In April 2023 Manish Lachwani pleaded guilty in federal court in San Francisco today to wire fraud and securities fraud charges in connection with his scheme to dupe potential investors into supporting the technology start-up he founded and led. Lachwani, 47, of Los Altos, Calif., founded Silicon Valley-based HeadSpin, a company that provided clients with software tools and access to devices to test mobile applications. Lachwani founded the company in 2015 and served as its Chief Executive Officer until May 2020. Between April 2017 and April 2020, HeadSpin raised more than $100 million from investors over multiple rounds of fundraising, leading to a valuation of approximately $1.1 billion. According to his plea agreement, Lachwani admitted that he disseminated false and overstated revenue metrics to potential investors to lure investments into his company. Lachwa was released on bond awaiting sentencing on 11 counts of wire fraud and four counts of securities fraud. The maximum statutory penalty for each count of wire fraud is 20 years in prison and a fine of $250,000. The maximum statutory penalty for securities fraud is 20 years in prison and a fine of $5 million, plus restitution if appropriate.
| Types | Person, Business Person |
| Gender | Male |