Manish Lachwani, the founder of the tech start-up HeadSpin, has pleaded guilty to wire and securities fraud, Tribune India reports.
Lachwani founded Silicon Valley-based HeadSpin in 2015, serving as the CEO until May 2020. According to Business Today, the start-up provided software assistance and access to devices that test mobile apps.
In 2021, Lachwani was arrested and charged with defrauding investors by overstating the company’s revenue, Tribune India reports. From April 2017 to April 2020, HeadSpin raised over $100 million from investors.
The 47-year-old CEO plead guilty on Thursday, April 27. According to a press release from the U.S. Attorney’s Office, Northern District of California, Lachwani admitted in his plea agreement to overstating revenue metrics to potential investors. In total, he was charged with 11 counts of wire fraud, one count of money laundering and four counts of securities fraud.
Lachwani is currently released on bond with a sentencing hearing scheduled for September 27, 2023, at 10:00 a.m. He could face up to 20 years in prison and a fine of $250,000 for each count of wire fraud. He also faces 20 years in prison and a fine of $5 million, plus restitution, for securities fraud.
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