Manager Of Investment Firm Charged With Defrauding Investors In “Pre-IPO” Scheme

 

Giovanni Pennetta Fraudulently Sold Millions of Dollars’ Worth of Shares in Non-Public Companies That He Didn’t Own

United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation, Christopher G. Raia, announced today the unsealing of an Indictment charging GIOVANNI PENNETTA, the manager of Sestante Capital LLC (“Sestante”), a Manhattan-based investment adviser and private equity firm, with securities fraud, wire fraud, and aggravated identity theft. The charges in the Indictment arise from an alleged scheme by PENNETTA to fraudulently induce multiple investment clients to part with millions of dollars in exchange for economic exposure to shares of non-public companies.  PENNETTA was arrested on Sunday afternoon at John F. Kennedy International Airport and will be presented today before U.S. Magistrate Judge Gary Stein.  The case has been assigned to U.S. District Judge Jed S. Rakoff. 

“As alleged, Giovanni Pennetta took advantage of investors by promising access to private, pre-IPO companies he did not control and never had access to,” said U.S. Attorney Jay Clayton.  “American investors deserve honesty in all markets, including the private investment markets.  When someone lies to investors and pockets their money instead, this Office and our law enforcement partners will step in to protect investors and the integrity of our markets.” 

“Giovanni Pennetta allegedly stole millions of dollars from clients attempting to expand their own businesses with lies about his economic access and influence,” said FBI Assistant Director in Charge Christopher G. Raia.  “Pennetta allegedly abused his managerial position to attract potential victims before moving their intended investment funds from their wallets to his own.  The FBI maintains its unwavering stance against any business managers deceiving others to selfishly enrich themselves.”

As alleged in the Indictment unsealed today in Manhattan federal court:

PENNETTA is the managing member of Sestante, which is based in Manhattan.  Sestante, in turn, is the managing member of, and an investment adviser to, NextGenTech Investments LLC (“NextGenTech”), a private fund that purports to offer investors economic exposure to equity securities through membership interests in series controlled by the fund.

From 2019 through the present, PENNETTA repeatedly misrepresented to victims that he had access to shares of private companies and could offer investment interests in those shares through NextGenTech.  When investors transferred money to PENNETTA, however, he accepted the victims’ funds but did not provide them with the investment interests he had promised because, in fact, PENNETTA did not have access to the shares and had intentionally misled investors when he had told them otherwise.

Many of PENNETTA’s misrepresentations centered around his access to shares of Anduril Industries, Inc. (“Anduril”), a private defense technology company.  Invoking supposed connections with individuals associated with Anduril, PENNETTA represented to victims that he had access to Anduril shares and offered to sell his victims economic exposure to those shares by having them purchase membership interests in particular series of NextGenTech.  In furtherance of this scheme, PENNETTA provided his victims with falsified documents purporting to show his access to Anduril shares and that particular series of NextGenTech offered exposure to Anduril shares.

PENNETTA’s representations were false.  In fact, PENNETTA did not have access to Anduril shares, and NextGenTech did not have exposure to Anduril shares. The victims who paid NextGenTech millions of dollars based on PENNETTA’s promises received no economic exposure to Anduril shares whatsoever. Instead, PENNETTA transferred much of the victims’ funds to his personal bank account.

PENNETTA, 50, of New York, New York and Italy, is charged with securities fraud and wire fraud, each of which carries a maximum sentence of 20 years in prison, and aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison. 

The maximum and minimum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Clayton praised the outstanding work of the FBI and the U.S. Securities and Exchange Commission.

Attorney General James Wins Court Order Protecting SNAP Benefits

 

New York Attorney General Letitia James today released the following statement after a federal judge blocked the Trump administration’s efforts to penalize states with millions of dollars in fines related to their Supplemental Nutrition Assistance Program (SNAP) operations:

“Our most vulnerable residents rely on SNAP to put food on the table. Despite the federal government's best efforts to make it more difficult for food assistance to reach those in need, today's decision ensures New York's SNAP program can continue running without interruption. I am grateful to the court for recognizing the urgency of this matter, especially this holiday season.”

