Manhattan federal court has unsealed an indictment charging Ilit Raz, the founder and former CEO of Joonko Diversity, Inc., with securities fraud and wire fraud. Raz is accused of misleading investors out of $27 million by fabricating her company’s customer base and revenues.
Raz’s fraudulent scheme came to light when Joonko filed for bankruptcy protection on May 24, 2024. Investors who had put their faith in Joonko’s innovative AI-based hiring platform now face millions in losses.
According to the indictment, Raz falsely claimed that Joonko had clients like major credit card companies and luxury brands, when in reality these companies were never customers. She also misrepresented Joonko’s revenue figures.
The scam worked by convincing investors to pour approximately $10 million into a Series A round on June 1, 2021, followed by another $17 million in a Series B round on June 2, 2022. The fraudulent representations were key in securing these investments.
In response to a suspicious investor’s request for bank statements, Raz sent an email with falsified records showing a company balance of over $5 million—information she knew was entirely false.
U.S. Attorney Damian Williams warned entrepreneurs that such schemes would be closely watched and vowed to protect market investors from similar frauds. FBI Assistant Director in Charge James Smith emphasized the agency’s dedication to safeguarding the nation’s economic framework against fraudulent schemes like this one.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Drug Trafficking|Fraud & Financial Crimes|Violent Crime|Sex Crimes|Cybercrime|Public Corruption|Weapons|Human Trafficking|White Collar Crime|Organized Crime
- Source: Official Source ↗
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