Former CEO and Founder of Technological innovation Business Sentenced for his Function in Investment-Fraud Scheme | OPA

A Virginia gentleman was sentenced currently to extra than 8 many years in jail for his involvement in a fraud plan resulting in tens of millions of pounds of losses to traders.

Daniel Boice, 41, of Alexandria, pleaded guilty to one particular count of securities fraud and 1 rely of wire fraud on Dec. 3, 2020. In accordance to court files, commencing in 2015, Boice fraudulently solicited investments in Trustify, an Arlington-centered company that Boice promoted as the “Uber” of personal investigator products and services. Boice elevated far more than $18 million from above 250 person and company traders by, among other items, falsely overstating Trustify’s monetary effectiveness. To protected trader money, Boice inflated Trustify’s month-to-month and annual revenues in thorough fraudulent monetary statements and investor displays, and he fabricated significant company business associations to help his untrue statements about Trustify’s development. In addition, Boice created a bogus e-mail account to pose as a outstanding opportunity investor, and he then utilised the account to send a fraudulent electronic mail to efficiently convince an investment business to spend just about $2 million in Trustify.

Boice also created untrue statements to investors about the amount of money of trader funds that he would individually receive, whilst diverting a significant sum of the investor cash to his personal gain. Boice personally derived at the very least $3.7 million in proceeds from the fraud, such as many million bucks in transfers from Trustify to lender accounts beneath his manage and in own rates on credit score playing cards compensated with Trustify cash. Boice diverted Trustify cash, for instance, to protected the down payment on a $1.6 million house in Alexandria and a $1 million seaside house in New Jersey, as well as to shell out for a chauffeur, residence manager, and numerous luxury items. Boice also utilised Trustify cash to spend for family members vacations, private jet trips, and over $100,000 for high quality seats at sporting events.

In 2019, confronted with declining revenues and the effects of Boice’s diversion of corporation belongings for his personal expenses, Trustify was placed into corporate receivership by the Delaware Chancery Courtroom. The company’s collapse led to above $18 million in losses to buyers and over $250,000 in unpaid wages and associated fees for Trustify’s staff members.

Moreover, Boice was requested to pay out $18,131,742.21 in restitution and forfeit $3.7 million.

Acting Assistant Attorney Basic Nicholas L. McQuaid of the Justice Department’s Felony Division Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia and Exclusive Agent in Charge James A. Dawson of the FBI’s Washington Industry Place of work Prison Division built the announcement.

The FBI’s Washington Area Office investigated the scenario with assistance from the Virginia State Company Fee. 

Trial Lawyer Blake Goebel of the Justice Department’s Fraud Section and Assistant U.S. Lawyer Russell L. Carlberg of the U.S. Attorney’s Office for the Eastern District of Virginia prosecuted the circumstance.