SEC Settles $2.9 Million Crowdfunding Case Against Above: Space Executives
SEC settles claims that Above: Space, formerly Orbital Assembly, misled more than 1,400 investors while raising $2.9 million in five crowdfunding offerings.
Summary
On September 29, 2026, the SEC filed a settled action in Northern California federal court against Alabama start-up Above: Space Development Corporation, formerly Orbital Assembly Corporation, former COO Timothy E. Alatorre, and current CEO Rhonda D. Stevenson. From January 2021 through March 2024, Orbital allegedly raised approximately $2.9 million from more than 1,400 retail investors through five Regulation Crowdfunding offerings while misleading them about project readiness, intellectual property, and aerospace relationships. The complaint says Orbital promoted large-scale space stations within four to six years despite insufficient staffing, technical capabilities, and funding, misrepresented that it held several patents, and implied partnerships with two unnamed, well-known launch-services companies. Alatorre and Stevenson allegedly helped prepare, approve, and distribute claims they should have known were false or misleading.
Without admitting the allegations, all three defendants consented to final judgments, subject to court approval. The judgments would permanently enjoin each defendant from violating Securities Act Section 17(a)(3), additionally enjoin Orbital under Section 17(a)(2), and bar Alatorre and Stevenson from securities offerings, purchases, and sales for three years, except personal-account transactions. Alatorre would pay a $50,000 civil penalty. Stevenson would pay no civil penalty if her Statement of Financial Condition is accurate and complete. The case is SEC v. Alatorre, Stevenson, and Above: Space Development Corporation, No. 3:26-cv-11078.
Christine Hom conducted the investigation with assistance from Jason M. Bussey, supervised by Chrissy Filipp, David Zhou, and Jason H. Lee of the SEC’s San Francisco Regional Office.
Positives
- All three defendants consented to final judgments, subject to court approval, establishing a defined resolution path for the SEC action.
- Permanent injunctions would prohibit future violations of the cited Securities Act provisions if the court approves the settlements.
- Three-year securities participation bars would restrict Alatorre and Stevenson while preserving purchases and sales for their personal accounts.
- Stevenson would avoid a civil penalty if her Statement of Financial Condition proves accurate and complete.
Risks & concerns
- Approximately $2.9 million was raised from more than 1,400 retail investors through five allegedly misleading Regulation Crowdfunding offerings.
- Orbital allegedly promised large-scale space stations within four to six years despite inadequate staffing, technical capabilities, and funding.
- Orbital allegedly misrepresented that it held several patents and implied partnerships with two well-known aerospace launch-services companies.
- Alatorre and Stevenson allegedly helped create, approve, and distribute information they should have known was false or misleading.
- Alatorre faces a $50,000 civil penalty, and both executives face three-year restrictions on securities-market participation.
