Timothy E. Alatorre, Rhonda D. Stevenson, and Above: Space Development Corporation f/k/a Orbital Assembly Corporation
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26655 / September 29, 2026
Securities and Exchange Commission v. Timothy E. Alatorre, Rhonda D. Stevenson, and Above: Space Development Corporation f/k/a Orbital Assembly Corporation, No. 3:26-cv-11078 (N.D. Cal. filed Sept. 29, 2026)
SEC Files Settled Action Against Start-Up Space Station Construction Company, Its CEO, and Its Former COO
On September 29, 2026, the Securities and Exchange Commission filed settled charges against Above: Space Development Corporation f/k/a Orbital Assembly Corporation (“Orbital”), an Alabama-based start-up company that purported to design and construct space stations, as well as Orbital’s former Chief Operating Officer Timothy E. Alatorre and current Chief Executive Officer Rhonda D. Stevenson, in connection with providing allegedly misleading information to investors about the status of Orbital’s projects, its intellectual property, and its relationships with other space industry companies.
According to the SEC’s complaint, filed in the U.S. District Court for the Northern District of California, between January 2021 and March 2024, Orbital raised approximately $2.9 million from more than 1,400 retail investors through five securities offerings conducted pursuant to Regulation Crowdfunding. As alleged, in offering materials, Orbital misrepresented to investors that it would design and construct large-scale space stations within four to six years, even though it knew or should have known that it lacked the staffing, technical capabilities, and funding, among other things, to realistically achieve its stated timelines. In addition, as alleged, Orbital made misrepresentations to investors about having several patents and created the misleading impression it had partnerships with two well-known aerospace launch service companies. The SEC further alleges that Alatorre and Stevenson approved and helped create, draft, and arrange for the dissemination of Orbital’s misrepresentations and misleading information, which they should have known were false or misleading.
Without admitting the allegations in the SEC’s complaint, Alatorre, Stevenson, and Orbital each consented to the entry of final judgments, subject to court approval, that would permanently enjoin them from violating Section 17(a)(3) of the Securities Act of 1933, and, as to Orbital, further Section 17(a)(2) of the Securities Act; enjoin Alatorre and Stevenson for a period of three years from directly or indirectly participating in the issuance, purchase, offer, or sale of any security, except for purchases or sales for their own personal accounts; order Alatorre to pay a $50,000 civil penalty; and decline to order a civil penalty against Stevenson contingent upon the accuracy and completeness of her Statement of Financial Condition.
The SEC’s investigation was conducted by Christine Hom, with assistance from Jason M. Bussey, and was supervised by Chrissy Filipp, David Zhou, and Jason H. Lee, all of the SEC’s San Francisco Regional Office.