Space Station Dreams Crash! SEC Charges Firm, CEO for $2.9M Investor Scam!

SEC v. Timothy E. Alatorre, Rhonda D. Stevenson, and Above: Space Development Corporation f/k/a Orbital Assembly Corporation — U.S. Securities and Exchange Commission Litigation Release No. 26655, dated September 29, 2026.

The SEC charged a space station startup, Above: Space Development Corporation, its CEO Rhonda D. Stevenson, and former COO Timothy E. Alatorre for misleading investors. The company raised approximately $2.9 million from over 1,400 retail investors by falsely claiming progress on space station projects, misrepresenting intellectual property, and fabricating partnerships. The defendants consented to final judgments including injunctions and penalties.

In Plain English

Imagine a company promised to build space stations really fast, like in a few years. They told investors they had special patents and big partnerships with famous space companies. But really, they didn't have enough people, skills, or money to do it, and the patents and partnerships weren't real. The company and its leaders got in trouble for telling these untrue stories to get money from people.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Company Formation and Fundraising Between January 2021 and March 2024, Above: Space Development Corporation (Orbital), a startup aiming to build space stations, conducted five securities offerings under Regulation Crowdfunding. These offerings successfully raised approximately $2.9 million from more than 1,400 retail investors.
2. Misleading Project Timelines In its offering materials, Orbital claimed it would design and construct large-scale space stations within four to six years. However, the company allegedly knew or should have known it lacked the necessary staffing, technical capabilities, and funding to realistically achieve these ambitious timelines.
3. False Intellectual Property Claims Orbital also made misrepresentations to investors regarding its intellectual property. The company allegedly misrepresented that it possessed several patents, creating a false impression of innovation and proprietary technology.
4. Fabricated Partnerships Furthermore, Orbital created a misleading impression of having partnerships with two well-known aerospace launch service companies. These alleged misrepresentations aimed to bolster the company's credibility and attractiveness to investors.
5. Executive Involvement Timothy E. Alatorre, the former COO, and Rhonda D. Stevenson, the current CEO, allegedly approved and helped create, draft, and disseminate these misleading offering materials. They are accused of knowing or should have known that the information provided to investors was false or misleading.
6. Company's Financial State At the time of the SEC's complaint, Orbital reportedly had no products or revenues, and its financial liabilities far exceeded its assets, highlighting the precarious state of the company despite the funds raised.

The Enforcement Action

On September 29, 2026, the SEC filed settled charges against Above: Space Development Corporation f/k/a Orbital Assembly Corporation (“Orbital”), its former COO Timothy E. Alatorre, and its current CEO Rhonda D. Stevenson. The company and individuals were accused of providing misleading information to investors about project status, intellectual property, and company partnerships. Without admitting the allegations, the defendants consented to final judgments permanently enjoining them from violating securities laws. Alatorre and Stevenson are subject to a three-year bar from participating in the issuance, purchase, offer, or sale of any security, except for their personal accounts. Alatorre agreed to pay a $50,000 civil penalty, while Stevenson's civil penalty was waived contingent upon the accuracy of her financial statement.

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