Former Motionloft Chief Executive Officer (CEO) Jonathan Mills was arrested in February in connection with fraud allegations. On Thursday, Mills was finally indicted in San Francisco and is now facing additional charges, according to The Wall Street Journal (WSJ).
Mills is now facing 30 years' jail time, but a relative arranged his release to a halfway house before the trial, the report added.
Mills was indicted by a grand jury for wire fraud and money laundering. He is accused of cheating his friends and acquaintances out of more than $500,000 that they invested in the startup. He convinced the victims to invest in Motionloft with promises of big returns.
The indictment explained what happened to the money: "Mills spent most of the money to fund a lavish lifestyle including private jet trips to luxurious vacation destinations, expensive entertainment, and lulling payments to other victims."
Motionloft is an analytics startup based in San Francisco. The firm uses motion-detecting sensors to count and analyze the vehicles and people that pass in front of stores. The company's tool analyzes the gathered data to determine shopping trends. Mills was booted from Motionloft in December 2013, WSJ reported.
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