SEC Files Complaint Against Matthew Brown Over Alleged Fraudulent Scheme to Invest $200 Million in Virgin Orbit

By Sabela Ojea

The Securities and Exchange Commission filed charges against investor Matthew Brown and his venture capital company for allegedly engaging in a fraudulent scheme to invest $200 million in Virgin Orbit.

According to the complaint, Matthew Brown sent Virgin Orbit a fabricated screenshot of Matthew Brown Companies' bank account showing that it had a balance of more than $182 million, but the account had less than $1 million.

Brown also told Virgin Orbit that he held a law degree from Texas' Southern Methodist University, but he never graduated from college, the SEC said.

Brown submitted the unsolicited investment offer for Virgin Orbit on March 19, 2023, at a time when Virgin Orbit was teetering on the brink of bankruptcy.

Brown later refused to place any funds in escrow and didn't respond to Virgin Orbit's due diligence inquiries, according to the SEC.

Virgin Orbit filed for bankruptcy on April 4, 2023, and was delisted from Nasdaq on May 2, 2023.

Write to Sabela Ojea at [e-mail]; @sabelaojeaguix

(END) Dow Jones Newswires

06-17-24 1623ET