SEC Charges Two Men in $8.7M Fraud Targeting Veterans
Regulators allege Christopher Dinelli and Jacob Frankel raised over $8.7M from 35 investors through a fraudulent fund scheme.
The Securities and Exchange Commission has filed charges against Christopher Kenji Dinelli and Jacob David "Kobe" Frankel, accusing the two individuals of running a fraud scheme that exploited military veterans and other investors, the agency announced.
According to the SEC, Dinelli and Frankel allegedly raised more than $8.7 million from at least 35 investors through their fund, which the regulator contends was used to deceive rather than generate legitimate returns for those who invested.
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The case is part of a broader pattern of investment fraud that regulators say disproportionately targets veterans, a demographic often considered attractive to bad actors due to steady income streams, group trust networks, and a tendency toward community-based financial decision-making — a practice enforcement officials sometimes call affinity fraud.
The SEC's action signals continued regulatory scrutiny of fund operators who solicit funds from vulnerable populations under false pretenses. Charges of this nature typically allege violations of federal securities laws, including prohibitions against misrepresentation and the sale of unregistered securities, though the specific statutory claims against Dinelli and Frankel were outlined in the agency's formal complaint.
Continue reading at Press Releases for the full details of the SEC's complaint and charges.
