Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
Giovanni Pennetta, the manager of a financial firm based in New York, pleaded guilty to wire fraud in federal court for running a scheme that defrauded investors of millions of dollars. The plea was entered before U.S. Magistrate Judge Gary Stein.
According to prosecutors, Pennetta promised his clients access to shares of private companies before they went public. However, these opportunities did not exist. Instead, Pennetta diverted over $10 million from investors for his personal use.
“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.”
The fraudulent activity occurred over approximately six years while Pennetta managed an investment adviser and private equity firm in Manhattan. He persuaded clients to invest by promising economic exposure to pre-IPO company shares but used much of the money for himself.
Pennetta, who is 50 years old and holds residences in both New York and Italy, pleaded guilty to one count of wire fraud. This charge carries a maximum possible sentence of 20 years in prison. Sentencing is scheduled for June 9, 2026. The actual sentence will be determined by the judge.
U.S. Attorney Clayton commended the FBI and the U.S. Securities and Exchange Commission for their efforts in investigating the case.
The prosecution is being handled by the Securities and Commodities Fraud Task Force within the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Alexandra N. Rothman and Samuel P. Rothschild are leading the prosecution.
