2025-11-13 DOJ SDNY press_release 114 KB 2,035 chars

Statement Of United States Attorney Jay Clayton On The Convictions Of Michael Castillero, Francine Lanaia, And Brian Martinsen

Caption
United States v. Michael Castillero, et al.
Source JSON
summary

Michael Castillero, Francine Lanaia, and Brian Martinsen were convicted of securities, wire, and investment adviser fraud for defrauding pre-IPO investors through StraightPath Venture Partners.

paragraph

Michael Castillero, Francine Lanaia, and Brian Martinsen were convicted by a unanimous jury for orchestrating a fraudulent scheme via StraightPath Venture Partners. The defendants were charged with securities fraud, wire fraud, and investment adviser fraud. While specific total dollar amounts were not explicitly detailed, the scheme involved defrauding retail investors through hidden exorbitant fees and misleading disclosures.

narrative

Michael Castillero, Francine Lanaia, and Brian Martinsen have been convicted by a unanimous jury for operating a fraudulent scheme through their firm, StraightPath Venture Partners. The defendants utilized high-pressure sales tactics, false disclosures, and hidden exorbitant fees to defraud retail investors seeking opportunities in private pre-IPO companies. They were found guilty of securities fraud, wire fraud, and investment adviser fraud. The U.S. Attorney’s Office for the Southern District of New York announced the convictions on November 13, 2025. This case underscores the government's commitment to maintaining integrity within the pre-IPO and small-cap markets. Ultimately, the prosecution aims to ensure that less well-known securities markets are not used as a loophole for deceptive practices.

Enriched metadata

Scheme
pre-ipo-fraud (100%)
Court
Southern District of New York
Entity
StraightPath Venture Partners
Classified pre-ipo-fraud(confidence 100%). EDGAR detection: forms S-1/Form D/1-A· recall 72% / precision 8%. detection rule →
Statutes
15 U.S.C. § 77q(a)18 U.S.C. § 134315 U.S.C. § 80b-6
Parties
United States of AmericaMichael CastilleroFrancine LanaiaBrian Martinsen
Keywords
michael castillerocastillero francinefrancine lanaialanaia brianbrian martinsenlinkclayton convictionsconvictions michaelgovernment non-governmentnon-government sitessites typicallytypically appearappear externalexternal linklink icon

Extracted insights

Entities 7
  • person brian martinsen
  • person francine lanaia
  • person michael castillero
  • person retail investors
  • scheme_term securities fraud, wire fraud, and investment adviser fraud
  • scheme_term securities fraud, wire fraud, and investment, and investment adviser fraud
  • company straightpath venture partners
Triples 11
  • Michael Castillero committed securities fraud, wire fraud, and investment, and investment adviser fraud
  • Francine Lanaia committed securities fraud, wire fraud, and investment adviser fraud
  • Brian Martinsen committed securities fraud, wire fraud, and investment adviser fraud
  • Michael Castillero used high-pressure sales tactics, false disclosures, and hidden fees
  • Francine Lanaia used high-pressure sales tactics, false disclosures, and hidden fees
  • Brian Martinsen used high-pressure sales tactics, false disclosures, and hidden fees
  • Michael Castillero defrauded retail investors
  • Francine Lanaia defrauded retail investors
  • Brian Martinsen defrauded retail investors
  • StraightPath Venture Partners operated pre-IPO markets
  • United States Attorney Jay Clayton announced convictions of Michael Castillero, Francine Lanaia, and Brian Martinsen
View original DOJ press releasejustice.gov
Extracted body text (2,035c) 
Press Release Statement Of United States Attorney Jay Clayton On The Convictions Of Michael Castillero, Francine Lanaia, And Brian Martinsen Thursday, November 13, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York “Our pre-IPO markets are important to investors, entrepreneurs, and our economy. Their integrity is critical to our continued leadership in technology, healthcare, energy, and other key industries. A unanimous jury has found that Michael Castillero, Francine Lanaia, and Brian Martinsen committed securities fraud, wire fraud, and investment adviser fraud through their firm, StraightPath Venture Partners. The defendants used high-pressure sales tactics, false and misleading disclosures, and hidden exorbitant fees to defraud retail investors seeking to invest in private companies that had not yet had initial public offerings. I commend the career prosecutors and law enforcement agents for their work to protect investors in this important marketplace. We and our law enforcement partners are focused on our pre-IPO markets and our listed small cap markets. Our message is clear: marketing and trading in less well-known securities does not give you a pass to commit fraud.” Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated November 13, 2025 Topic Securities, Commodities, & Investment Fraud Component USAO - New York, Southern Press Release Number: 25-237
OCR text (2,035c · html-text · 99% conf) 
Press Release Statement Of United States Attorney Jay Clayton On The Convictions Of Michael Castillero, Francine Lanaia, And Brian Martinsen Thursday, November 13, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York “Our pre-IPO markets are important to investors, entrepreneurs, and our economy. Their integrity is critical to our continued leadership in technology, healthcare, energy, and other key industries. A unanimous jury has found that Michael Castillero, Francine Lanaia, and Brian Martinsen committed securities fraud, wire fraud, and investment adviser fraud through their firm, StraightPath Venture Partners. The defendants used high-pressure sales tactics, false and misleading disclosures, and hidden exorbitant fees to defraud retail investors seeking to invest in private companies that had not yet had initial public offerings. I commend the career prosecutors and law enforcement agents for their work to protect investors in this important marketplace. We and our law enforcement partners are focused on our pre-IPO markets and our listed small cap markets. Our message is clear: marketing and trading in less well-known securities does not give you a pass to commit fraud.” Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated November 13, 2025 Topic Securities, Commodities, & Investment Fraud Component USAO - New York, Southern Press Release Number: 25-237