A New York investment manager was indicted for defrauding investors in a pre-IPO scheme tied to drone-maker Anduril Industries. Giovanni Pennetta of Sestante Capital was arrested and charged with securities fraud. Anduril, valued at $30 billion, warned against investment offers not from them. Fraud risks increase as private tech firms gain prominence.

Anduril founder accused crypto firm AlphaTON of defrauding investors with a $30 million investment announcement, which was later canceled. AlphaTON and its CEO didn’t respond to comment requests. Cases like Pennetta’s and AlphaTON’s highlight the risk of scams targeting investors as private tech firms gain prominence and restrict public share distribution.

SEC charged three individuals in a scheme to fraudulently offer pre-IPO shares, generating $120 million. Three sales executives were arrested for alleged pre-IPO fraud. Private tech firms staying private longer make fraud and manipulation more rampant due to less public scrutiny and transparency. Companies like Anduril and SpaceX are at risk.

Read more at Yahoo Finance: US investment manager charged with Anduril pre-IPO fraud