Forge Global, Sestante Capital & NextGenTech Investments Investor Alert: DOJ Fraud Charges Raise Serious Concerns for Pre-IPO Investors

Forge Global, Sestante Capital & NextGenTech Investments Investor Alert: DOJ Fraud Charges Raise Serious Concerns for Pre-IPO Investors.

Investors who purchased interests in Sestante Capital LLC or NextGenTech Investments LLC through a broker affiliated with Forge Global or Forge Securities LLC may have suffered substantial losses in what federal prosecutors describe as a multimillion-dollar fraudulent pre-IPO investment scheme.

The U.S. Department of Justice has charged Sestante Capital manager Giovanni Pennetta with securities fraud, wire fraud, and aggravated identity theft in connection with an alleged scheme involving fake access to highly sought-after pre-IPO shares in private companies such as Anduril Industries.

Investors who were introduced to these investments through Forge-affiliated brokers may have legal rights to pursue recovery through FINRA arbitration.

DOJ Alleges Investors Were Sold Fake Pre-IPO Shares

According to the U.S. Attorney’s Office for the Southern District of New York, Giovanni Pennetta allegedly solicited millions of dollars from investors by falsely claiming to offer “economic exposure” to private company shares through Sestante Capital and NextGenTech Investments.

Federal prosecutors allege:

• Pennetta falsely claimed to have access to shares in high-profile private companies.
• Investors were promised pre-IPO exposure through specialized NextGenTech fund series.
• Many of the supposed underlying shares allegedly did not exist.
• Investors were allegedly provided falsified documents intended to create the appearance that the investments were legitimate.
• Millions of dollars were allegedly diverted to Pennetta’s personal accounts rather than invested as represented.

The DOJ stated that Pennetta was arrested at John F. Kennedy International Airport after federal prosecutors unsealed the criminal indictment.

Subsequent reports indicate Pennetta later pleaded guilty to wire fraud charges involving the alleged misappropriation of more than $10 million from investors.

What Were Investors Told?

Many investors were allegedly marketed the investments as rare opportunities to gain access to rapidly growing private technology and defense companies before a public offering.

According to public reports, many representations centered on purported access to shares of Anduril Industries, a highly valued private defense technology company.

Investors were often told they could participate in pre-IPO growth opportunities through NextGenTech fund structures managed by Sestante Capital. Federal authorities allege that many of these representations were false.

Forge Global and Forge Securities Under Scrutiny

The allegations have raised serious questions regarding the role of brokers affiliated with Forge Global and its broker-dealer subsidiary Forge Securities LLC.

Forge Global operates a large secondary marketplace for private company shares and pre-IPO transactions involving private securities.

Reports indicate that some investors were introduced to Sestante Capital and NextGenTech Investments through Forge-affiliated brokers or representatives.

Investor attorneys investigating the matter have publicly questioned whether Forge brokers and supervisors fulfilled their obligations under FINRA rules and Regulation Best Interest before recommending or facilitating investments connected to Sestante and NextGenTech.

Potential issues under investigation reportedly include:

• Failure to conduct adequate due diligence
• Failure to verify underlying assets
• Misrepresentations and omissions
• Unsuitable investment recommendations
• Failure to supervise
• Inadequate risk disclosures
• Overconcentration in speculative private investments

SEC Previously Warned Investors About Pre-IPO Scams

The risks associated with pre-IPO investments have become significant enough that the SEC issued a formal investor alert warning investors about fraudulent pre-IPO offerings.

According to the SEC:

• Fraudsters may falsely claim access to private shares they do not own.
• Investors may receive falsified documents or misleading account information.
• Investor funds may be misappropriated for personal use.
• Many pre-IPO offerings involve substantial risks and lack transparency.

The SEC specifically warned investors to be cautious of offerings promising exclusive access to highly sought-after private companies.

Risks of Pre-IPO and Alternative Investments

Private market and pre-IPO investments can involve substantial risks, including:

• Illiquidity
• Limited transparency
• Valuation uncertainty
• Lack of audited financials
• Heavy reliance on sponsor representations
• Limited regulatory oversight
• Speculative valuations
• Fraud risk
• Complex fund structures

These investments are generally only appropriate for sophisticated investors who can tolerate substantial losses and long holding periods.

Unfortunately, many investors later discover that the risks were far greater than they understood when the investment was recommended.

FINRA Arbitration Claims for Investors

Investors who suffered losses in Sestante Capital or NextGenTech Investments may have claims against brokerage firms and financial advisors if the investments were improperly recommended or inadequately supervised.

Potential FINRA arbitration claims may include:

• Unsuitable investment recommendations
• Failure to conduct due diligence
• Misrepresentations and omissions
• Breach of fiduciary duty
• Negligence
• Failure to supervise
• Violations of Regulation Best Interest
• Overconcentration in speculative investments

Even where the underlying investment sponsor engaged in fraud, brokerage firms and brokers may still be liable if they failed to perform reasonable due diligence before recommending the investment.

Goodman & Nekvasil, P.A. Is Investigating Forge Global Pre-IPO Investment Losses

Goodman & Nekvasil, P.A. is investigating potential claims involving Sestante Capital, NextGenTech Investments, Forge Securities LLC, and other private market investment recommendations involving alleged pre-IPO fraud.

The firm represents investors nationwide in FINRA arbitration claims involving:

• Private placements
• Alternative investments
• Non-traded REITs
• Delaware Statutory Trusts (DSTs)
• Pre-IPO investments
• Illiquid securities
• Broker misconduct

There is no charge for an evaluation of your potential case. Cases are handled on a contingency fee basis, meaning no attorney fee is charged unless a recovery is obtained.

Investors who purchased Sestante Capital or NextGenTech Investments through a Forge-affiliated broker or financial advisor are encouraged to contact the firm to discuss whether they may be able to recover losses through FINRA arbitration.

Call 800-500-4442 for a free case evaluation.

Some of the information in this blog post was obtained from the SEC and FINRA on 5/14/26. If you believe this information was reported incorrectly, please contact our firm: 1-800-500-4442