TLDR:
Some high-profile founder fraud cases are heading to court, including those of Slync founder Christopher Kirchner, who is accused of misappropriating $25 million in capital, and Ozy Media founder Carlos Watson, who faces charges of fraud and identity theft. The cases highlight the prevalence of founder fraud in the startup industry and the need for federal regulators to crack down on fraudulent behavior. Prosecutors are warning startup founders that “fake it ’till you make it” culture is not an excuse for fraud and that misleading investors will come at a steep price. However, some founders in fraud cases have argued that exaggerations and optimistic predictions are a normal part of the startup game.
