The White Law Group Reviews the SEC Lawsuit Against Andrew Spaventa and TSG Capital Advisors
The U.S. Securities and Exchange Commission has reportedly filed a civil fraud lawsuit against Andrew Spaventa and three entities he controlled, alleging a $74 million scheme built on hidden fees charged to retail investors in pre-IPO private funds. The White Law Group is investigating potential claims on behalf of investors who purchased interests in these funds, and here is what’s on Spaventa’s regulatory record and what your options may be.
The SEC’s complaint, SEC v. Andrew Spaventa, The Spaventa Group LLC, TSG Capital Advisors LLC, and TSG Alpha Partners LLC, No. 26-civ-06958 (S.D.N.Y. filed Aug. 14, 2026), alleges that between December 2020 and June 2025, Spaventa and his companies raised more than $74 million from over 800 mostly retail investors across eleven private funds marketed as access to “pre-IPO” shares. If you invested in one of these funds and suffered losses, contact our FINRA arbitration attorneys today for a free consultation.
What the SEC Alleges in the Andrew Spaventa Lawsuit
According to the SEC, Spaventa allegedly purchased pre-IPO shares through entities he controlled and then resold them to his own funds at marked-up prices, passing the markup on to investors as hidden fees. Investors were allegedly told they would pay no upfront fee, or at most 12.5%, when the SEC says actual prices ran roughly 46% higher than what Spaventa had paid. The complaint alleges the defendants collected approximately $23 million in upfront fees, of which more than $12 million went to sales agents as commissions and about $4 million went to Spaventa personally.
The SEC alleges the funds were marketed using more than 100 sales agents who cold-called and pitched retail investors, including many retirees, using high-pressure tactics. The complaint charges violations of the antifraud, securities registration, and broker-dealer registration provisions of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940, and seeks disgorgement, civil penalties, and injunctive relief.
Andrew Spaventa’s FINRA Registration and Broker-Dealer Ties
Andrew Caputo Spaventa (CRD# 6175466) is currently registered with two affiliated but separately named entities. He holds his Series 7 and Series 24 licenses as a General Securities Representative and General Securities Principal of TSG Capital Advisors, a FINRA-registered broker-dealer, since August 2024. He is separately registered as an investment adviser representative of TSG Alpha Partners, LLC, an SEC-registered investment adviser, since August 2022. Because TSG Capital Advisors is the FINRA-registered broker-dealer, it is the entity against which a FINRA arbitration claim would typically be filed.
The Spaventa Group LLC, the third entity named in the SEC’s complaint, is not itself registered with FINRA or the SEC. Spaventa discloses it on his FINRA record only as an outside holding company that he manages.
Andrew Spaventa’s Prior FINRA Disclosures
Spaventa’s BrokerCheck record reportedly shows disclosure history predating the SEC’s 2026 lawsuit. In 2018, a customer at his former firm, Salomon Whitney Financial, alleged churning, negligence, unsuitability, unauthorized trading, and breach of contract, seeking $114,357 in damages; the matter settled for $14,999. Spaventa was allegedly suspended by FINRA from September to December 2019 for failing to comply with an arbitration settlement or respond to a related FINRA information request. A 2014 Florida Office of Financial Regulation order also allegedly denied his registration application over a claimed misstatement, though the broker’s own statement attributes that filing error to his employing firm’s compliance staff.
Spaventa’s record also reportedly discloses that the SEC opened a non-public investigation in February 2026, ahead of the August 2026 lawsuit, and reports that “the firm” cooperated with SEC staff, submitted a written response, and met with staff in April 2026.
Could TSG Capital Advisors Be Liable for Investor Losses?
Broker-dealers have a duty to supervise their registered representatives and principals, including their outside business activities. TSG Capital Advisors itself currently shows no disclosure events on BrokerCheck, but that does not resolve whether the firm knew or reasonably should have known about the fund activity the SEC has now put at issue. Investors who purchased interests through Spaventa while he was registered with TSG Capital Advisors may have a claim against the firm for failing to supervise him.
How to Recover Losses Tied to Andrew Spaventa or TSG Capital Advisors
If you invested in one of Spaventa’s pre-IPO private funds and lost money, you may be able to recover damages through FINRA arbitration. The White Law Group is a national securities fraud and investment loss recovery law firm with offices in Chicago and Seattle, and our attorneys are reviewing potential claims tied to this case now.
Contact The White Law Group
If you have concerns about investments made through Andrew Spaventa, TSG Capital Advisors, TSG Alpha Partners, or The Spaventa Group LLC, call us today at (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions (FAQs)
1. How do I file a claim to recover money I invested through Andrew Spaventa or TSG Capital Advisors?
Most brokerage account agreements typically contain a pre-dispute arbitration clause, so claims against a broker-dealer like TSG Capital Advisors are generally filed and resolved through FINRA arbitration rather than in court. Arbitration can still result in a monetary recovery, and an attorney can help determine whether your specific investment falls under an arbitration agreement.
2. What is the SEC actually alleging against Andrew Spaventa, and why does it matter for my investment?
The SEC alleges Spaventa marked up pre-IPO shares before reselling them to his own funds, then charged investors hidden fees well above what he had disclosed. If proven, that means investors paid substantially more than they were told, which directly affects the real return on their investment.
3. Can TSG Capital Advisors be held responsible for my losses, even if it didn’t directly approve the fund transactions?
Yes, potentially. Broker-dealers can be held liable for failing to supervise a registered principal’s activities, even activity conducted through affiliated entities, if the firm reasonably should have caught it. This is a fact-specific question that depends on what TSG Capital Advisors knew and when.
