The FBI finally arrested NS8 founder and CEO Adam Rogas after the SEC’s fraud investigation discovered he defrauded buyers for $ 123 million, in response to Tech Information

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A little bit over every week in the past, we wrote about cyber fraud safety expertise startup NS8 after the SEC launched a fraud investigation into the startup and its CEO following the corporate’s $ 100 million summer season funding. Per week earlier, NS8 CEO Adam Rogas abruptly left the corporate and the corporate laid off a whole bunch of workers.

In any case, justice is served. The US Division of Justice (DOJ) introduced right now that “Adam Rogas, founder and CEO of a cyber fraud prevention startup, has been arrested and charged with securities fraud.” The DOJ mentioned, “Adam Rogas allegedly raised $ 123 million from buyers utilizing monetary reviews that confirmed tens of tens of millions of {dollars} in income and property that did not exist.”

In response to the DOJ, ROGAS, 43, of Las Vegas, Nevada, is charged with a variety of securities frauds that end in a most sentence of 20 years in jail, a variety of fraud within the supply or sale of securities that end in a most sentence of imprisonment 5 years and a variety of fraud circumstances with a most sentence of 20 years in jail. The utmost attainable sentences on this case are prescribed by Congress and are given right here for informational functions solely, as any conviction of the accused is set by the decide.

In a press release, the DOJ mentioned:

Audrey Strauss, appearing United States legal professional for the South District of New York, and William F. Sweeney Jr., assistant government director of the New York department of the Federal Bureau of Investigation (“FBI”) introduced right now that ADAM ROGAS, Co-founder and former CEO, CFO and member of the board of administrators of Las Vegas-based cyberfraud prevention firm NS8, Inc. (“NS8”), charged with securities fraud, providing and promoting fraud, and wire fraud in a criticism in federal court docket in Manhattan . ROGAS used fraudulent monetary knowledge to boost over $ 123 million to fund NS8, of which he personally obtained roughly $ 17.5 million. ROGAS was arrested right now within the Nevada district and is because of be offered to a decide tomorrow.

Performing US legal professional from Manhattan, Audrey Strauss, mentioned, “As claimed, Adam Rogas was the proverbial fox who guarded the rooster coop. Whereas Rogas raised over $ 100 million from buyers for his fraud prevention firm, he was allegedly concerned in a cheeky rip-off himself. Right this moment’s arrest of Rogas ensures that he shall be held accountable for his alleged scheme. “

FBI Assistant Director William F. Sweeney Jr. mentioned, “It appears ironic that the co-founder of an organization designed to stop on-line fraud is himself fraudulent, however that’s precisely what we declare right now, Adam Rogas. Rogas reportedly raised tens of millions of {dollars} from buyers primarily based on fictional monetary confirmations and ended up strolling away with almost $ 17.5 million of that cash. In our advanced monetary crime trade, securities fraud circumstances stay a high precedence. We’ve seen far too many examples of unscrupulous actors participating in this sort of felony exercise, and we proceed to work diligently to stamp out this habits every time and wherever we discover it. “

We wrote about NS8 again in June after the fraud prevention startup raised $ 123 million in Sequence A funding to allow small and medium-sized companies to seek out and forestall on-line fraud. The spherical was chaired by Lightspeed Enterprise Companions and AXA Enterprise Companions (AVP).

Based in 2016 by Adam Rogas, NS8’s fraud prevention platform combines behavioral evaluation, real-time scoring, and world monitoring to assist retailers of all sizes streamline order success and reduce danger. This app is predicated on the Defend API and may be built-in instantly into the NS8 platform. Retailers can begin combating fraud in minutes.

ADAM ROGAS co-founded NS8 and was its CEO, CFO and a member of the board of administrators. ROGAS was additionally primarily chargeable for the corporate’s fundraising drives. NS8, headquartered in Las Vegas, Nevada, is a cyber fraud prevention firm that has developed and offered digital instruments that allow on-line retailers to evaluate the danger of fraud in buyer transactions. In Fall 2019 and Spring 2020, NS8 participated in fundraising rounds wherein it issued Sequence A desire shares and obtained roughly $ 123 million in investor funds.


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