Indian technology entrepreneurs have been convicted of fraud and others have been arrested in separate cases, according to the Ministry of Justice.
Manish Lachwani, Co-Founder Headspin, was arrested on Tuesday and was indicted by securities fraud, Stephanie Hinds, the Federal Prosecutor in San Francisco announced on Wednesday.
The prosecutor alleged that he exaggerated the company’s revenue when looking for investment in startup when he served as his CEO.
This caused the company’s assessment to jump to $ 1.1 billion but dropped to $ 300 million when the income overstatement was found, the prosecutor said in their complaints.
Before the difference was found, investors had invested in the company, according to prosecutors.
Headspin demanded himself on his website as “the first digital experience in the world of AI (artificial intelligence) platform.”
It is said that the company offers “global testing, performance monitoring, and QOE management platform (quality experience) to help organizations ensure optimal digital experience cross cellular and web shipping channels.)
Mukund Mohan, who acknowledged his Twitter feed that “I (possibly) the most stupid person in the world,” sentenced to two years in prison by a federal judge for fraud to get $ 1.8 million in government assistance to help the company affected by Covid- 19 Crisis, said the department on Tuesday.
He has admitted in March before the federal judge for fraud.
He was accused of submitting a false document that claimed to have dozens of employees at a company called Mahejo Inc. for whom he had paid millions of wages and taxes while the company did not have employees or business activities.
He also claimed to have another company and submitted eight applications for Federal Covid-19 aid loans with a total of $ 5.5 million, but only five were approved and he had collected only $ 1.8 million.
According to LinkedIn the biodata, he has worked in a senior position with Microsoft and Amazon, but he has left the company a few years ago.
He described himself as a “investment literacy coach” on his website and his Twitter feed provided a stable business news flow until Tuesday night.
