Federal Prosecutors Charged Duo in $8.7 Million Fraud
Jacob Frankel and Christopher Dinelli face charges for allegedly swindling 35 investors through their investment firm.
Updated on Sept. 29, 2026 in Financial Crime
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Federal prosecutors unsealed an indictment charging Jacob Frankel and Christopher Dinelli with securities and wire fraud. The pair allegedly misled 35 investors, obtaining over $8.7 million for a firm that claimed to use proprietary trading algorithms.
Why it matters
This case highlights the risks investors face from unregistered firms that bypass regulatory oversight to conceal losses. Prosecutors allege the defendants diverted funds for personal use while creating fake account statements to maintain the illusion of profitability.
Federal authorities unsealed the indictment on September 29, 2026, with the defendants facing a maximum of 20 years per fraud count and 5 years for conspiracy charges. Frankel and Dinelli were processed in Manhattan and Maryland courts respectively.
The players
Jacob Frankel
The 32-year-old resident of Kinnelon, New Jersey, is a defendant accused of lying on regulatory forms regarding his past criminal conduct.
Christopher Dinelli
The 34-year-old resident of Frederick, Maryland, is a co-defendant charged in connection with the Beyond Alpha Ventures LLC fraud.
Beyond Alpha Ventures LLC
This investment firm allegedly claimed to utilize a proprietary algorithm for hedge-fund-style trading to solicit investor capital.
The details
Prosecutors claim the defendants operated Beyond Alpha Ventures LLC, where they allegedly lied about purchasing direct pre-IPO shares and used investor cash for high-risk, unprofitable options trading. Jacob Frankel also allegedly falsified regulatory filings to hide his past criminal convictions and disciplinary records.
Timeline
The fraudulent scheme allegedly occurred from 2023 through February 2026.
Authorities unsealed the indictment on September 29, 2026.
Legal Context
The indictment underscores the importance of the Form ADV regulatory filing requirements for disclosing disciplinary history to investors. This case marks a sharp departure from standard transparency protocols, as prosecutors allege the defendants intentionally falsified these specific filings to mislead the public.
Investors who believe they have been victims of similar schemes should review their portfolios for unauthorized activity or discrepancies in account statements. Authorities encourage the public to use official reporting portals to flag suspicious investment solicitations and firm claims.
The takeaway
Retail investors should always verify a firm's regulatory history through official databases rather than relying solely on proprietary claims. Due diligence regarding the backgrounds of fund managers remains the most effective protection against fraudulent investment schemes.
Further reading
For more information on recognizing signs of investment misconduct, visit the Financial Crime section.
More information
To report suspected investment fraud, visit the Investment fraud reporting portal.
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