The tagline from today’s statement from the United States Lawyer’s office for the Southern District of New York states it all:”Adam Rogas Supposedly Raised$123 Million from Financiers Using Financial Declarations that Showed 10s of Millions of Dollars ofIncome and Possessions that Did Not Exist”. Rogas, the co-founder and previous president and primary financial officer and board member of the Las Vegas-based scams prevention company

, NS8, was apprehended by the Federal Bureau of Examination and charged in Manhattan court with securities fraud, fraud in the offer of sale of securities, and wire scams earlier today. Last week, the company laid off numerous personnel as reports of an investigation by the Securities and Exchange Commission surfaced, according to a report in Forbes.”This is a rapidly developing circumstance, “Lightspeed Ventures told Forbes in a declaration.”We are shocked by the news and have actually taken actions to notify our LPs. It would be premature to comment further

at this time.”Lightspeed Ventures helped lead NS8’s$123 million Series A this June. Other financiers include Edison Partners, Lytical Ventures, Sorenson Ventures, Arbor Ventures, Hillcrest Endeavor Partners, Blu Endeavor Investors, and Bloomberg Beta , per Crunchbase data. The claims are, certainly, stunning.” As declared, Adam Rogas was the proverbial fox protecting the henhouse, “said Audrey Strauss, the acting U.S. Attorney for the Southern District of New York, in a declaration.”While raising over$100 million from financiers for his fraud prevention business, Rogas himself presumably was taking part in a brazen scams. Today’s arrest of Rogas guarantees that he will be held liable for his alleged plan. “Presumably, while Rogas remained in control of the savings account and

spreadsheets that detailed its deals with

customers, he cooked the books to show millions in deals that did not exist. From January 2019 through February 2020, the FBI alleges that someplace between 40 percent and 95 percent of the purported total possessions on NS8’s balance sheet were fictitious, according to the declaration. Over the very same period bank Rogas modified bank declarations to show$40 million in income that merely were not there, according to the Justice Department’s allegations. On the back of that phony monetary data, NS8 had the ability to raise over$120 million from some leading tier investment companies including Lightspeed Venture Partners and AXA Ventures. Rogas managed to scam

not just the investment companies, but the auditors who were carrying out due diligence on their behalf. After the round was completed, NS8 did a secondary offering which let Rogas cash out of $17.5 million through individual sales and through a company he controlled, according to the statement from the DOJ.”It seems paradoxical that the co-founder of a business developed to prevent online fraud would

take part in fraudulent activity himself, however today that’s precisely what we declare Adam Rogas did. Rogas apparently raised millions of dollars from investors based upon fictitious monetary affirmations, and in

completion, walked away with nearly$ 17.5 million worth of that money, “said FBI Assistant Director William F. Sweeney Jr.” Within our complicated financial crimes branch, securities scams cases stay amongst our leading concerns. We have actually seen far too many examples of deceitful actors taking part in this kind of criminal activity, and we continue to work vigilantly

to weed out this habits whenever and any place we discover it.”Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.