Adam Rogas, the founder, and CEO of NS8, which produces a platform that examines every transaction and allows only those who are not suspected of any fraud, was arrested in Las Vegas last Thursday on suspicion of investor fraud.
The company claims that it is able to prevent advertising scams (click scams and the like designed to eat up your advertising budgets) and all this through device identification, behavioral information, and more designed to determine if the person seeking to make a transaction is a real person or any scam experience.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.
Already last week the company laid off hundreds of employees in light of an investigation by the United States Securities and Exchange Commission, but last Thursday as mentioned, the incident reached its peak.
According to a statement from the Central Prosecutor’s Office in Southern New York County: “Adam Rogas allegedly raised $123 million from investors through financial statements that presented tens of millions of dollars in non-existent profits and assets.” District Attorney Audrey Strauss even used harsh words: “According to the suspects, Adam Rogas was the cat who kept the cream.”
Last June, NS8 raised $ 123 million in Round A from particularly prominent funds: Lightspeed Ventures, Edison, Lytical Ventures, Sorenson, Arbor, Hillcrest, Blu, and Bloomberg Data. In response to a report in Forbes, Lightspeed said: “We are shocked by the news, and have taken steps to inform our partners. It is too early to comment at this stage. ”
According to information provided by the district attorney, Rogas allegedly held bank accounts and printouts detailing transactions with the company’s customers, and he took advantage of this approach to change the data he presented to his investors. The FBI claims that between 40% and 95% of the assets presented in the company’s reports simply do not exist and that Rogas himself will pocket $17.5 million of the investment money. If found guilty, Rogas could find himself serving a sentence of up to 20-25 years in prison for fraud offenses.
