On October 25, 2016, Gregory Gray, senior managing director of Archipel Capital, LLC, was sentenced in the Southern District of New York to two years in prison, three years supervised release and ordered to forfeit $5,000,000 and pay $5,000,000 in restitution for securities fraud and perjury in connection with his scheme to defraud an investor of approximately $5 million to cover up mismanagement of other investors’ funds.  Between June 2012 and November 2013, Gray raised over $5 million from approximately 52 investors for four Archipel “Social Media Funds,” promising to purchase pre-IPO shares of Twitter with the funds.  Gray commingled the money with other Archipel funds and left the Social Media Funds without enough money to purchase the 200,000 pre-IPO shares that he had promised investors.  At the time of Twitter’s IPO on November 6, 2013, Gray had purchased only 80,000 pre-IPO shares.  In order to attempt to make up the shortfall, Gray persuaded an investor to invest $5 million in Archipel’s “Late Stage Fund,” promising to purchase a privately held allotment of Uber shares.  Instead, Gray purchased post-IPO Twitter shares and fabricated a stock transfer agreement that purported to show he had purchased Uber shares.  In sworn testimony to the SEC in February 2015, Gray falsely stated that the stock transfer agreement represented a bona fide purchase of Uber shares. United States v. Gray, 1:15-cr-297 (S.D.N.Y.). DOJ Press Release