Funds Raised $70 Million in Pre-IPO Boiler Room Fraud, SEC Says

Max Infinity Management LLC, along with affiliated companies and seven individuals, raised upwards of $70 million from more than 550 investors through a fraudulent scheme purporting to sell fund interests in pre-IPO stock, the SEC said.

Over the course of nearly two years, Max Infinity’s principals and sales agents used “boiler room-style high pressure sales tactics” and trickery to solicit investments for two related funds, misrepresenting that the vehicles held pre-IPO stock that would return profits of 200% or more with no fees and minimal risk, the Securities and Exchange Commission said in a suit filed Friday in the US ...