© Reuters.
SAN FRANCISCO – Mike Rothenberg, the once-prominent founding father of Rothenberg Ventures Administration Firm LLC, has been convicted for defrauding traders of $18 million. The funds have been misappropriated for private use, together with financing a racing crew. Rothenberg’s agency was identified for its high-profile investments in firms resembling SpaceX and Robinhood (NASDAQ:).
The conviction follows a sequence of authorized challenges for Rothenberg, who settled with the Securities and Change Fee (SEC) in January 2020 for $31 million with out admitting any wrongdoing. Moreover, he confronted a securities trade ban for 5 years. Regardless of these setbacks, his authorized troubles continued when a second trial was performed after an preliminary trial resulted in a hung jury. This time, he was discovered responsible on all counts.
Rothenberg’s fraudulent actions got here into the general public eye after a Bloomberg Information profile highlighted his misconduct. His background as a Harvard Enterprise College graduate aided him in elevating over $50 million from traders. Throughout his tenure on the helm of Rothenberg Ventures, he was identified for internet hosting lavish occasions that catered to tech elites, together with renting out the San Francisco Giants’ stadium and flying visitors in hot-air balloons over Napa Valley.
Along with investor fraud, Rothenberg additionally deceived Silicon Valley Financial institution with false data on mortgage purposes. As he awaits sentencing in March 2024, he faces the potential for extreme jail time and fines.
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