Fraud Charges Against Tech Company

On Behalf of | Sep 15, 2021 | Uncategorized |

There are times when only the most experienced, aggressive legal representation will be able to adequately defend you against criminal charges. When the charges and potential penalties are severe, and when the evidence is powerful, you must work with an attorney with proven ability to get the job done.

In a recent case in point, a co-founder and former CEO of Silicon Valley tech company, HeadSpin, is facing charges of securities fraud and wire fraud, according the report from Reuters online.

The HeadSpin case

HeadSpin is a technology company that serves individuals and companies who are putting out products and services into a digital environment. Founded in 2015, the company provides performance monitoring, global testing and other services “to help organizations assure optimal digital experiences across mobile and web delivery channels,” according to the company’s website.

A former CEO and original co-founder of the company is now facing charges of defrauding HeadSpin investors of upwards of $80 million. According to the allegations, the former CEO, between 2018 and 2020, misrepresented the company’s ability to attract and retain business. The alleged scheme included counting revenue from potential customers who had not yet agreed to use the company’s services, as well as customers who were no longer contracted with HeadSpin.

HeadSpin was considered “a unicorn” (a privately held startup worth at least $1 billion), in large part because of the allegedly fraudulent financial metric reporting.

Fighting back

It is critical to note that, currently, the former CEO has only been charged; in other words, these are just allegations that the government will have to prove beyond a reasonable doubt to secure a conviction. In our legal system, an accused party (the defendant in a criminal case) is presumed innocent until proven guilty.

The Reuters report, and for the most part most general news reports of this kind, do not present the finer details about the actual actions allegedly taken by the accused, the manner of the investigation and arrest, or several other factors that could affect the outcome of the case or help form the defense strategy in a case like this.

Although the allegations are certainly serious, there are numerous ways the defendant can fight back to protect his rights. For example, a skilled attorney might challenge the way evidence was obtained, prove a defendant’s actual innocence or the government’s inability to prove the defendant guilty beyond a reasonable doubt, or find other reasons to convince the prosecution or Court to dismiss the charges completely.

If you have been charged with a white-collar crime like securities fraud or wire fraud, you need to work with an experienced lawyer who has handled cases like this before. A skilled attorney, with knowledge and experience handling complex white-collar cases, will be able to help you minimize the damage and possibly get your case dismissed.


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