A local man has been indicted on charges alleging he defrauded victims out of more than $6.5 million through an online laundry and dry-cleaning pickup and delivery business.
Benjamin Cantey, 41, of Cincinnati, was charged in a six-count indictment that was unsealed yesterday.
According to the indictment, in 2019, Cantey started Carbon IQ Inc., doing business as Rumby, as a Delaware corporation that he operated out of Cincinnati. Rumby was a venture-backed startup that purported to provide an e-commerce platform for pickup and delivery of laundry and dry cleaning.
Cantey sought to raise investment money as the founder and CEO of the company.
It is alleged that from 2020 through 2022, Cantey defrauded investors and potential investors of money and property. Cantey allegedly lied about his business experience and prior business success to recruit investors. He also allegedly communicated false information that overstated Rumby’s revenue, profits, bank balance, growth and potential growth.
For example, Cantey claimed that Rumby ended May 2022 with a $1.5 million bank balance when in reality the account had a negative balance of approximately -$53,000.
The defendant allegedly spent $850,000 in investor money to help purchase a 5,000-square-feet, $1.7 million home on Garden Place in Cincinnati.
Cantey is charged with four counts of wire fraud and two counts of engaging in monetary transactions in property derived from specified unlawful activity.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; announced the charges. Assistant United States Attorney Matthew C. Singer is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
The indictment states that Cantey started Carbon IQ Inc., doing business as Rumby, in 2019 and operated it out of Cincinnati.
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Key Facts
- State: Ohio
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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