Topics
previous
AI
Amazon
Image Credits:Rothenberg Ventures
Apps
Biotech & Health
mood
Image Credits:Rothenberg Ventures
Cloud Computing
Commerce
Crypto
Enterprise
EVs
Fintech
Fundraising
Gadgets
Gaming
Government & Policy
Hardware
Layoffs
Media & Entertainment
Meta
Microsoft
privateness
Robotics
Security
societal
Space
Startups
TikTok
fare
Venture
More from TechCrunch
event
Startup Battlefield
StrictlyVC
Podcasts
TV
Partner Content
TechCrunch Brand Studio
Crunchboard
touch Us
Mike Rothenberg, a former VC known for hosting lavish parties, was convicted today on 21 counts for defrauding investors
This class will be think back for a lot of thing . Among them could be the growing number of whizz in the inauguration world who were later convict for defrauding investors .
Roughly six months after Theranos founder Elizabeth Holmesheaded to jailfor four numeration of wire fraud , and just two hebdomad after Sam Bankman - Fried wasfound guiltyon seven counts of fraudulence and cabal for his role in the collapse of his crypto rally , another former in high spirits - flier in the startup world , Mike Rothenberg , was todayconvictedon 21 counts , including depository financial institution fraud , false statement , four counts of money laundering and 15 counts of wire fraud .
The finding of fact , give birth by a panel in Northern California , bookends a 10 - year journey for Rothenberg , who explode onto the Bay Area scene in 2013 at old age 27 with a $ 5 million monetary fund and enough charm to persuade TechCrunch that his one - man house was special enough tomerit coverage .
The Austin native was a compelling subject . A self - described former mathematics Olympian who see Stanford before getting an MBA from Harvard Business School , Rothenberg reportedly started both a tutoring business and a real estate monetary fund while still an undergrad . He also logged sentence at Bain & Co. , seemingly setting himself up for a traditional career in finance or venture capital . rather of trodding that well - worn path — he was reportedly volunteer at least one role at a hedging investment trust — Rothenberg clear extolment for striking out on his own or else , and he angle to a great extent into a narrative about himself as a inexorable floozy who could relate to the founder he want to fund .
Rothenberg also found increasingly inventive way to appeal far-flung care to his comparatively small shop , many of them centered on organise expensiveparties for beginner . Indeed , one of these gatherings — an “ annual ” case held two years in a wrangle at the park where the San Francisco Giants roleplay — inspired an instalment of the HBO show “ Silicon Valley . ”
It also raised motion , include in a chronicle by Bloomberg that nickname him “ the Valley ’s company animal ” while also follow that it was n’t “ entirely clear ” how Rothenberg was funding it all . ( TechCrunch was latertold by sourcesthat after the Bloomberg piece of music was release , Rothenberg sent two employee to SFO , purchasing them air hose tickets so they could grease one’s palms up its newsstand copy and keep them out of view . )
He never recoup . In 2018 , he wasformerly chargedby the SEC for overcharging investors to fund personal projects ; Rothenbergsettledin 2019 with the authority , which soughttens of millions of dollarsin disgorgement punishment ( these were laterbacked upby a Union court ruling ) .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
While still facing that mountain of civil penalty , Rothenberg was charged with fraud six months later by the DOJ , which would later extend to today ’s termination .
What comes next could be worse . While Rothenberg wo n’t be doom until March 1 of next year , in its 2019 pressing release about its action against Rothenberg , the DOJ note that each of its wirefraud charges stockpile “ maximal statutory punishment of up to 20 year in prison , not more than three years monitor release , and a $ 250,000 amercement . ” It add that “ two bank fraud charges ” and “ two false statement to a bank charges each convey a maximum of 30 years in prison , not more than five year manage vent , and a $ 1,000,000 fine . ” The money laundering charge , it keep , “ conduct a penalty of internment of not more than ten years , not more than three years of supervised release , and a mulct of not more than twice the amount of the criminally derived prop involve in the transaction at issue . ”
Pictured above : A picture of Rothenberg Ventures during its heyday , with Rothenberg at center .
