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U.S. authorities are accusing the founder of a cyberfraud prevention company of carrying out an old-fashioned securities fraud of his own.

The U.S. attorney’s office for the Southern District of New York and the U.S. Securities and Exchange Commission (SEC) both announced charges today against Adam Rogas, co-founder and former CEO of a Las Vegas–based cyberfraud prevention company, NS8, Inc.

The authorities allege that Rogas used fraudulent financials to raise US$123 million from investors, and that he personally pocketed US$17.5 million.

Specifically, they allege that he falsified the company’s bank statements to show tens of millions of dollars in customer revenue and bank balances that did not exist, and that he then used the misleading financials to raise millions from investors in the fall of 2019 and the spring of 2020.

He was charged in Manhattan federal court with securities fraud, fraud in the offer and sale of securities, and wire fraud.

In a parallel civil proceeding, the SEC also charged him with violating federal securities laws.

None of the allegations have been proven.

“As alleged, Adam Rogas was the proverbial fox guarding the henhouse,” said Audrey Strauss, acting U.S. attorney for the Southern District of New York.

“While raising over US$100 million from investors for his fraud prevention company, Rogas himself allegedly was engaging in a brazen fraud,” she said.