WASHINGTON D.C. — The Securities and Exchange Commission announced charges against Christopher Kenji Dinelli and Jacob David “Kobe” Frankel for allegedly orchestrating a fraud scheme. The alleged fraud scheme raised more than $8.7 million from investors through Beyond Alpha Ventures LLC and Beyond Equity LLC.

The defendants allegedly targeted veterans and individuals who provide medical services to veterans. According to the complaint, the defendants told investors their money would be invested in the Beyond Alpha Ventures LLC fund, which was represented to have an options trading strategy and/or affiliated special purpose vehicles that purported to hold pre-IPO securities in two private companies.

The complaint alleges the defendants repeatedly made material misrepresentations concerning the past performance of the fund and pre-IPO investments, the amount of assets under management, and Beyond Alpha Ventures LLC’s client base and current and past holdings. Despite consistent losses in the fund, the complaint alleges that Dinelli and Frankel continued to tout returns of up to 153%.

A document titled “Trading Fund Overview 2024” claimed a “153% Net Return on Investment.” The complaint alleges that without investors’ knowledge, the defendants diverted money provided by pre-IPO securities investors to the fund’s brokerage accounts. The complaint alleges the vast majority of the diverted funds were lost due to failed options trades.

The complaint alleges Dinelli misappropriated over $1 million. Christopher Kenji Dinelli is a former naval officer.

Jacob David Frankel, a registered securities representative from 2016 to 2023, had a four-month FINRA suspension in December 2023 due to failure to disclose his criminal history to his employer, and was convicted in March 2026 of grand larceny and identity theft. Jacob Frankel falsely represented in six Forms ADV filed between May 2025 and June 2026 that Beyond Alpha Ventures LLC had no advisory affiliates with felony convictions, despite his own prior felony drug-related charges and criminal convictions.

Beyond Alpha Ventures LLC was never registered with the SEC, despite claims by Dinelli in a September 2024 social media post that his hedge fund was SEC-approved. The SEC’s complaint was filed in the U.S. District Court for the Southern District of New York. The complaint charges Dinelli and Frankel with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.

The complaint additionally charges Frankel with violating the Investment Advisers Act of 1940. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against both defendants. The U.S. Attorney's Office for the Southern District of New York announced criminal charges against Dinelli and Frankel in a parallel criminal action concerning the same conduct.

Why It Matters

The SEC’s New York Regional Office, which issued statements on the case, has previously pursued enforcement actions against securities fraud schemes targeting vulnerable groups, including a 2023 case against a firm defrauding elderly investors of $4.2 million. The SEC’s New York Regional Office, led by Associate Director Thomas P. Smith, Jr. has a history of targeting financial fraud cases involving misrepresentation of investment returns, as evidenced by its enforcement actions in similar securities violations.

Timeline

On September 30, 2026, Thomas P. Smith, Jr. Associate Director of the SEC’s New York Regional Office, said, “The bonds between service members are as strong, if not stronger, than in any other profession.” He added on the same date, “Through their alleged actions, the defendants took advantage of those relationships for greedy and self-serving purposes.” Smith concluded on September 30, 2026, “We will hold them accountable for their actions.”

What's New

Additional reporting indicates Christopher Kenji Dinelli, a former U.S. Navy submarine officer, was the chairman of Beyond Alpha Ventures LLC (BAV) until July 2025 and also served as CEO and chairman of Beyond Alpha Capital Management LLC (BACM), which was owned by Dinelli and another Navy veteran who was also a BAV investor. Records show Dinelli was the Chairman of Beyond Alpha Ventures LLC until July 2025, according to the SEC’s complaint, which details his leadership role in the firm prior to the fraud allegations. Further details confirm Christopher Kenji Dinelli served as a submarine officer in the U.S. Navy from 2014 to 2023, as noted in his LinkedIn profile and confirmed by the SEC’s complaint.

Reports indicate Jacob Frankel falsely represented in six Forms ADV filed between May 2025 and June 2026 that Beyond Alpha Ventures LLC had no advisory affiliates with felony convictions, despite his own prior felony drug-related charges and criminal convictions. Background information shows Beyond Alpha Ventures LLC was never registered with the SEC, despite claims by Dinelli in a September 2024 social media post that his hedge fund was SEC-approved. Contextual data notes the SEC’s New York Regional Office, which issued statements on the case, has previously pursued enforcement actions against securities fraud schemes targeting vulnerable groups, including a 2023 case against a firm defrauding elderly investors of $4.2 million.

Additional context reveals the SEC’s New York Regional Office, led by Associate Director Thomas P. Smith, Jr. has a history of targeting financial fraud cases involving misrepresentation of investment returns, as evidenced by its enforcement actions in similar securities violations. Court records show the U.S. District Court for the Southern District of New York is handling a separate civil lawsuit, East Park Technologies Inc. et al v. Beyond Alpha Ventures LLC et al (1:26-cv-02390), alleging disputes involving Beyond Alpha Ventures LLC, indicating potential prior legal exposure for the firm.