A major federal enforcement priority has placed Forge Securities LLC under intense scrutiny following allegations of a massive pre-IPO fraud scheme. According to national media reports, the firm allegedly directed investors into a fraudulent operation involving Anduril Industries shares that may not have existed.
When investors suffer significant financial setbacks due to advisor misconduct or supervisory failures, navigating the path to recovery can feel overwhelming. Consulting with experienced securities fraud lawyers is a critical first step in determining whether your losses are the result of actionable negligence. At Meyer Wilson Werning, our legal team is dedicated to investigating claims of broker-dealer misconduct to help restore the financial security of defrauded investors.
National News Coverage of Forge Securities and the Sestante Capital Indictment
On March 12, 2026, Business Insider, via GlobeNewswire, reported that Meyer Wilson Werning launched a formal investigation into Forge Securities LLC (a subsidiary of Forge Global Holdings). The investigation centers on the firm’s role in facilitating investments into Sestante Capital LLC, a firm tied to a federal criminal indictment.
In December 2025, federal prosecutors unsealed charges against Giovanni Pennetta, the managing partner of Sestante Capital. Pennetta faces counts of securities fraud, wire fraud, and aggravated identity theft. He is accused of fabricating access to pre-IPO shares in Anduril Industries, a private defense technology company currently valued at approximately $30 billion. Investors were reportedly funneled through NextGenTech Investments LLC under the belief they were securing a stake in one of the most sought-after private companies in the defense sector.
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Did Forge Securities Fail its Duties Under Regulation Best Interest?
The central legal question is whether Forge Securities met its obligations under Regulation Best Interest (Reg BI) and FINRA rules. While the fraud was allegedly orchestrated by Pennetta, brokerage firms have a non-negotiable duty to vet the products they recommend.
As David P. Meyer, founding partner of Meyer Wilson Werning, stated in the national media:
“Investors who came to Sestante Capital through Forge had every reason to believe they were operating in a regulated, vetted system. The question is whether Forge brokers did the basic verification that federal law requires, or whether they collected fees while investors were steered into a fraud that a simple check could have uncovered.”
Important Points Regarding Broker Negligence:
- Lack of Due Diligence: Firms must verify that the shares being sold actually exist and are held by the entity claiming to sell them.
- Supervisory Failures: Under FINRA Rule 3110, firms must monitor all broker-led referrals and external investment opportunities.
- Misleading Marketing: Investors were promised “exclusive access” to Anduril Industries, a narrative that may have been used to bypass standard risk disclosures.
- Unearned Fees: The investigation looks into whether Forge Securities collected commissions for transactions that lacked any legitimate underlying value.
The SEC’s $700 Million Crackdown on Pre-IPO Fraud
The investigation into Forge Securities aligns with a broader push by the Securities and Exchange Commission (SEC) to clean up the private market. The SEC flagged pre-IPO fraud as a high-priority enforcement area for fiscal year 2024.
Over the last 18 months, federal regulators have charged schemes totaling more than $700 million. These scams often prey on the fear of “missing out” (FOMO) on high-value unicorn companies before they go public. Because private companies like Anduril Industries do not have the same disclosure requirements as public stocks, investors rely entirely on their brokers to perform the necessary “gatekeeper” functions. When those brokers fail, the result is often total or near-total loss of principal for the investor.
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Legal Recovery Options for Defrauded Investors
If you were introduced to Sestante Capital or NextGenTech through any broker affiliated with Forge Securities, or if you were promised pre-IPO exposure to Anduril, you may have grounds for a legal claim.
Most brokerage disputes are resolved through arbitration, a process designed to provide a faster and more focused resolution than traditional court litigation. This allows investors to seek compensation from the brokerage firm for failing to supervise its representatives or for violating the best-interest standard.
Don’t let a firm’s failure to supervise or a broker’s unsuitable recommendations jeopardize your retirement and long-term goals. Meyer Wilson Werning represents clients nationwide, holding major brokerage firms accountable for the harm caused to individual investors. If you believe you have been a victim of financial fraud, contact us today for a free and confidential consultation to discuss your potential claim and explore your legal options for recovery.
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Frequently Asked Questions
What was the role of Forge Securities in the Sestante Capital fraud?
Investigation reports suggest Forge Securities brokers may have recommended or facilitated investments into Sestante Capital and NextGenTech. The investigation aims to determine if the firm failed to perform due diligence on Giovanni Pennetta and his claims regarding Anduril Industries shares.
Who is Giovanni Pennetta and what are the charges?
Giovanni Pennetta was the managing partner of Sestante Capital. He was indicted in December 2025 on federal charges including securities fraud and wire fraud for allegedly faking access to private defense technology shares.
Can I recover money if the investment was a private placement?
Yes. Brokerage firms are responsible for the investments they recommend, even in private markets. If the firm failed to detect “red flags” or failed to verify the existence of the shares, they can be held liable in arbitration.
What should I do if I invested in NextGenTech Investments LLC?
You should gather all documents related to the investment, including any correspondence with your broker at Forge Securities. These records are essential for proving that the firm facilitated your entry into the scheme.
Why is Business Insider covering this investigation?
The $700 million enforcement priority by the SEC has made pre-IPO fraud a major national news topic. The coverage highlights the risks of the secondary market and helps inform other investors who may be holding similar fraudulent positions.
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