A press release from the United States Attorney’s Office Northern District of California said, “ Michael Brent Rothenberg, a former San Francisco venture capitalist once described in Bloomberg as “Silicon Valley’s Party Animal,” was convicted today of wire fraud, money laundering, bank fraud, and making false statements to a bank by a federal jury, announced Criminal Division Chief Thomas C. Colthurst, Federal Bureau of Investigation Special Agent in Charge Robert Tripp, and Acting Special Agent in Charge of Internal Revenue Service-Criminal Investigation Mark Silva.
“The guilty verdicts followed a seven-week jury trial before the Hon. Jon S. Tigar, U.S. District Judge. All told, the evidence introduced at trial established that Rothenberg’s schemes resulted in approximately $18.8 million in missing money.”
The jury determined that, in connection with many investments made by investors in two venture capital funds he managed in 2015 and 2016, Rothenberg, 39, had engaged in wire fraud. Furthermore, the jury determined that Rothenberg had committed wire fraud in February 2016 in relation to a $2 million investment he had made in Bend Reality LLC, a business he owned that operated under the name River Studios.
He had also committed money laundering by moving a sizable portion of those proceeds through a number of different bank accounts. In the end, the jury determined that the defendant was guilty of bank fraud and lying to a bank on a credit line that Rothenberg had taken out from Silicon Valley Bank for his venture capital management company towards the end of 2015.
The records also revealed that Rothenberg established River Studios in 2015 or thereabouts with the intention of creating content for VR headsets. According to the evidence cited in the trial, Rothenberg informed his staff, funders, and the investor in River Studios during 2015 and 2016 that he had “self-funded” the company and had not used venture capital funds to support its operations.
On the other hand, the evidence demonstrated that Rothenberg had embezzled a substantial sum of money from venture capital funds to fund River Studios’ operations during that time. The evidence also demonstrated that, in addition to using venture capital funds to finance River Studios’ operations, Rothenberg frequently withheld excess fees from the venture capital funds he managed in 2015 and 2016 and that investor funds were frequently utilized for purposes other than those disclosed to investors, such as financing operating costs for RVMC and securing a line of credit that RVMC had obtained from Silicon Valley Bank in late 2015.
He was charged with bank fraud, in violation of 18 U.S.C. § 1344; making false statements to a bank, in violation of 18 U.S.C. § 1014; wire fraud, in violation of 18 U.S.C. § 1343; and money laundering, in violation of 18 U.S.C. § 1957. Rothenberg’s sentencing hearing for March 1, 2024. The maximum statutory penalty for each count in violation of 18 U.S.C. § 1344 and 18 U.S.C. § 1014 is 30 years of imprisonment and a fine of $1,000,000. The maximum penalty for each count in violation of 18 U.S.C. § 1343 is 20 years of imprisonment and a fine of $250,000. The maximum penalty for each count in violation of 18 U.S.C. § 1957 is 10 years and a fine of $250,000. However, any sentence will 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.Source:United States Department of Justice
Celebrity WEB Update— Premier Jewelry designer and manufacturer fashion house ParisJewelry.com has started manufacturing a new custom line of celebrity jewelry designs with 30% Off and Free Shipping. Replenish Your Body- Refilter Your Health with OrganicGreek.com Vitamin Bottles, Vitamins and Herbs. Become a WebFans Creator and Influencer. Check the New Special XMicro Razors for Men & Women, 1 Razor, 7 Blade Refills with German Stainless Steel, Lubricated with Vitamin E for Smooth Shave, Shields Against Irritation, Version X