Giovanni Pennetta, the manager of Sestante Capital LLC, a Manhattan-based investment adviser and private equity firm, has been charged with securities fraud, wire fraud, and aggravated identity theft. The charges stem from an alleged scheme in which Pennetta is accused of convincing multiple clients to invest millions of dollars in exchange for economic exposure to shares of non-public companies.
Pennetta was arrested at John F. Kennedy International Airport and will appear before U.S. Magistrate Judge Gary Stein. The case is assigned to U.S. District Judge Jed S. Rakoff.
“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.”
FBI Assistant Director in Charge Christopher G. Raia stated: “Giovanni Pennetta allegedly stole millions of dollars from clients attempting to expand their own businesses with lies about his economic access and influence. 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.”
According to the indictment unsealed in Manhattan federal court, Pennetta managed Sestante Capital LLC as well as NextGenTech Investments LLC (“NextGenTech”), a private fund that purportedly offered investors exposure to equity securities through membership interests in series controlled by the fund.
From 2019 onward, Pennetta is alleged to have misrepresented his ability to provide access to shares of private companies through NextGenTech. Investors who transferred money did not receive the promised investment interests because Pennetta did not actually have access to those shares.
Many misrepresentations reportedly focused on Anduril Industries, Inc., a private defense technology company. By claiming connections with individuals associated with Anduril, Pennetta offered victims supposed exposure via membership interests in NextGenTech series linked with Anduril shares. He also provided falsified documents purporting such access.
In reality, according to authorities, neither Pennetta nor NextGenTech had any access or exposure to Anduril shares; instead, much of the invested funds were moved into Pennetta’s personal account.
Pennetta faces charges that each carry significant penalties: securities fraud and wire fraud each carry up to 20 years in prison; aggravated identity theft carries a mandatory consecutive sentence of two years.
The prosecution is being led by Assistant U.S. Attorneys Alexandra N. Rothman and Samuel P. Rothschild from the Securities and Commodities Fraud Task Force at the U.S. Attorney’s Office for the Southern District of New York.
U.S. Attorney Jay Clayton commended both the FBI and the U.S. Securities and Exchange Commission for their work on this case.
