SEC Charges Texas Resident with Submitting Bogus Offer to Invest $200 million in Virgin Orbit

The Securities and Exchange Commission today charged Dallas-Fort Worth resident Matthew Brown and his company, Matthew Brown Companies, LLC, for engaging in a fraudulent scheme to submit and publicly tout a bogus offer to invest $200 million in Virgin Orbit Hol

dings, Inc. (“Virgin Orbit”), formerly a public company listed on Nasdaq under the ticker symbol VORB. According to the SEC’s complaint, on March 19, 2023, Brown submitted an unsolicited investment offer as Virgin Orbit was teetering on the brink of bankruptcy. Brown told Virgin Orbit’s CEO that he had previously invested hundreds of millions of dollars of his “personal capital,” primarily in space companies. To convince Virgin Orbit that his offer was legitimate, the SEC alleges that Brown sent Virgin Orbit a fabricated screenshot of his company’s bank account purporting to show a balance of over $182 million dollars. The SEC alleges that the bank account actually had less than $1. In addition, the SEC claims that Brown told Virgin Orbit that he held a law degree from Dallas-based Southern Methodist University, when in fact Brown had never graduated from college.

Source: SEC Charges Texas Resident with Submitting Bogus Offer to Invest $200 million in Virgin Orbit