SAN FRANCISCO – Abraham Shafi, 38, of Pepeekeo, Hawaii, is facing federal charges of wire fraud, securities fraud, and obstruction of justice, following an indictment unsealed today. The former CEO and founder of the social media startup Get Together – known as “IRL” – allegedly swindled investors out of a staggering $170 million. This wasn’t innovation; it was a calculated deception, according to the Department of Justice.
The scheme revolved around Get Together’s 2021 “Series C” funding round, which valued the company at over $1 billion. Shafi pitched a narrative of lean spending and organic growth, telling potential investors that IRL spent a mere $50,000 a month on paid advertising and that user signups were legitimate. The reality, prosecutors say, was far different. Shafi poured millions into “incentive advertising” – paying users in other apps to download IRL – a practice he actively concealed. He even directed his ad vendor to initiate a “big burst” of these paid installs just before the funding round, artificially inflating user numbers.
When investors directly questioned him about paid advertising, Shafi doubled down on the lie, claiming “[u]nlike other apps that spend aggressively to acquire new users, we spend very little.” To maintain the facade, Shafi routed the payments for incentive ads through a third-party firm, effectively burying the expenses from IRL’s official books. This wasn’t just a misrepresentation; it was a deliberate attempt to mislead those who entrusted him with their capital, sources close to the investigation told Grimy Times.
The deception continued even after the $170 million landed in IRL’s accounts. Shafi allegedly instructed an employee to fabricate invoices, reclassifying ad spending as “infrastructure” or “infra costs.” He then repeated the false narrative to investors, claiming the funds weren’t used for incentivized downloads. But the cover-up didn’t end there. When the Securities and Exchange Commission (SEC) began investigating IRL, Shafi attempted to destroy evidence by restoring his phone to an older backup – wiping out crucial records – and allegedly instructed other employees to lie about his involvement.
Shafi is now charged with wire fraud, securities fraud, and obstruction of justice. Each count carries a maximum penalty of 20 years in prison. The sentencing, however, will be determined by a federal judge, taking into account U.S. Sentencing Guidelines and other relevant factors. This case underscores the dangers lurking beneath the surface of Silicon Valley’s high-growth culture, where hype and inflated valuations can often mask criminal intent.
The investigation is being led by the FBI. United States Attorney Craig H. Missakian, Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division, and FBI Special Agent in Charge Sanjay Virmani announced the charges. Assistant U.S. Attorneys Sailaja Paidipaty and Evan Mateer for the Northern District of California, alongside Acting Assistant Chief Attorney Laura Connelly of the Criminal Division’s Fraud Section, are prosecuting the case. It is critical to remember that an indictment is merely an allegation, and Shafi is presumed innocent until proven guilty beyond a reasonable doubt.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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