: Jon mills, a former in silicon valley are full of dreams, from scratch, create Motionloft company, a successful businessman, step by step is how to use the trust of the friend of his successful cheat as much as $765000? And he is from a everyone admire respect for what reason to a CEO was sentenced to two years imprisonment of fraud?
yellow uniforms in alameda county jail, Jon mills seems to accept the fate. After admitted two telecommunications fraud charges, the young start-ups former CEO on Tuesday afternoon in a federal court trial.
Jon arrived in California five years ago, dreams, look forward to in the silicon valley a shot. He founded the Motionloft company, tiny sensors are used to provide data to store traffic was analyzed. All right, the company’s business, and won the famous exclusive investment venture capitalists mark Cuban.
but these success doesn’t appear to be enough. In early 2013, mills had for more than five people claimed that if they can give you a small sum of money, so they can hold shares in the company. Mills declared that cisco is millions of us dollars to the acquisition of the company value, so he and all Motionloft shareholders will get considerable benefits. As a matter of fact, the acquisition does not exist.
an investor before he discovered this fact, and tell the news to the federal bureau of investigation, makes end mills today accused of telecom fraud and money-laundering charges. Last fall, he formally acknowledged telecom fraud charges, four money laundering crime escaped, he also admitted that he took $765000 from potential investors.
in the end, the U.S. district court judge Richard Seeborg listen to statements from both sides of the federal prosecutors and defense lawyers mills, and make the trial soon.
“this is a serious fraud, in the fraud, he has to make the motivation of victims cheated and defraud, victims of some people is very trust in his friend”, Seeborg said the judge, “although it is not from the start is a scam, but I think it is not clear on charges of Mr Mills, because it wasn’t long before he became very greedy.”
judge ruled that the 31-year-old former CEO will be two years in federal prison. Mills held at the same time, the judge ordered immediately to a federal prison pending trial, refused to give it a chance to continue to cheat.
from fraud since the program began, mills have repaid the money, but now he’s still in debt up to $572000. In addition to the prison and debt repayment, mills have to pay a $6000 fine to the government. After out of prison he will still have three years to be outside prison custody. In addition, the judges, including his lawyer will recommend him to the prison of “drug abuse, family research” project.
mills Harris, an attorney Bruce Taback said in court, “in mills, some things are distorted, the value of his balance needs to be adjusted, so the psychological consultation will have great help to him.”
the phenomenon of cheating on these young ceos in silicon valley is very common, but few would reach the level of criminal fraud. So how mills from ordinary graft to the fraud now?
in those early days, he is a man of harmless
when mills had just arrived in California, he hopes to be able to use the sensor technology to render the so-called “urban traffic vehicles and pedestrians in real-time analysis”.
in 2011, the company’s website is described:
Motionloft company’s sensor device is placed in like a dictionary, the size of the small box. Its simple installation, convenient operation, and in the enterprise installation cost is very low. Our sensor using the cloud data is gathered to facilitate our operation on the dashboard, so you can be real-time monitoring network available to us.
in June 2012 the company announced the west weiss drugstore, saks fifth avenue, Naked Pizza restaurant chain, real estate giant colliers and achieve the global companies are their customers. Although now Motionloft company didn’t explicitly listed client list, but it still has a pivotal position.
fast company magazine in April 2012 to Motionloft company has carried on the simple introduction, and briefly introduces the how to install the company’s products are used. Lunch in San Francisco, a man named Showdogs sausage shop using Motionloft sensors to determine the company it’s busiest period (between 12 to 1).
it can help all kinds of business and trade to find the right place, also can ensure that the business and trade will not deviate from the right place. Mills also told the magazine. “this is good for everyone, business and trade can have more customers, and customers also can according to the right place to find what they need.”
from 2012 to 2013, Motionloft companies constantly expanding, mills began to constantly to the people around the company’s performance and capability, including friends of friends and even his own doctor. Agent in the fbi testimony by Brian Weber called “JD” doctor, is living in the San Francisco bay area visits a doctor. He is met mills in September 2011, and in the next two years has been the physician of mills. (he didn’t respond to Ars request for a comment.)
this discussion about business between two people in the first place does not seem to be involved in what stakes. In November 2013, sent a message to JD mills: “for a long time before I give you to set aside part of the shares in the company, but I’m not sure whether can transfer the shares to you, are you interested in?”
