Abraham Shafi, Fraud and Obstruction of Justice, California 2021

A brazen scheme to defraud investors of $170 million has landed a former Silicon Valley CEO in hot water. Abraham Shafi, 38, of Pepeekeo, Hawaii, has been charged with wire fraud, securities fraud, and obstruction of justice in connection with the scheme to deceive investors in his social media company, Get Together.

According to court documents, Shafi allegedly committed fraud in connection with Get Together’s 2021 “Series C” funding round, which raised $170 million at a valuation of over $1 billion. In seeking investment, Shafi told potential investors that IRL was spending only $50,000 a month in paid advertising and that user signups “were not incentivized or paid.” However, Shafi had spent millions of dollars on paid advertising in the form of incentive advertising, a form of advertising in which users are provided a reward in a third-party app if they download IRL.

Shafi continued to conceal the amount that IRL was spending in incentive ads after the Series C closed, instructing an IRL employee to create false invoices that listed the ad spending as being related to infrastructure, or “infra costs,” and falsely telling his investors that the money spent on incentive ads had instead been used for other forms of advertising.

The scheme was uncovered, and Shafi is now facing the consequences. He is charged with wire fraud, securities fraud, and obstruction of justice. If convicted, he faces a maximum penalty of 20 years in prison on each count.

Shafi’s case is a stark reminder of the importance of transparency and honesty in business dealings. Investors have a right to know the truth about the companies they invest in, and companies have a responsibility to provide accurate information.

The FBI is investigating the case, and the U.S. Attorney’s Office for the Northern District of California is prosecuting the case. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Defendant: Abraham Shafi

Criminal charges: Wire fraud, securities fraud, and obstruction of justice

City and state: Pepeekeo, Hawaii

Exact date: 2021

Sentence or outcome: Maximum penalty of 20 years in prison on each count

Dollar amounts: $170 million

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