Former CEO Of Technology Start-Up Charged In Investment Scheme
SAN FRANCISCO – Jonathan Edward (“Jon”) Mills, the former Chief Executive Officer of a San Francisco-based technology company, has been charged with wire fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
An affidavit filed by FBI Special Agent Brian Weber alleges that Mills, 30, of San Francisco, falsely represented that Motionloft, Inc., a company he founded and served as its CEO, was going to be acquired by Cisco, Inc., and that Cisco already had paid a good faith deposit of millions of dollars toward that acquisition. According to court documents, one victim invested $210,000 relying on Mills’ claims that this victim would obtain shares in Motionloft in return and huge profits when the acquisition closed. Mills allegedly made these false representations just days before Motionloft’s stockholders terminated him as CEO on or about December 1, 2013. According to court documents, representatives of Cisco and Motionloft’s largest investor have both stated there was no possible acquisition of Motionloft by Cisco. Furthermore, court documents reflect that Motionloft’s largest investor has been contacted by several victims of Mills, and that Mills has claimed he is trying to pay back those victims.
Mills was arrested yesterday in San Francisco, and he made his initial appearance in federal court in San Francisco this morning. Mills is in custody, at least until his next scheduled court appearance, tomorrow, February 21, 2014, at 9:30 a.m. before the Honorable Maria-Elena James, United States Magistrate Court Judge in San Francisco.
The maximum statutory penalty for wire fraud, in violation of Title 18, United States Code, Section 1343, is 20 years in prison, a fine of $250,000, 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.
Authorities believe there are several additional victims of Mills’ alleged fraud. Anyone with information about Mills should contact the FBI in San Francisco at 415-553-7400.
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 a criminal complaint contains only allegations against an individual and, as with all defendants, Jonathan Edward (“Jon”) Mills must be presumed innocent unless and until proven guilty.