The Federal Bureau of Investigation (FBI) has arrested Jon Mills, Motionloft's founder and former Chief Executive Officer (CEO). The FBI has confirmed the arrest, according to TechCrunch.
Last December, TechCrunch published a story about several friends writing checks to invest in the real-world analytics startup. Later, sources said Mills had bragged that the company has been acquired. But that claim turned out to be false. Still, Mills went on several extravagant trips and a weekend party in Vegas. However, it was later discovered that Motionloft was having a difficult time paying its bills, the report detailed.
In November, several Motionloft investors began asking for their part in the supposed acquisition. After speaking with Mark Cuban, a board member and investor in the startup, they learned that no acquisition deal took place, the report explained.
A local FBI representative confirmed that they had arrested Mills and that he will appear in the District Court on Friday morning. The charges against him are not yet confirmed, but the supporting documents are expected to be brought to the hearing, TechCrunch reported.
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