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Federal prosecutors have charged another Forbes 30 Under 30 alum with fraud | TechCrunch

Nov 20, 2024 - techcrunch.com
Joanna Smith-Griffin, founder of AI startup AllHere Education, has been indicted by the FBI for allegedly defrauding investors out of nearly $10 million through securities fraud, wire fraud, and aggravated identity theft. The indictment alleges that she misrepresented her company's revenue, customer base, and cash from November 2020 to June 2024. The company is currently in Chapter 7 bankruptcy and Smith-Griffin could face a maximum sentence of 20 years each for securities and wire fraud, and a mandatory two-year sentence for aggravated identity theft.

The Forbes 30 Under 30 list has been associated with a number of fraud cases in recent years, leading to it being referred to as the "Forbes-to-Fraud" pipeline. Other notable figures who have been indicted on fraud charges include FTX founder Sam Bankman-Fried, Alameda Research co-CEO Caroline Ellison, fintech Frank founder Charlie Javice, and Martin Shkreli, also known as "Pharma bro".

Key takeaways:

  • The FBI unsealed an indictment against Joanna Smith-Griffin, founder of AI startup AllHere Education, accusing her of securities fraud, wire fraud, and aggravated identity theft.
  • Smith-Griffin allegedly defrauded investors out of nearly $10 million by misrepresenting her company's revenue, customer base, and cash from November 2020 to June 2024.
  • AllHere Education is currently in Chapter 7 bankruptcy, and Smith-Griffin could face up to 20 years in prison for each count of securities and wire fraud, and a mandatory two years for aggravated identity theft.
  • The Forbes 30 Under 30 list has seen several honorees, including FTX founder Sam Bankman-Fried, Alameda Research co-CEO Caroline Ellison, fintech Frank founder Charlie Javice, and Martin Shkreli, indicted on fraud charges.
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