NEW YORK, Reuters – A Florida company claimed it raised $410 million fraudulently by promising investors access private companies that could launch initial public offerings. The U.S. Securities and Exchange Commission reached a settlement.

On Thursday, StraightPath Venture Partners LLC’s founders and the fund manager of the suit that was filed earlier in the month were notified by the SEC.

According to the SEC, the Jupiter-based firm offered its investments as a way for investors to purchase hard-to find pre-IPO shares of private companies such as Impossible Foods, a plant-based burger company, and Kraken, a cryptocurrency exchange. However, the shares were often not available.

StraightPath raised funds from more then 2,200 investors across 14 countries between November 2017 to February 2022. StraightPath agreed to cease soliciting investments.

Commission said that the “exorbitant fees” allowed Eric Lachow, Francine Lanaia, and Michael Castillero to make about $75 million each and nearly $48 millions for their agents.

StraightPath’s lawyer and four of the defendants didn’t immediately reply to my request for comment.

SEC lawyer Lee Greenwood sent a letter to U.S. Circuit Judge Lewis Kaplan, Manhattan federal court. He stated that the settlement involved appointing someone to manage recovering and disbursing remaining funds. Three of the defendants also placed millions of dollars in an escrow account.

Greenwood said that approval by the SEC is required for this settlement to be finalized.