Tax startup CEO allegedly faked credentials to raise $13.3 million from investors
Shiloh Luckey, the former CEO of a tax compliance startup, has been arrested for allegedly defrauding investors of $13.3 million. Prosecutors claim she faked her credentials as a CPA and fabricated revenue figures to fund a lavish lifestyle.
Why it matters
This case highlights the risks of venture capital fraud and the importance of due diligence in the startup ecosystem.
Federal agents arrested the former head of a Los Angeles tax compliance startup in Fort Lauderdale, Florida, as she was trying to board a luxury cruise ship. She has been charged with defrauding venture capital funds of more than $13 million (£10 million). Shiloh Luckey, 42, also known as Shiloh Johnson, was arrested on Sunday and later released on bond by a federal court in Florida, according to a press release from the United States Attorney’s Office for the Central District of California. Federal prosecutors allege that Luckey tricked investors into putting money into her now-defunct company, ComplYant App Inc, by falsely claiming she was a licensed certified public accountant (CPA) and making up the company’s recurring revenue figures.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in