Israeli Entrepreneur Admits to $27 Million Investor Fraud
Israeli entrepreneur Eilitz Raz has pleaded guilty to defrauding investors out of approximately $27 million by presenting false information about her company's clients and revenue. The announcement was made by the Manhattan District Attorney's office. Raz faces a maximum sentence of 20 years in prison.
According to prosecutors, Raz's company, Joonko, marketed an AI-powered product designed to help employers recruit candidates from diverse backgrounds. To secure about $27 million in funding during 2021 and 2022, Raz allegedly made false claims regarding key aspects of Joonko's business operations.
Specifically, Raz provided fabricated data concerning the number and identity of the company's clients. She falsely claimed that major global corporations, including a credit card company, a sportswear brand, an online travel company, and a luxury fashion brand, were clients. In reality, these entities had never worked with Joonko.
"By pleading guilty, Eilitz Raz has acknowledged the seriousness of her actions and the harm caused to investors," stated FBI Assistant Director-in-Charge James C. Dent Jr. "The victims deserve justice, and the FBI will continue to work to ensure they receive it."
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