On Glassdoor, one previous employee explained YouPlus as “a circus satisfies a nuthouse.” But YouPlus was even much more than that — in accordance to the Securities and Exchange Commission, it was an outright fraud.
On Monday, the SEC charged the Mountain Watch, California-primarily based technological know-how start-up and its chief executive officer with defrauding investors by building untrue and deceptive statements about the company’s finances and resources of earnings.
The SEC’s complaint alleges that from 2018 to 2019, Shaukat Shamim, the founder and CEO of YouPlus, a personal corporation that purported to have formulated a machine-mastering tool to review video clips on the net, elevated funds from investors whilst regularly misrepresenting the company’s economical issue.
According to the complaint, Shamim falsely advised investors that YouPlus acquired hundreds of thousands of bucks in annual earnings and experienced much more than 100 customers, such as Fortune 500 firms. When one investor