- Home
- News
- Features
- Topics
- Labor
- Management
- Opinions/Blogs
- Tools & Resources
Former Silicon Valley CEO allegedly defrauded employees of tech start-up
The founder and chief executive officer of a now-defunct Silicon Valley technology start-up company was charged in an indictment unsealed June 7 in Orange County, California, with allegedly defrauding several of his company’s former employees by luring them to join his company based on false and misleading statements about his educational, professional, and financial background, and by allegedly enticing them to continue working for his company by providing them with forged documents purportedly reflecting payments for unpaid salaries, the DOJ announced June 8.
The former CEO was charged with five counts of wire fraud in an indictment alleging that the CEO, while working at his company, “WrkRiot,” falsely claimed that he received a degree from a prestigious New York business school, worked as an analyst at a major financial institution, had access to significant personal wealth, and was investing significant amounts of that money into the company. After certain WrkRiot employees came to learn that WrkRiot’s bank accounts did not contain the capital the CEO claimed to have invested, the indictment alleged that he falsely claimed that a significant portion of the money he pledged to invest was tied up overseas and elsewhere.
It went on to allege that in August 2016, the CEO sent a series of individualized emails to WrkRiot’s employees stating that salary payments were forthcoming and attaching documents purporting to confirm wire transfers from a U.S.-based bank to the bank accounts of the recipient WrkRiot employees. In reality, alleged the indictment, the CEO sent forged wire transfer confirmations in order to induce WrkRiot employees to continue working for the company without being paid.
The FBI investigated the case.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Source:: Former Silicon Valley CEO allegedly defrauded employees of tech start-up
List your business in the premium web directory for free This website is listed under Human Resources Directory
- Celebrating the Resilience of Low-Income Women
- CEOs Get to Retire Comfortably. Workers Like Me Deserve the Same.
- Jobs Increased 339,000 In May, Unemployment Up 0.3% To 3.7%
- The decline of job creation at new establishments
- Contractor faces 2 serious citations after US Department of Labor finds safety failures led to welder’s death at Bonner Bridge demolition project
- Investigation into worker’s severe arm injury finds Cusseta auto parts manufacturer, supplier willfully ignored safety precautions
- ‘It’s a sweat factory’: Instacart workers ready to strike for pay and conditions
- Ships backed up outside US ports pumping out pollutants as they idle
- Privacy fears as Moscow metro rolls out facial recognition pay system
- ‘We are not machines’: Hollywood workers poised to strike for better conditions
- Boeing pilot indicted for allegedly deceiving US regulators over 737 Max
- Ipswich apprentice butcher encourages others to consider industry
- Ipswich apprentice butcher encourages others to consider industry
- Over 10,000 John Deere workers strike over ‘years’ of poor treatment
- Corporations are pledging to be ‘water positive’. What does that mean?
- US Department of Labor investigation of crane collapse, double fatality on Interstate 10 finds Lufkin company failed to assemble crane properly
- For the 6th time in 7 years, federal inspectors find Illinois contractor putting construction workers at risk of industry’s deadliest hazard
- US Department of Labor proposes $83K in fines to healthcare facility for failing to protect workers from coronavirus hazards
- Facebook says it will do more to prevent online hate, harassment
- As U.S. prepares to reopen border, some urge Canada to relax testing requirement
- Biden orders companies to ease supply chain bottlenecks or he’ll ‘call them out’
- What is the ‘new model’ the EU is proposing for Northern Ireland?
- Apple to make 10 million fewer iPhones due to microchip shortage
- US Department of Labor, Mexican Consulate in Boston enter alliance to promote workplace safety, health among New England’s workers
- US Department of Labor sues Austin luxury car dealer that retaliated against employee who raised concerns of coronavirus hazards
- Vaccine hesitant New Yorkers consider leaving the city as mandates take effect
- Carbon emissions ‘will drop just 40% by 2050 with countries’ current pledges’
- House passes bill to raise US debt ceiling through early December
- ‘The stakes couldn’t be higher’: GE urged to invest in green US jobs
- Zellers returns — kind of — but the lowest price isn't quite the law
- Cement makers across world pledge large cut in emissions by 2030
- India faces electricity crisis as coal supplies run critically low
- California justice department to investigate enormous oil spill