JD reply said: “really? Of course interested, thank you very much.”
Jon scam mills
in the mills and his doctor talk too hot at the same time, he began to crazy to squander the money — — — — — – here in Las Vegas, enjoy a $twenty thousand meal, over there and bought a penthouse. He also made a appearance fee not less than $50000 in R& B singer Miguel private shows. Mills is a fortune for himself and his friends even contracted for private aircraft.
private plane contractor Justin Sullivan told Ars said, “we are in a Friday night in November 2013 received a phone call from mills, he claims that he is the tallest leadership of the company.”
mills want the night flew from San Francisco to Austin, Texas, he said he couldn’t pay for the plane immediately, but he will this charge on Monday early in the morning to the account.
“we will believe that he will arrive early in the morning on Monday? The fact is that we believe.” Sullivan painfully explained, because the private jet business often have this temporary and urgent demand.
private plane business usually need customers have a credit card as collateral, but Sullivan to mills opened the back door. The pilot from the Google search for the business people, search only to a piece of rose. That weekend, mills in Private cumulative Flite company for $100000, flew from San Francisco to Austin, and from Austin, flew to New York.
Sullivan, recalls, “when the situation should be a red flag, I have never seen a person so hesitate profligacy.”
after the end of the celebrations of Texas, Sullivan, waiting for the mills by bank transfer to pay for the plane, on Monday, no remittance, on Tuesday, also does not have the remittance. “Mills can always find a variety of reasons.” Sullivan, found the CEO can always use a variety of details of all kinds of information seamlessly wove his lies.
he remembers mills said, “I am dealing with the bank remittance address, just received my bank there may be a fraud warning, then he will spread some negative news about this bank. These will make you almost sure mills that day really have no way to electronic remittance or he does have encountered when remittance network fraud.”
on Wednesday, Sullivan, a direct flight to San Francisco, found the mills’ address. The businessman said I’m sorry, wrote two checks, one for the payment of fees before, another for future consumption. Both cheques are up next week.
“we eventually got a $100000 payment, but his flying a total of $200000,” Sullivan said. “I’m really very angry, this is really a large amount of fees, and if you have accumulated in the customer to owe so much, he will pay immediately. Mills are really broke through our bottom line.”
by the end of the year, under pressure, mills from the CEO to step aside. On December 1, 2013, he officially left the company.
but mills and JD remain the convention, commitment to $400000 of investment for JD in return for a three percent stake. He also claimed that Cisco will be $760 million bid for the company, and have already paid a deposit of 10%. Mills also told the JD the acquisition will be completed on December 13, 2013.
however, JD themselves do not $400000, he will take out all his property, and borrow from family and friends, he only raised $210000. Mills told him that since the rules of this investment is not, he would use his identity for JD for the $400000 investment, JD can take advantage of future return on equity of three percent in 760 million to pay the remaining $190000.
but on December 13, soon passed, Cisco acquisition but nothing happened. JD began to worry, but continuous mills relieved the doctor says the deal will certainly. On December 21, 2013, mills drafted a share exchange agreement. This looks very formal official document lists Motionloft agreement between the company and the JD. In fact it was mills to write his own words.
when the JD in the cash earnings have been slow to the specified in the agreement, he began to anger. JD’s lawyer, only investors with Motionlof company – Cuban investment company, investment company radical made contact.
Cuban wrote back to say that Motionlof company not Cisco acquisition agreement. He suggests that the lawyer confronted with mills, JD for repayment. He also mentioned that they have heard the same thing from other victims, he received mills take the initiative to send me email also mentioned that he is trying to repay the victim’s loss.
JD his Cuban’s suggestion, he asked that he be mills return of investment, reimbursement deadline by 12 noon on December 31, 2013.
JD wrote: “if you don’t have to repay the investment in accordance with the contract, my attorney and I will report to the police, expose your crimes, and I will Sue you, and to provide to the police before we sign the agreement, don’t try to find excuses and exception.”
a few minutes after the mills to reply, “you really don’t need to do that… As long as you are not in front of my colleagues and friends to debunk it, I will repay your investment as soon as possible.”