Startup Founder Accused of Defrauding Investor to Save Own Company
Translated & summarized from Bizportal by baba
High-tech entrepreneur Adi Hod is accused of defrauding Singaporean company Capital Sustainability PTE out of $2 million to save his own startup, Velotix. The lawsuit claims Hod diverted the funds to a fraudulent company account instead of the intended investment venture. Capital Sustainability alleges Hod promised to repay the money but failed to do so. The company also claims Hod was simultaneously injecting personal funds into Velotix to prevent its collapse, suggesting the fraud was timed to address his financial crisis.
The story in 5 lines · by baba
- Adi Hod is accused of defrauding Capital Sustainability PTE out of $2 million to save his startup Velotix.
- The lawsuit claims Hod diverted the funds to a fraudulent company account he controlled.
- Capital Sustainability alleges Hod provided false information about the investment venture and bank account.
- Hod allegedly promised to repay the defrauded funds with interest but failed to do so.
- The alleged fraud occurred while Hod was reportedly injecting personal funds into Velotix to prevent its collapse.
High-tech entrepreneur Dr. Adi Hod allegedly defrauded a Singaporean company out of $2 million to save his own cyber startup, Velotix. Capital Sustainability PTE filed a lawsuit for NIS 6.2 million against Hod, Velotix, and Scopus MGNT in the Tel Aviv District Court, claiming Hod diverted the funds. The lawsuit states that in late 2025, Capital Sustainability was approached by a group of businessmen, including Hod, who proposed establishing a US-Israeli investment fund for security startups. The proposed structure involved a Delaware limited partnership, Scopus Ventures Fund III, to receive investor funds, with Scopus Ventures GP III as the limited partner. This entity was to be equally owned by Scopus USA, led by Bahram Nour-Omid, and the Israeli group 8-Vision, headed by Hod and attorney Keren Tsachi.
Capital Sustainability signed an agreement in April of this year. According to the lawsuit, shortly before transferring funds, Hod provided Capital Sustainability with "false and misleading information" about the corporation and bank account designated for the investment. Hod and Scopus allegedly sent multiple "capital call notices" specifying the corporation and bank account details. Capital Sustainability claims it transferred $2 million in mid-April based on this information.
It later emerged, the company alleges, that Hod had established a foreign company named 8 Vision Ventures Series, registered in Delaware, with a deliberately similar name to the venture's entities. This company, the lawsuit claims, had no connection to the actual venture, the SVF III fund, Nour-Omid, or Tsachi. Hod, through himself and Scopus Israel, allegedly opened a bank account at JP Morgan Chase in New York for this fraudulent company and provided its details to Capital Sustainability, falsely representing that the funds would go to the venture. Capital Sustainability asserts this was a sophisticated scam to funnel money into an account unrelated to their intended investment.
Capital Sustainability learned in July that the promised fund was not operational and had not received its money. They demanded the return of their investment from Hod, who allegedly promised to repay it with interest, confirming personal responsibility. However, the company claims these were "empty words from someone who committed fraud and was caught," and the money was not returned.
The lawsuit further alleges that at the time of the alleged fraud in April, Hod was facing a crisis with Velotix, whose 13 employees had sought insolvency proceedings in February due to millions in debt. The case was closed in May after Hod presented himself as the company's "savior," allegedly injecting millions of shekels from his "private account" to stabilize and rescue Velotix. Capital Sustainability contends that Hod defrauded them of $2 million in April while simultaneously injecting "personal" funds into Velotix to prevent its collapse.
Additionally, Capital Sustainability states that Tsachi, a former police prosecutor, provided the police with information regarding Hod's alleged fraudulent activities and resigned from her positions at Scopus Israel last month. The lawsuit was filed by attorneys Eyal Nachshon, Hadar Gonen, and Reut Elankari, and no defense statements have yet been filed.