Former Aerospace Principals Charged with Fraud, Tax Evasion

Five former principals of aerospace startup company Theia Group—Erlend Olson, John Gallagher, Stephen Buscher, Joseph Fargnoli, and Jamil Swati—were charged with defrauding investors and lenders out of $250 million, and Olson was further charged with evading more than $3.9 million in personal federal income taxes, the Justice Department announced Tuesday.

According to the DOJ, from 2015 through 2021, the principals made false statements about revenue, provided fake financial statements, and misrepresented Theia’s technical capabilities to induce approximately $250 million in loans and investments. The company had planned to launch 112 satellites starting in 2022 at a cost of $10 ...