On November 26, Attorney General James led a coalition of 21 attorneys general in suing the Trump administration after it attempted to cut off SNAP benefits for tens of thousands of lawful permanent residents. On December 10, the administration reversed itself and issued new guidance, confirming that lawful permanent residents – including former refugees and asylees – remain eligible for SNAP benefits. Despite that reversal, the administration continued to threaten states with millions of dollars in fines, claiming that states had missed a required “grace period” for implementing the new guidance, even though the final guidance was not issued until December 10.

Today, the U.S. District Court for the District of Oregon issued an order temporarily blocking those penalties. The court’s decision prohibits the federal government’s efforts to impose severe financial penalties on states and protects the continued operation of SNAP programs while the case proceeds.

180 FIREARMS TURNED IN AT BRONX DA OFFICE, NYPD GUN BUYBACK

 

Participants Received Cash Cards and Electronics

Bronx District Attorney Darcel D. Clark today announced that 180 firearms, including 11 assault-style rifles, were turned in at the Office’s gun buyback on Saturday, December 13, 2025, at St. Luke’s Episcopal Church in the Wakefield section of the Bronx. 

District Attorney Clark said, “The resounding success of this gun buyback is testimony to what we can do as a community by working together. Every gun turned in is a possible life saved. I thank Assembly Speaker Carl E. Heastie for providing funding for the electronics and gift cards that incentivized people to turn in their guns. I am grateful to Father Pierre-Andre H. Duvert for his partnership and willingness to allow us to use his church to host the buyback.” 

District Attorney Clark said 180 firearms were turned in at the event, including 83 semiautomatics, 54 revolvers, 11 assault weapons, two rifles, four shotguns, and a ghost gun, among other firearms. Participants received a $500 or $200 gift card, along with IPAD Pros, AirPod Pros, gaming consoles and other high-ticket items. The guns were collected at St. Luke’s Episcopal Church at 777 E. 222nd Street. 

This was the Office’s second gun buyback event this year. On November 22nd, 2025, 165 firearms were collected at St. James Episcopal Church in the Fordham neighborhood.

MAYOR ADAMS’ STATEMENT ON COMMISSION ON UNIVERSAL AFTER- SCHOOL’S FINDINGS TO ACHIEVE UNIVERSAL AFTER-SCHOOL

 

New York City Mayor Eric Adams today released the following statement on the Commission on Universal After-School’s interim report producing strategic recommendations to address issues facing the after-school ecosystem:

“When we set out to achieve “After-School for All,” we knew it would take a broad coalition to get it done — and to get it done right. By bringing together leaders from community-based providers, advocacy groups, philanthropy and the business sector, the city set out to build a long-term, sustainable strategy for a universal after-school system that gives nonprofits the support they need to hire staff, strengthen training, and deliver high-quality programs.

Attorney General James Sues UPS for Cheating Seasonal Workers Out of Millions of Dollars

 

UPS Allegedly Underpaid Thousands of Seasonal Holiday Workers Through Systematic Campaign of Off-the-Clock Work, Inaccurate Timekeeping, and Wage Theft

New York Attorney General Letitia James today filed a lawsuit against United Parcel Service, Inc. (UPS) for repeatedly and persistently stealing wages from thousands of seasonal delivery workers across New York state. An investigation by the Office of the Attorney General (OAG) found that for years, UPS has shortchanged seasonal workers who keep the company running during peak holiday demand by failing to record all hours worked, requiring widespread off-the-clock labor, and manipulating timekeeping systems to reduce paid hours. Attorney General James alleges that these unlawful practices deprived workers of millions of dollars and is asking the court to order UPS to pay restitution for current and former seasonal workers whose wages were unlawfully withheld.

“UPS built its holiday business on the backs of workers who were not paid for their time and labor,” said Attorney General James. “UPS’s seasonal employees work brutal hours in the cold to deliver the holiday packages families across the country count on. Instead of compensating these workers fairly for their labor, UPS has played the Grinch. I am fighting to get these workers their money back and stop UPS from continuing its cruel and unlawful wage theft.”

