Service.