Manager Of Investment Firm Pleads Guilty To Defrauding Investors In “Pre-IPO” Scheme

United States Attorney for the Southern District of New York, Jay Clayton, announced that GIOVANNI PENNETTA pled guilty today before U.S. Magistrate Judge Gary Stein to wire fraud for running a scheme to fraudulently induce multiple investment clients to part with millions of dollars in exchange for economic exposure to shares of non-public companies.

"Giovanni Pennetta, manager of a New York-based financial firm, raised millions of dollars by claiming he could give investors access to shares of private companies before they went public," said U.S. Attorney Jay Clayton. "That access did not exist. Instead, Pennetta diverted more than $10 million for his own benefit. Protecting the integrity of New York's public and private financial markets is a central part of our Office's mission, and for the safety of investors, we will continue to hold fraudsters like Pennetta criminally accountable."

According to the Indictment, plea agreement, and statements made in court:

Over a period of roughly six years, PENNETTA, the manager of a Manhattan-based investment adviser and private equity firm, engaged in a scheme to defraud investors who had entrusted him with millions of dollars to access shares of private companies. PENNETTA induced investors to contribute capital to his private equity fund by promising them economic exposure to shares of pre-IPO companies. Instead, PENNETTA misappropriated more than $10 million in investor money, moving much of it to his personal bank account.

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PENNETTA, 50, of New York, New York, and Italy, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. PENNETTA is scheduled to be sentenced on June 9, 2026.

Mr. Clayton praised the outstanding work of the FBI and the U.S. Securities and Exchange Commission.

This prosecution is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Alexandra N. Rothman and Samuel P. Rothschild are in charge of the prosecution.