Startup founder pleads guilty to ripping off VC investors with cooked books and phony customer claims

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Crystal Huang admitted to lying about the finances of her startup, ProSky, to entice venture firms focused on diverse investing.

A startup founder has pleaded guilty to cooking the books of her human resources software firm and lying about how many customers it had in order to attract over $5 million from venture capitalists focused on diverse investing.

A startup founder has pleaded guilty to cooking the books of her human resources software firm and lying about how many customers it had in order to attract over $5 million from venture capitalists focused on diverse investing. “Who would have thought that a boring industry like human resources could be disrupted and turned into an exciting, fun, and much-needed industry,” Huang wrote in an online essay in 2018. “That has only been possible because of technology — especially software systems.”

 

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