કરોડ 80 million scam in US: Former Indian-origin CEO of technology company arrested

Co-founder of 45-year-old Manish Lachhwani Headspin

From 2015 to March, 2020, he collected 10 100 million from investors and cheated them

WASHINGTON: A former Indian-origin CEO of a technology company has been arrested in the United States in a fraud case. He is accused of defrauding investors of 8 80 million.

The man was arrested Wednesday, according to the Justice Department. He was the co-founder and former CEO of the mobile app Headspin. The complaint alleges that he raised 10 100 million from investors between 2015 and March 2020.

He misinformed investors about the company's annual revenue and also showed the financial situation to be better than real. The department said that when the financial situation was reviewed in mid-2020, the company's revenue was only 63 2.63 million.

While the company’s revenue was shown to be .5 95.3 million. The man could face up to 20 years in prison on the charge. The company's unaudited financial statements were reviewed in May 2020 by an auditing firm.

According to the complaint, Headspin had a cumulative income of 2. 2.63 billion in the first six months of fiscal year 2020, compared to .5 95.3 million in the report. Lachwani developed the first operating system for Amazon's tablet Kindle before setting up Headspin.