SEC Charges Former CEO of Silicon Valley Startup with Defrauding Investors

According to the SEC’s complaint, filed in federal court in California, Mattes grossly overstated Jumio’s 2013 and 2014 revenues and then sold shares he held personally to investors in the private, secondary market. “Mattes enriched himself at investors’ expense by making false claims about Jumio’s financial results,” said Erin Schneider, Associate Regional Director for the SEC’s San Francisco office. The SEC settled a separate proceeding against Jumio’s former CFO Chad Starkey for failing to exercise reasonable care concerning Jumio’s financial statements and signing stock transfer agreements that falsely implied that Jumio’s board of directors had approved Mattes’ sales.

Source: www.sec.gov