The former CEO and founder of a technology company was sentenced Friday to over eight years in prison for playing a role in a fraud scheme that solicited millions of dollars of losses to investors.
Daniel Boice, 41, of Alexandria, Virginia, pleaded guilty to one count of securities fraud and one count of wire fraud in December 2020.
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Boice fraudulently solicited investments in the Arlington-based company, Trustify, which Boice promoted as being the “Uber” of investigator services, court documents alleged.
By allegedly falsely stating the company’s financial performance, Boice raised over $18 million from more than 250 individual and corporate investors.
Boice allegedly inflated Trustify’s monthly and annual revenues and lied about having large corporate business relationships, according to the Justice Department.
He created a fake email account to pose as a prominent potential investor, using the email to send a fake email to an investment firm, which resulted in the solicitation of a $2 million investment into Trustify, the department said.
Boice personally derived at least $3.7 million in proceeds from the scheme, diverting company funds to place a down payment on a $1.6 million house in Alexandria and a $1 million beach house in New Jersey, and he also used the money to pay for a chauffeur, a house manager, luxury items, vacations, private jet trips, and premium seats at sporting events, according to the allegations against him.
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In 2019, Trustify was placed into corporate receivership by the Delaware Chancery Court. The collapse of the company led to over $18 million in losses to those who invested and more than $250,000 in unpaid wages and costs for Trustify’s employees.
In addition to his prison sentence, Boice must forfeit the $3.7 million he took for himself, as well as pay back the $18 million in losses through restitution fees.
