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Monday, October 13, 2014

San Francisco Tech CEO Admits He Ripped Off Investors, Blew Thousands on Vacation

Posted By on Mon, Oct 13, 2014 at 7:27 AM

click to enlarge Mills just admitted to ripping off investors and blowing the money on parties in Las Vegas and Coachella - JON MILLS / GOOGLE PLUS
  • Jon Mills / Google Plus
  • Mills just admitted to ripping off investors and blowing the money on parties in Las Vegas and Coachella
A former San Francisco tech CEO pleaded guilty to wire fraud in federal court, admitting that he spent $765,000 of his victims’ money on vacations and entertainment after he coerced them into investing in his company.

Jonathan Edward Mills, founder of Motionloft, Inc., told victims that a major Silicon Valley company was about to acquire his company.

That wasn’t the case, he admitted in court, but his victims were convinced they would gain partial ownership of his company and reap massive profits from their contributions.

Mills, 30, then spent the money lavishly on entertainment, which included a Las Vegas penthouse-party that featured a private performance by singer Miguel and a trip to the Coachella Valley Music and Arts Festival, TechCrunch reported.

The FBI arrested Mills Feb. 19 on two counts of wire fraud, which he admitted to, and four counts of money laundering after Motionloft fired him in December. He pleaded guilty in federal court last week to both counts.

He now faces 20 years in prison for each count of wire fraud, alongside multiple fines up to $250,000 each, and is expected to return to court Feb. 3, 2015.

Motionloft, a data analytics company, confirmed the arrest of its former CEO and founder in a press release where it insisted the company continues to grow.
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