SEC Files Complaint Against Matthew Brown Over Alleged Fraudulent Scheme to Invest $200 Million in Virgin Orbit
By Sabela Ojea
The Securities and Exchange Commission filed charges against investor Matthew Brown and his venture capital company for allegedly engaging in a fraudulent scheme to invest $200 million in Virgin Orbit.
According to the complaint, Matthew Brown sent Virgin Orbit a fabricated screenshot of Matthew Brown Companies' bank account showing that it had a balance of more than $182 million, but the account had less than $1 million.
Brown also told Virgin Orbit that he held a law degree from Texas' Southern Methodist University, but he never graduated from college, the SEC said.
Brown submitted the unsolicited investment offer for Virgin Orbit on March 19, 2023, at a time when Virgin Orbit was teetering on the brink of bankruptcy.
Brown later refused to place any funds in escrow and didn't respond to Virgin Orbit's due diligence inquiries, according to the SEC.
Virgin Orbit filed for bankruptcy on April 4, 2023, and was delisted from Nasdaq on May 2, 2023.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
June 17, 2024 16:23 ET (20:23 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s the Difference Between the CPI and PCE Indexes?
-
Micron Earnings: Great Guidance but Stock Now Looks Fairly Valued
-
August PCE Report Forecasts Show More Good News on Inflation
-
AI Stocks May Be Down, but Don’t Count Them Out
-
4 Stocks to Buy as the Fed Cuts Interest Rates
-
Markets Brief: The Uncertain Path to Neutral Interest Rates
-
What’s Happening in the Markets This Week
-
Where Top Stock Fund Managers Are Looking Next After the Fed Rate Cut
-
Our Top Pick for Investing in US Renewable Energy
-
Undervalued by 25% and Yielding 5%, This Stock Is a Buy
-
Can AI Predict Future Stock Returns?
-
The Best Energy Stocks to Buy Now
-
10 Undervalued Wide-Moat Stocks
-
Obesity Drugs: Can New Firms Take Market Share From Eli Lilly and Novo Nordisk?
-
New 4-Star Stocks
-
Intel Fair Value Left Unchanged Despite Qualcomm Takeover Talk