On August 10, 2026, the SEC announced that it charged New York-based investment adviser Adit Ventures Management LLC, its CEO Eric Munson (“Munson”), and three affiliated general partners, Adit Ventures LLC; Adit Ventures II LLC; and Adit Ventures III LLC (the “General Partners”), for allegedly defrauding investors and client funds in connection with investments in pre-IPO shares, such as SpaceX and Klarna, including by misappropriating advisory client assets and charging millions in undisclosed fees.
According to the SEC’s complaint, from at least April 2019 through December 2024, the defendants used false claims and promises to persuade investors to contribute capital to Adit-managed funds, including Munson soliciting an investor by falsely claiming that a fund owned shares of stock of a private, pre-IPO company. Allegedly, the defendants regularly used client capital for their own benefit, including by taking unsecured loans from funds on favorable terms, and these transactions were not authorized by fund documents and generally not disclosed to investors.
The complaint also alleges that the defendants violated their fiduciary duties by buying pre-IPO shares and then causing client funds to buy those shares at a higher price, while misrepresenting the true cost of acquiring the shares to investors and without obtaining the requisite consent for these principal transactions; overcharging their client funds millions in unauthorized “acquisition fees”; and improperly pledging client assets as collateral for a $10 million line of credit.
Munson, Adit Ventures Management, and the General Partners were charged with violating the antifraud provisions of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940. Adit Ventures Management also was charged with violating the registration provisions of the Investment Advisers Act.
Without admitting the allegations in the complaint, the defendants consented to the entry of a judgment, subject to court approval. The proposed relief includes, among other things, disgorgement with prejudgment interest and a civil penalty in an amount to be determined by the court. Munson also agreed to a forthcoming associational bar against him with a right to apply for reentry after three years.
Source: SEC.gov
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Kehoe Law Firm, P.C. is a nationally-recognized, plaintiff-side class action law firm representing investors and consumers in matters involving securities fraud, corporate misconduct, mergers and acquisitions, antitrust violations, whistleblower claims, data breaches, consumer fraud, employment law violations, and retirement-plan mismanagement. Its attorneys have served as lead or co-lead counsel in major securities cases, recovering more than $10 billion for institutional and individual investors.
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