Three individuals have pleaded guilty to conspiracy and fraud charges related to their roles in managing L & G Capital Corp., Legend Venture Partners LLC, and associated funds. The announcement was made by Jay Clayton, U.S. Attorney for the Southern District of New York. Mario Gogliormella, Steven Lacaj, and Karim Ibrahim (also known as Chris Hayes) admitted their involvement in fraudulent activities before federal judges Vernon S. Broderick and Henry J. Ricardo. Sentencing will take place at a later date.
Jay Clayton stated: “Our pre-IPO markets are important to investors, entrepreneurs, and our economy. Their integrity is critical to our continued leadership in technology, healthcare, energy, and other key industries. The defendants used high-pressure sales tactics, false and misleading disclosures, and hidden exorbitant fees to defraud retail investors seeking to invest in private companies that had not yet had initial public offerings. The women and men of our Office and our law enforcement partners continue to focus on our pre-IPO markets and our listed small-cap markets. Our message is clear: marketing and trading in securities of new and smaller companies does not give you a pass to commit fraud.”
According to court documents, Gogliormella, Lacaj, and Ibrahim orchestrated a scheme targeting non-professional investors through private funds called the “StraightPath Funds” and the “Legend Funds.” They promoted investment opportunities in privately held companies expected to go public soon—referred to as pre-IPO companies—and promised shares at advantageous prices ahead of anticipated public offerings.
However, these promises were false. The trio sold shares at inflated prices without informing investors about the markup or the nature of their compensation structure. Their misrepresentations allowed them to raise approximately $185 million from hundreds of investors. Nearly $28 million was diverted for personal use by the defendants due largely to excessive undisclosed markups; they also paid over $17 million in commissions using investor funds despite claiming otherwise.
The operation relied on aggressive sales tactics through call centers where salespeople cold-called potential investors using prepared scripts called “The Bible.” Referral agents received upfront commissions ranging from 10%–15% based on investments secured for the funds plus additional carried interest when positions were exited.
Initially acting as marketers for StraightPath Venture Partners Inc., the group shifted operations under Legend Venture Partners LLC after StraightPath ceased business following SEC subpoenas in early 2022. The principals behind StraightPath—Michael Castillero, Francine Lanaia, and Brian Martinsen—were previously prosecuted by this office with convictions reached in November 2025.
Gogliormella (48), Lacaj (28), both from New York State, and Ibrahim (36) from Queens each pled guilty to one count of conspiracy involving securities fraud, wire fraud, and investment adviser fraud (maximum five years’ imprisonment), along with one count of investment adviser fraud (also up to five years). Actual sentences will be determined by a judge.
Clayton acknowledged the work of the U.S. Postal Inspection Service as well as cooperation from the U.S. Securities and Exchange Commission which has filed a parallel civil case.
The prosecution is being managed by Assistant U.S. Attorneys Adam S. Hobson and Matthew R. Shahabian from the Securities and Commodities Fraud Task Force.
