Ilit Raz Busted for $27M Securities Scam

Ilit Raz, the 40-year-old founder and former CEO of Joonko Diversity, Inc., was charged with securities fraud and wire fraud for allegedly defrauding investors of $27 million in a scheme that left them with millions in losses.

According to the indictment unsealed in Manhattan federal court, Raz made false claims regarding central aspects of Joonko’s business, including the number of customers the company had and the identity of those customers. Raz allegedly falsely represented that Joonko’s customers included some of the world’s largest companies, but in truth and in fact, these companies were never Joonko customers.

Raz also made false representations about Joonko’s actual and anticipated revenues, which were used to induce investors to pump millions into the company. Specifically, on or about June 1, 2021, several investors, including venture capital firms, invested a total of approximately $10 million in a Series A round with Joonko. On or about June 2, 2022, several investors, including venture capital firms, invested a total of approximately $17 million in a Series B round with Joonko.

In or about 2023, a Joonko investor became suspicious about Joonko’s performance and requested certain information from the company, including bank statements. In response, Raz emailed the investor a purported Joonko bank statement, which depicted that the company had an average balance of over $5,000,000. However, the bank records that Raz emailed were fabricated.

U.S. Attorney Damian Williams said, “Ilit Raz falsely represented key aspects of her company, Joonko Diversity, Inc., and fabricated documents to support those lies in order to obtain $27 million in investments. Raz’s now-bankrupt company allegedly left victim investors with millions of dollars in losses.” FBI Assistant Director in Charge James Smith added, “Ilit Raz defrauded her investors of more than $27 million by misrepresenting the esteem and scope of her clientele as well as grossly inflating the company’s revenue in forged financial statements.”

Joonko filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware on May 24, 2024. The case has been assigned to U.S. District Judge Alvin K. Hellerstein.

Raz’s alleged scheme was uncovered after a Joonko investor became suspicious about the company’s performance and requested information from Joonko. The case serves as a reminder to entrepreneurs tempted to artificially inflate revenues to solicit investments that this Office keeps a watchful eye on funding rounds and will continue to protect market investors.