A startup founder was arrested on charges of using VC money to pay for her house and a Caribbean wedding
A startup founder was arrested and charged with crimes for allegedly deceiving VCs and siphoning off funds to pay for her house and her wedding.
Toronto, Canada - 22 June 2022; Shiloh Johnson, Founder & CEO of ComplYant, faced arrest in Fort Lauderdale ahead of her attempt to board a cruise ship. She was released on bond and anticipated a federal court appearance in Los Angeles in the coming weeks. ComplYant, a tax-compliance startup, was founded in 2019 and secured a $5.5 million seed round led by Craft Ventures.
Craft, founded by David Sacks, is a venture firm known for backing high-profile tech entrepreneurs. Prosecutors claim Johnson misrepresented herself as a Certified Public Accountant (CPA) and committed securities fraud, wire fraud, bank fraud, and money laundering. She allegedly used company funds to buy a Los Angeles home, acquire a Tesla, and finance her Caribbean wedding, all according to the 15-page indictment.
The indictment further alleges Johnson wrote a $1.5 million check from an empty company account, deposited it into another bank account, and directed the funds to complete a real estate transaction before the initial bank detected the forged check.
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