Sean Grusd Sentenced to 7 Years for $23 Million Fake Startup Investment Fund Scheme

Case from 2023–2024 (U.S. Attorney's Office latest release: Oct. 18, 2024). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

Sean Grusd, 32, of Los Angeles, was sentenced Oct. 16, 2024, to seven years in federal prison and ordered to pay more than $21 million in restitution for a fake investment scheme in which more than a dozen victims put $23.1 million into his funds, the U.S. Attorney's Office for the Northern District of Illinois announced [1]. He pleaded guilty in 2023 in federal court in Chicago to wire fraud and was sentenced by U.S. District Judge Sara L. Ellis.

How the scheme worked

According to the U.S. Attorney's Office [1] [2]:

1. Three funds. Grusd formed Dylan Ventures LLC, November Acquisitions SPV LLC and December Acquisitions SPV LLC. He said they would invest in private financial technology companies.
2. False track record. Starting in 2021, his marketing materials falsely claimed that one fund had been an early investor in startups such as Instacart, Coinbase and Shippo. He also falsely claimed he had graduated from a prestigious law school and managed the personal portfolio of the CEO of a large investment firm.
3. Forged documents. According to the charging document, he gave victims fake stock certificates. One showed November Acquisitions paying $50 million for shares in one company, and another showed December Acquisitions paying $100 million for shares in a second. Neither purchase happened. He also gave one victim a fake bank statement showing $133 million in an account that actually held nothing.
4. Spending the money. Instead of investing, he moved the money into his personal accounts. He spent it on high-end cars, luxury condos in Chicago and Montreal, and travel and entertainment. The release says many victims had invested much of their life savings.

"Defendant's fraud was brazen and unmitigated," Assistant U.S. Attorney Corey B. Rubenstein wrote in the government's sentencing memorandum, as quoted in the release [1].

The person sentenced

Sean Grusd, 32, Los Angeles, Calif. [1]

• Charge: wire fraud, filed by information in April 2023 [2].
• Plea: guilty (2023).
• Sentence: 7 years in prison and more than $21 million in restitution, imposed Oct. 16, 2024.
• Investigation: FBI Chicago.

Red flags

• A fund manager claiming early stakes in famous startups. Check those claims with the companies or with SEC filings (Form D, Form ADV).
• Stock certificates or bank statements you can't confirm with the issuing company or bank yourself.
• Credentials that don't hold up. Check law school graduation, bar membership and client claims.

What to do if you're targeted

1. Look up the manager and fund on adviserinfo.sec.gov and FINRA BrokerCheck.
2. Use a qualified custodian and insist on audited financial statements.
3. Report suspected fraud to the SEC at sec.gov/tcr and to the FBI at ic3.gov.

Case status (as of Oct. 16, 2026)

Defendant	Court	Status as of Oct. 16, 2026	Source
Sean Grusd, 32, Los Angeles	N.D. Ill.	Pleaded guilty to wire fraud (2023); sentenced Oct. 16, 2024, to 7 years and $21M+ restitution	[1], [2]

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "California Man Sentenced to Seven Years in Federal Prison for Orchestrating $23 Million Fraud Scheme," Oct. 18, 2024. https://www.justice.gov/usao-ndil/pr/california-man-sentenced-seven-years-federal-prison-orchestrating-23-million-fraud
2. U.S. Attorney's Office, Northern District of Illinois, "California Man Charged in $23 Million Fraudulent Investment Scheme," April 3, 2023. https://www.justice.gov/usao-ndil/pr/california-man-charged-23-million-fraudulent-investment-scheme

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