The Securities and Exchange Commission filed a complaint Friday in the Southern District of New York against Andrew Spaventa, founder of The Spaventa Group, for raising over $74 million from more than 800 investors, including over 100 retirees, between December 2020 and June 2025. The SEC accuses this boiler room of over 100 agents of charging an average markup of 46% on the actual purchase price of shares, reaching up to 91% in some cases, despite repeated promises of zero hidden fees. In total, $23 million in undisclosed fees were collected, with over $12 million used to pay agent commissions and at least $4 million spent by Spaventa on home purchase and renovations, personal travel, and luxury car payments. The SEC is seeking disgorgement, civil penalties, and a permanent bar from the securities industry.
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