“We at Teamsters local 804 deeply appreciate the work Attorney General Letitia James and her office have done to hold corporations like UPS accountable,” said Vincent Perrone, President, International Brotherhood of Teamsters Local 804. “UPS thought they could exploit seasonal workers by not paying them for all time worked. But the Teamsters and the State of New York will always stand up to corporate greed and abuse. Thank you for standing with us and with working people across our great state.”

“Joint Council 16 thanks the Attorney General’s office for continuing to uphold the rights of working New Yorkers,” said Thomas Gesualdi, President of International Brotherhood of Teamsters Joint Council 16. “Too often, we see corporations getting away with the exploitation and abuse of vulnerable workers. Teamsters, alongside Attorney General Letitia James, will always fight back against corporate greed and malfeasance. We are proud to stand together and bring UPS into compliance with the law. Wage theft is theft.”

UPS is the largest package delivery company in the world, generating approximately $90 billion in annual revenue and employing nearly 500,000 people worldwide. Each year between October and January, the company hires thousands of temporary workers at more than 50 facilities in New York state. These employees include Driver Helpers, who assist full-time drivers with deliveries, and Seasonal Support Drivers, who use their personal vehicles to help the company meet delivery demand. In 2023, OAG opened an investigation after Teamsters Local 804 raised concerns about widespread nonpayment issues affecting seasonal delivery workers. After a thorough review, OAG ultimately concluded that UPS’s violations were not isolated errors, but rather repeated and persistent practices embedded across its New York operations.

Seasonal workers told OAG that they often reported to facilities or roadside meet-up points and then waited, sometimes for hours, without pay, and in some cases were sent home without ever clocking in. They also described going unpaid for time spent traveling between assignments, watching required training videos, returning undelivered packages, and handing in equipment at the end of their jobs. For workers brought on for just a few intense months each year, these unpaid hours meant losing critical seasonal income.

The OAG investigation revealed that UPS used unlawful timekeeping practices that led to systematic undercounting of hours. At times, UPS delayed clock-ins until a worker scanned or delivered the first package, even when workers had already been working or waiting on-site, in some cases for hours. The company automatically deducted 30-minute meal breaks regardless of whether workers took them and edited employees’ timesheets to reduce their paid hours. The OAG also found that UPS calculated pay based on a worker’s scheduled start time or delayed clock-in, whichever was later, ensuring that any early work went entirely unpaid.

Workers often reported to work at the start of their shifts only to discover that the packages or drivers needed to begin deliveries had not yet arrived. During these delays, they would frequently perform other tasks – such as preparing vehicles, loading packages, or traveling between meeting points – but none of this labor was recorded or compensated. Many seasonal workers logged more than 40 hours a week during peak holiday periods, yet UPS failed to provide legally required overtime pay. Workers were also forced to clock out before completing assignments and were denied wages for mandatory training, work performed during supposed meal breaks, and other required tasks that UPS failed to record as compensable time.

Attorney General James argues that UPS’s systematic undercounting of hours and the resulting underpayment of millions of dollars to seasonal workers constitute clear violations of New York Labor Law, including the state’s minimum wage, promised wage, overtime, wage-statement, and recordkeeping requirements. The lawsuit also alleges that UPS’s actions violate the federal Fair Labor Standards Act. Attorney General James is asking the court to order restitution for the workers who were denied wages and to require UPS to adopt sweeping reforms that end off-the-clock work and other unlawful practices.

tatement from Governor Kathy Hochul Re: Gaming Commission

“Today’s vote by the New York State Gaming Commission is the culmination of a multi-year, community-driven process to ensure that casino licenses were only awarded to proposals that had local support, clear community benefits and sustainable economic plans. I thank Chair O’Dwyer and the entire commission for their work to get the best possible outcomes for New Yorkers throughout this process.

“The three approved casinos will generate billions of dollars for the MTA and education, create tens of thousands of jobs and deliver real benefits to their surrounding communities. Each of the projects made significant commitments to their communities and to New York State, and the Gaming Commission was clear that they will hold these projects accountable and make sure they keep their promises. That is what New Yorkers expect and what they deserve.”

