In August 2026, the SEC charged a New York-based operator, Andrew Spaventa, along with three entities he controlled—The Spaventa Group LLC, TSG Capital Advisors LLC, and TSG Alpha Partners LLC—with running a boiler-room scheme that defrauded more than 800 retail investors out of over $74 million. Many of the victims were retirees.

If you’ve seen the headlines, you may be wondering whether an investment opportunity you’ve been offered is legitimate, or whether a parent, friend, or neighbor might be a target for something similar. Here’s what actually happened, and how to tell a real private-market opportunity from a scam.

How the Scheme Worked

According to the SEC’s complaint, Spaventa and his companies raised money from investors between December 2020 and June 2025 by offering access to eleven private investment funds that supposedly held pre-IPO shares in well-known private companies. The pitch: get in early on a company before it goes public, the same kind of access usually reserved for institutional investors.

The problem was in the fine print. Spaventa’s funds bought shares at one price, then resold them to investors at markups that averaged around 46% above what the funds had actually paid. Investors were told up front that fees would be minimal—capped at 12.5%—when in reality those hidden markups meant they were paying far more. The scheme is alleged to have generated roughly $23 million in fees, over $12 million of which went to sales agents as commissions, with about $4 million paid directly to Spaventa.

To find investors, the operation relied on more than 100 sales agents making unsolicited cold calls, often using high-pressure tactics and the appeal of a recognizable company name to get people to act quickly. The SEC’s complaint alleges violations of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. The case is pending in the U.S. District Court for the Southern District of New York.

Why Retirees Are Often Targeted

Boiler-room schemes like this one tend to target retirees for a few reasons: many have accumulated savings, may have more time to take an unexpected phone call, and are often being asked to make a decision about something—“pre-IPO access”—that even experienced investors find hard to evaluate. Add urgency and a familiar-sounding company name, and it’s easy to see how someone can be talked into moving quickly on a decision that deserves a second look.

Red Flags to Watch For

A few patterns show up again and again in cases like this one:

It started with an unsolicited call. Legitimate private investment opportunities are rarely pitched cold. If someone you don’t know calls or emails out of the blue offering “exclusive” access, treat that as a warning sign on its own.

There’s pressure to decide quickly. Phrases like “this offer closes today” or “spots are almost gone” are designed to overwhelm careful thinking. Real opportunities can withstand a few days of due diligence.

The fee structure sounds simple — maybe too simple. A flat, low fee that’s repeated often can be a way of distracting from costs buried elsewhere, like the markups in this case.

The pitch leans heavily on a recognizable name. Scammers often invoke a well-known private company to borrow its credibility, even when the actual investment vehicle has nothing to do with that company directly.

You can’t verify who you’re dealing with. A legitimate broker-dealer or investment adviser will be registered, and that registration can be checked. If someone resists a direct question about their registration status, that’s a red flag.

What a Legitimate Opportunity Looks Like

Real private-market investments—the kind that can make sense for some investors as part of a diversified plan—usually share a few traits: they come through an established channel rather than a cold call, fees are disclosed in writing before you commit to anything, the people offering the investment are properly registered and that registration is easy to confirm, and you receive real documentation, including offering materials, risk disclosures, and a subscription agreement. A legitimate opportunity welcomes scrutiny. It doesn’t discourage you from asking questions or having someone else look it over.

A Simple Rule That Helps

One habit we recommend to clients, especially those who are retired or nearing retirement, is simple: before acting on any unsolicited investment offer, call your advisor first—before you sign anything or send any money. It costs nothing to ask, and it gives someone who isn’t on the phone with a salesperson the chance to check the details calmly.

This is also a good conversation to have with parents or other family members who manage their own investments. A five-minute check-in about a phone call they received can prevent a costly mistake.

We’re Here Before You Say Yes

If you or someone in your family receives an unsolicited investment pitch — pre-IPO shares, a “can’t miss” private placement, or anything that asks for quick action — call us before you commit to anything. We’re happy to look at the offering materials, check on the people behind it, and help you think through whether it fits your financial plan. That conversation is always free, and it’s a lot easier to have before money changes hands than after.

Talk to a Good Life Financial Advisor in Mt. Pleasant, SC

Whether it’s evaluating an investment opportunity that’s landed in your inbox or building a broader plan for retirement, our team is here to help. Contact Good Life Financial Advisors of Mt. Pleasant to talk through any offer before you act on it, or to learn more about how we help clients seek to protect and grow what they’ve built.

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Disclosures:

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Good Life Financial Advisors. LLC, a registered investment advisor and separate entity from LPL Financial.
The opinions expressed in this material do not necessarily reflect the views of LPL Financial.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.

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