In March 2023, beleaguered rocket company Virgin Orbit thought it had found a lifeline.

A Texas-based investor named Matthew Brown reportedly offered to invest $200 million in the rocket firm, which was teetering on the edge of bankruptcy.

But in a complaint filed on Monday, the SEC alleged that the offer was a sham and that Brown had a negative net worth at the time.

The SEC said Brown misrepresented his personal wealth in conversations with Virgin Orbit, including sending a fabricated screenshot of his company's bank account with a balance of over $182 million dollars, when the actual balance was less than $1.

Brown also appeared on CNBC shortly after entering into discussions with Virgin Orbit despite signing an NDA.

He told the channel he planned to close the deal "in the next 24 hours," and he would "basically be the owner" of Virgin Orbit as a result of the investment.

When Brown's offer leaked to the media, shares in Virgin Orbit went up by over 33%.

The SEC said that the deal collapsed after Brown attempted to request the inclusion of a "break up fee" if the transaction did not close and refused to respond to Virgin Orbit's due diligence inquiries.

The company, once valued at $3.7 billion, filed for bankruptcy less than a month later.