NYSOFA and Selfhelp Community Services Announce Free Access to Virtual Senior Center (VSC) for New Yorkers 60+ in Effort to Address Social Isolation

 

VSC includes 400+ monthly live programs and other features, such as email, news, games, and self-directed “channels”

The New York State Office for the Aging (NYSOFA) and Selfhelp Community Services today announced the availability of free access to Selfhelp’s Virtual Senior Center (VSC) for any individual age 60 and older in New York State.

New York State Office for the Aging Director Greg Olsen said, “The Virtual Senior Center is a powerful platform that opens a world of possibilities and connections for older adults who are homebound or simply wish to access enriching social and educational experiences from home. We began our partnership with Selfhelp by offering its free VSC service through offices for the aging in several counties, and we are now thrilled to make the platform available to any older adult in New York State as part of NYSOFA’s longstanding commitment to address social isolation across programs and services.”

Stuart C. Kaplan, CEO of Selfhelp Community Services, said, “We are grateful to the New York State Office for the Aging for its strong partnership and shared commitment to ensuring that older adults remain connected, supported, and engaged. This expansion of the Virtual Senior Center reflects the power of collaboration to combat isolation by building meaningful virtual communities for older New Yorkers. At Selfhelp, we see every day how access to social connection and enrichment can transform lives, and we are proud to work with the state to make these opportunities available to all.”

Selfhelp Community Services created VSC in 2020 to help homebound and socially isolated older adults stay connected to their community. The VSC offers robust programs designed for older adults, managed by social workers and a team who provide intentional engagement. Its inclusive and engaging environment offers a space where older adults can connect with one another from wherever they call home.

The VSC includes 400+ monthly live programs and other features — such as email, news, games, and self-directed “channels” — that can be navigated independently. Older adults can participate in classes, tour world-famous locations, interact with peers, engage in wellness activities, and, most importantly, expand their social network.

NYSOFA and Selfhelp began their partnership in 2021, offering access to the platform for homebound older adults in several counties through their Area Agency on Aging (AAA). The partnership was designed to supplement existing social engagement offerings for individuals identified by AAAs who may experience barriers accessing in-person social opportunities. The partnership is now expanding so that any New Yorker age 60 and older can access the VSC for free on their tablet or computer at https://www.vscm.selfhelp.net.

To register as a VSC participant, simply call Selfhelp’s VSC program at (718) 559-4370.

Among the VSC’s partners, local aging service organizations also host hybrid classes on the VSC platform, further allowing older adults to maintain a connection to those in their community.

Independent evaluation found that 84% of VSC participants reported a decrease in loneliness, and 76% reported feeling less depressed because of the VSC. Seventy-six percent made new friends and 67% joined programs for social connection and to learn something new.

The VSC is one of several public-private partnerships that NYSOFA has launched to combat social isolation, support caregivers, and address social determinants of health through technology. These partnerships have already expanded access to supports for an additional 2 million older adults. Learn more about NYSOFA’s partnerships and efforts to address social isolation.

Social isolation affects older adults and people of all ages. For older adults facing isolation, NYSOFA has a 50-year track record of services, supports, and interventions, including many nation-leading program innovations. In May 2023, the U.S. Surgeon General reported on the alarming health crisis of loneliness, isolation, and lack of connection in our country. Loneliness and isolation increase the risk for individuals to develop mental health challenges in their lives. Lacking connection can increase the risk for premature death to levels comparable to smoking daily.           

To learn more about the VSC, watch NYSOFA’s recent livestream with Selfhelp Community Services, providing more information about the platform and how to enroll.

Permits Filed for 1481 Boston Road in Crotona Park East, The Bronx

 

Permits have been filed for a six-story affordable housing building at 1481 Boston Road in Crotona Park East, The Bronx. Located between Wilkins Avenue and Prospect Avenue, the lot is closest to the Freeman Street subway station, served by the 2 and 5 trains. Aleksander Mici is listed as the owner behind the applications.

The proposed 70-foot-tall development will yield 40,103 square feet designated for residential space. The building will have 74 residences, most likely rentals based on the average unit scope of 541 square feet. The masonry-based structure will also have a cellar and a 20-foot-long rear yard.

John Backos of Grid Drafting and Consulting LLC is listed as the architect of record.

Demolition permits have not been filed yet. An estimated completion date has not been announced.