SEC settles charges over SpaceX, Klarna, pre-IPO share fraud

Aug 10 : The U.S. Securities and Exchange Commission on Monday brought settled charges of fraud against Adit Ventures Management, its founder and three partners in connection with pre-IPO investments in companies including Klarna and SpaceX, the agency said in a release. The SEC alleged that the investment adviser had used "false claims and promises" to solicit investments in Adit-managed funds and used client money for the firm's own benefit, including by taking unsecured loans on favorable terms without disclosure to clients.Adit Ventures, without admitting the allegations, agreed to a consent order which would include payments of disgorgement and a civil penalty, the SEC said. The consent order requires approval by a federal judge. Adit Ventures CIO and founder Eric Munson denied the ch