Authorities arrested the founder and former CEO of HeadSpin on charges of security and wire fraud, reports CBS5.
According to Fortune, Manish Lachwani turned his company into a unicorn in just five years winning the financial backing of Tiger Global, GV, and ICONIQ Capital.
The complaint from the Department of Justice says Lachwani overstated his company’s revenues by $51 million to $55 million.
Eastern Eye reports the complaint alleges he instructed employees to include revenues from potential customers and from past customers who no longer did business with HeadSpin.
The company also is accused of understating its losses by $12 million.
CBS5 reports before joining HeadSpin, Lachwani developed the operating system for Amazon’s Kindle. He also helped to create Appurify, a mobile testing platform.
He faces up to 20 years in prison if convicted of one count of wire fraud and one count of security fraud.
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