Shaukat Shamim was sentenced to 30 months in federal prison for defrauding investors into investing in the technology startup he founded and led, YouPlus, the Justice Department said Tuesday.
Shamim admitted to making false representations to investors about YouPlus’s product, sales, and customer adoption, including falsely claiming the company had developed AI software when it was actually using manual labor, the DOJ said. He also provided fabricated financial documents showing inflated revenue and customer numbers to secure additional funding.
From August 2018 through October 2019, Shamim obtained about $6.4 million from investors through these fraudulent means.
Shamim pleaded guilty ...
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