By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > Finance > Startup founder pleads guilty to ripping off VC investors with cooked books and phony customer claims
Finance

Startup founder pleads guilty to ripping off VC investors with cooked books and phony customer claims

News Room
Last updated: 2023/06/05 at 4:23 PM
By News Room
Share
2 Min Read
SHARE

She took the phrase “fake it ‘til you make it,” a bit too literally. 

A startup founder has pleaded guilty to cooking the books of her human resources software firm and lying about how many customers it had in order to attract over $5 million from venture capitalists focused on diverse investing.

Crystal Huang, 41, of Lehi, Utah, admitted that she doctored the balance sheets for her company, ProSky Inc., in order to raise funding from venture firms. She also lied about having hundreds of clients and millions of dollars in recurring revenue when she had almost no money coming in, federal prosecutors said.

“Who would have thought that a boring industry like human resources could be disrupted and turned into an exciting, fun, and much-needed industry,” Huang wrote in an online essay in 2018. “That has only been possible because of technology — especially software systems.”

Through the ruse, Huang managed to raise $5 million from 13 different investors in three separate funding rounds between 2015 and 2020, court documents showed. The investors were private equity and venture capital groups  from New York, Illinois, California, Texas, Oregon, Arizona and Japan that focused on financing startups founded by minorities.

A civil lawsuit brought by the Securities and Exchange Commission in 2021 alleged that Huang used significant amounts of the money for herself and her family, including to pay credit card bills and buy property. 

A message left with Huang’s attorney wasn’t immediately returned.

The company’s most recent investment round in late 2019 was led by New York’s Harlem Capital Partners, which agreed to give Huang $750,000 based on the false accounting, according to court filings.

A message left with representatives of Harlem Capital wasn’t immediately returned. 

Huang is scheduled to be sentenced in August. 

Read the full article here

News Room June 5, 2023 June 5, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Bank of America: Higher Yielding Preferred Stock Is Still Attractive (NYSE:BAC)

This article was written byFollowThe Investment Doctor is a financial writer, highlighting…

“Invest in what you know.”

Watch full video on YouTube

‘All the banks were lying’: Tom Hayes on his decade-long battle for justice

The last time Tom Hayes had his picture taken at London’s Southwark…

Tesla Opened A Diner In LA — Here’s What It’s Like

Watch full video on YouTube

Wall Street Roundup: Tesla Skepticism, Google Stands Out, DORK Shorts

Listen below or on the go on Apple Podcasts and Spotify Tesla's…

- Advertisement -
Ad imageAd image

You Might Also Like

Finance

4 Ways To Avoid Fake Shipping Fee Swindles

By News Room
Finance

Dell Supports Endeavor Miami’s Quest To Empower Black Founders

By News Room
Finance

The World’s 10 Most Expensive Cities To Live

By News Room
Finance

Biden Sends Student Loan Forgiveness Emails To 800,000 Borrowers

By News Room
Finance

New Student Loan Forgiveness Application For Those With Medical Issues

By News Room
Finance

Who Really Owns Nursing Homes, And How The Feds Are About To Learn More

By News Room
Finance

Gone Are America’s Cushiest Federal Prisons

By News Room
Finance

Can You Still Get Insurance After A Cancer Diagnosis?

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?