FRAUDBATCH S18AEROSPACE / SPACE TRANSPORT

Momentus

SEC fraud charges over fabricated propulsion-test results and concealed CFIUS national-security block. $7M company penalty + $2M CEO penalty.

$1.2B (via SPAC)

Capital Raised

$1.2B

Peak Value

9+ YRS

Lifespan

$10M+ in combined civil penalties

Body Count

AUTOPSY REPORT

In-space transport startup that took the Stable Road SPAC route to a $1.2B valuation. The SEC charged the company in July 2021, alleging Momentus told investors its water-plasma propulsion was 'successfully tested' in space when the only flight test failed its primary objectives, and concealed that CFIUS deemed CEO Kokorich a national-security risk that blocked essential operating licenses . Kokorich settled SEC fraud claims for a $2M civil penalty in 2022; Momentus paid $7M, sponsor Stable Road paid $1M, and Stable Road CEO Brian Kabot paid $40k. Market cap collapsed >90% post-SPAC.

DAMAGE: $10M+ in combined civil penalties

TIMELINE

2017Founded by Kokorich and Khasis

2018Joins YC S18

2020Stable Road SPAC merger announced at $1.2B valuation

2021-07SEC charges Momentus, Kokorich, and Stable Road with fraud

2021-08SPAC closes at slashed valuation; stock craters

2022Kokorich settles $2M individually

SOURCES

→ SEC press release: Momentus and Stable Road charged with fraud → Bloomberg: Momentus Founder Agrees to $2M Civil Penalty → YC directory: Momentus

← LendUp Bloom Institute of Technology (Lambda School) →

Satirical project. Not affiliated with Y Combinator. All information from public records.