SEC charges YouPlus and CEO with defrauding investors

Re:SEC charges YouPlus and CEO with defrauding investors by vkou on Monday July 20, 2020 @08:27PM (#23903263)

> According to the complaint, Shamim falsely told investors that YouPlus earned millions of dollars in annual revenue and had more than 100 customers, including Fortune 500 companies. When one investor pressed Shamim for information substantiating those claims, Shamim allegedly provided the investor with falsified bank statements in an effort to conceal the fraud. The scheme allegedly unraveled in late 2019 when Shamim confessed to certain investors that YouPlus had in fact earned less than $500,000 and obtained only four paying customers from the company’s inception in 2013.

Seems to be just regular run-of-the-mill fraud.

Fake it till you make it is something to direct at your customers, or at your product's implementation, not at people who are giving you their money, who are protected by the SEC.

I assume that the firm will never be able to make a positive return for its investors, which is why they invoked the nuclear option.

[ Parent | on HN ]

Re:SEC charges YouPlus and CEO with defrauding investors by elliekelly on Monday July 20, 2020 @08:33PM (#23903302)

> Seems to be just regular run-of-the-mill fraud.

I’m surprised the DOJ hasn’t charged them with a crime yet. The money the SEC is seeking has to be long gone right?

[ Parent | on HN ]

Re:SEC charges YouPlus and CEO with defrauding investors by dragonwriter on Monday July 20, 2020 @08:39PM (#23903341)

> I’m surprised the DOJ hasn’t charged them with a crime yet.

When both civil SEC charges and criminal charges by DOJ emerge out of the same act, the former is often well ahead of the latter, so, when civil charges are filed without concurrent criminal charges, one shouldn’t read too much in to it.

Though, as a reply points out, that separation does not actually apply in this case.

EDIT: corrected error of ordering pointed out in a reply, and expanded somewhat for clarity of intent.

[ Parent | on HN ]

Re:SEC charges YouPlus and CEO with defrauding investors by etimberg on Monday July 20, 2020 @09:21PM (#23903528)

From the article

> In a parallel action, the U.S. Attorney’s Office for the Northern District of California today announced criminal charges against Shamim.

[ Parent | on HN ]

Re:SEC charges YouPlus and CEO with defrauding investors by kbenson on Monday July 20, 2020 @08:57PM (#23903427)

So, since DOJ criminal charges awe usually well ahead of SEC civil charges, that means we probably won't see them? Or did you mix up some of the ordering there (as the wording makes it look like maybe you were trying to say we might see DOJ charges eventually because they take longer).

[ Parent | on HN ]