Trustify cannot be Trusted

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the Washington Post, the CEO for a sort of “Uber for private investigators” called Trustify was sentenced to 97 months this week for fraud.

Questions:

  1. What is the CEO’s name and age?
  2. Did the company make a profit? Explain.
  3. Originally the CEO was sentenced for 9 years. Why was his sentence shortened?
  4. How much money was raised by Trustify’s 250 investors and what happened to it?

Source:

Barakat, M. Tech company founder gets 8 years in prison for stock fraud. The Washington Post, March 26 (Retrievable online at https://www.washingtonpost.com/business/tech-company-founder-gets-8-years-in-prison-for-stock-fraud/2021/03/26/9c879012-8e6d-11eb-a33e-da28941cb9ac_story.html).