NEW YORK (Reuters), The U.S. Securities and Exchange Commission sued a Florida-based firm that claimed it raised more than $410m by promising investors fraudulent access to companies in private hands with the potential to launch initial public offerings.

A civil suit was filed at Manhattan federal court by the SEC. StraightPath Venture Partners LLC sought to freeze assets against its founders and officers, in order to stop “ongoing fraud.”

StraightPath has not yet responded to comment requests.

StraightPath was accused of presenting its pre-IPO investment vehicles to ordinary investors as a means for them to acquire potentially profitable, difficult-to-find shares.

StraightPath did not often have shares and paid “Ponzi”-like fees to certain investors. However, its founders and portfolio manager kept around $75 million of the investor money.

The firm, which is based in Jupiter, Florida, raised $410,000,000 from more than 2200 investors, according to the SEC. This was between November 2017 – February 2022.