News and Press Releases

Former CEO Of Technology Start-Up Indicted For Wire Fraud And Money Laundering

FOR IMMEDIATE RELEASE
March 14, 2014

SAN FRANCISCO – Yesterday a grand jury indicted Jonathan Edward (“Jon”) Mills, the former Chief Executive Officer of a San Francisco-based technology company, for wire fraud and money laundering, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.

Mills, 30, of San Francisco, founded technology company Motionloft, Inc., and served as its CEO until he was fired on or about December 1, 2013. According to the Indictment, Mills falsely told several individuals that Motionloft was going to be acquired by a well-known multinational company based in Silicon Valley, and that these individuals could invest in Motionloft and reap massive profits after the acquisition closed. However, Mills used at least a substantial portion of these investments on himself, including private jet excursions, a penthouse suite rental, vacations, and to pay off other victims. According to court documents, representatives of the purported acquiring company and Motionloft’s largest investor have both stated there was no such possible acquisition of Motionloft.

Mills was arrested on February 19, 2014, in San Francisco, and he made his initial appearance in federal court in San Francisco the following day. Mills remained in custody until on or about February 28, when a relative posted property to secure his release to a halfway house pending trial. Mills’ next court appearance is Friday, March 14, at 9:30 a.m. before the Honorable Nathanael Cousins, United States Magistrate Court Judge.

The maximum statutory penalty for each count of wire fraud, in violation of Title 18, United States Code, Section 1343, is 20 years in prison, a fine of $250,000, plus restitution. The maximum penalty for money laundering, in violation of Title 18, United States Code, Section 1957, is 10 years in prison, a $250,000 fine, plus restitution. Any sentence following conviction, however, would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Doug Sprague is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the Federal Bureau of Investigation.

Please note that an indictment contains only allegations against an individual and, as with all defendants, Mills must be presumed innocent unless and until proven guilty.

(Mills indictment )

 

 

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