Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
Giovanni Pennetta, manager of the Manhattan-based investment firm Sestante Capital LLC, has been charged with securities fraud, wire fraud, and aggravated identity theft. The charges were announced by Jay Clayton, United States Attorney for the Southern District of New York, and Christopher G. Raia, Assistant Director in Charge of the FBI’s New York Field Office. The indictment alleges that Pennetta defrauded multiple investors out of millions of dollars by promising them economic exposure to shares of non-public companies that he did not control.
Pennetta was arrested at John F. Kennedy International Airport and is scheduled to appear before U.S. Magistrate Judge Gary Stein. The case will be overseen by 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.”
“Giovanni Pennetta allegedly stole millions of dollars from clients attempting to expand their own businesses with lies about his economic access and influence,” said FBI Assistant Director in Charge Christopher G. Raia. “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, a private fund claiming to offer investors exposure to equity securities through membership interests in specific series controlled by the fund.
From 2019 onward, Pennetta allegedly misrepresented his ability to provide access to shares in private companies through NextGenTech Investments LLC. He is accused of accepting investor funds without providing promised investment interests because he lacked actual access to those shares.
Much of Pennetta’s alleged scheme focused on claims regarding Anduril Industries Inc., a defense technology company that is privately held. He told victims he could give them exposure to Anduril shares via purchases in NextGenTech series tied purportedly to Anduril investments and provided falsified documents supporting these claims.
In reality, according to authorities, neither Pennetta nor NextGenTech had any connection or economic exposure to Anduril shares; instead, much of the money collected from victims was transferred into Pennetta’s personal bank account.
Pennetta faces up to 20 years each for securities fraud and wire fraud charges; aggravated identity theft carries a mandatory two-year consecutive sentence if convicted. Sentencing decisions are ultimately at the discretion of the judge.
U.S. Attorney Jay Clayton commended both the FBI and U.S. Securities and Exchange Commission for their work on this case.
The prosecution is being handled by Assistant U.S. Attorneys Alexandra N. Rothman and Samuel P. Rothschild from the Securities and Commodities Fraud Task Force.
