The Securities and Exchange Commission (SEC) announced on September 30, 2026, charges against Christopher Kenji Dinelli, a former naval officer, and Jacob David “Kobe” Frankel for a financial fraud exceeding $8.7 million.
According to the complaint filed in the U.S. District Court for the Southern District of New York, the two men raised funds from 35 investors, primarily veterans and healthcare professionals supporting them, through their fund Beyond Alpha Ventures LLC and their advisory firm Beyond Equity LLC.
They claimed to invest in an options trading strategy and special purpose vehicles holding pre-IPO securities, promising returns of up to 153%. However, despite consistent losses, they continued to tout these fictitious performance figures, notably in a document titled “Trading Fund Overview 2024.”
The complaint details that investors’ funds were diverted into brokerage accounts where the majority was lost in failed options trades. Dinelli allegedly diverted over $1 million, while Frankel diverted more than $340,000.
The SEC accuses them of violating U.S. securities laws and seeks permanent injunctions, repayment of funds with interest, and civil penalties. Concurrently, the U.S. Attorney’s Office for the Southern District of New York has initiated criminal proceedings against them.
Thomas P. Smith Jr., Deputy Director of the SEC’s New York Regional Office, emphasized that the defendants exploited military camaraderie for personal gain.