SEC v. 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, dated September 30, 2026.
Named in the SEC’s action
- Christopher Kenji Dinelli a/k/a Kenji Dinelli and Jacob David Frankel a/k/a Kobi Frankel
The SEC charged Christopher Kenji Dinelli and Jacob David Frankel for orchestrating a fraudulent scheme that defrauded over 35 investors out of more than $8.7 million. They allegedly targeted veterans and medical professionals, making false claims about investment performance and misappropriating funds for personal use and failed options trades.
In Plain English
Imagine two people who promised to invest your money in special opportunities, like buying pieces of companies before they become famous. They told investors their money was growing a lot, even though it was actually losing money. They even took some of the money for themselves and lost the rest on risky bets. The SEC stepped in to stop them and get money back for the people they tricked.
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
- Raising Funds for 'Beyond Alpha Ventures' Between April 2024 and February 2026, Christopher Kenji Dinelli and Jacob David Frankel, through their companies Beyond Alpha Ventures LLC (BAV) and Beyond Equity LLC, raised over $8.7 million from 35 investors. They promised investments in a fund with an options trading strategy and/or special purpose vehicles (SPVs) holding pre-IPO securities.
- Targeting Veterans and Medical Professionals Dinelli, a former naval officer, specifically targeted veterans and individuals providing medical services to veterans, including those affiliated with the U.S. Department of Veterans Affairs Clinic in Pensacola, Florida. He presented himself as someone who understood their needs and offered investment opportunities.
- Fabricating Investment Performance Despite the BAV fund consistently experiencing losses, the defendants falsely claimed wildly successful returns. A document titled 'Trading Fund Overview 2024,' distributed by Frankel, touted a '153% Net Return on Investment' over four years and claimed service to over 1,340 clients.
- Misrepresenting Fund Status In reality, the Trading Fund had fewer than 40 investors, mostly from the U.S., and suffered net investment losses of over 200% during its 13 months of trading from 2024 to 2025. Investors were provided with false account statements showing positive returns.
- Misdirecting Pre-IPO Investment Funds Approximately $6 million of the raised funds were designated for pre-IPO securities. However, instead of directing these funds to third-party administrators for SPVs as promised, the defendants had investors send money to their controlled bank accounts.
- Losing Pre-IPO Funds in Options Trades The defendants commingled Pre-IPO Investor funds with Trading Fund assets and then directed the vast majority of these funds into the Trading Fund's brokerage accounts. There, the money was lost due to failed options trades controlled by Frankel.
- Misappropriating Investor Funds Beyond losing investor money through failed trades, Dinelli misappropriated at least $1 million of investor funds for personal expenses. Frankel also misappropriated over $340,000 of investor funds for his personal use.
- Further Misrepresentations on Pre-IPO Investments Even when Frankel did invest Pre-IPO Investor funds into pre-IPO securities, he did so on behalf of BAV, not the promised SPVs or investors directly. This potentially diluted any investor interest and deviated from promises made to certain Pre-IPO Investors.
The Enforcement Action
SEC charges Christopher Kenji Dinelli and Jacob David Frankel with orchestrating a fraud scheme that raised over $8.7 million from 35 investors. The defendants allegedly targeted veterans and medical professionals, making material misrepresentations concerning the fund's performance, assets under management, and holdings. They also allegedly diverted investor funds to cover consistent losses in the fund, engage in failed options trades, and for personal use. The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties. A parallel criminal action has been announced by the U.S. Attorney's Office for the Southern District of New York.