Startup founder sentenced to 18 months in prison for fraud
Another start-up founder will go to prison for overstating his company's performance in the eyes of investors.Manish Lachwani, who last year pleaded guilty to three counts of defrauding investors in his software start-up, HeadSpin, was sentenced Friday to a year and a half in prison. He will also pay a fine of $1 million.Prosecutors said Mr. Lachwani, 48, deceived investors by inflating HeadSpin's revenue by nearly fourfold, making false claims about his customers and creating false invoices to cover it all up. His misrepresentations allowed him to raise $117 million in funding from major investment firms, valuing his start-up at $1.1 billion.When HeadSpin board members discovered the behavior in 2020, they pushed Mr. Lachwani to resign and cut the company's valuation by two-...