US SEC sues over alleged bogus bailout of Richard Branson’s Virgin Orbit
A Texas man was sued by the U.S. Securities and Exchange Commission on Monday over his alleged fraudulent $200 million offer to rescue billionaire Richard Branson’s now-defunct satellite launch services company Virgin Orbit. The SEC said Matthew Brown falsely portrayed himself, including on CNBC, as an experienced venture capitalist with investments in “over 13 space companies” when he made a bogus offer to buy Virgin Orbit stock on March 19, 2023, as the company teetered near bankruptcy. According to the SEC, Brown fabricated a screen shot of his company’s bank account to show a “current” balance of $182,383,991 though it contained less than $1, and demanded that Virgin Orbit pay a 3% “break-up” fee if his investment did not close.
Reuters•
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