NEW YORK (1010 WINS) — The co-founder of a Las Vegas cyber fraud prevention company was sentenced in a Manhattan federal court on Thursday for defrauding investors to the tune of about $123 million, according to the Department of Justice.
Adam Rogas, the co-founder, former CEO and former CFO of NS8, used fraudulent financial statements to raise $123 Million from investors.
Between January 2019 and the Spring of 2020, Rogas distributed misleading financial statements and altered bank statements to show tens of millions of dollars in customer revenue and bank balances that did not exist.
Between about 40% to 95% of the assets reported on NS8's balance sheet during this time were fake.
Rogas received a tender offer — an opportunity to buy stock — after his fraud scheme that netted him $17.5 million with the artificially inflated value.
"Adam Rogas took the 'fake-it-till-you-make-it' saying to a criminal extreme," U.S. Attorney Damian Williams said. "While claiming to be in the fraud prevention business, Rogas himself faked nearly all of his company's customers, revenue, and assets. In doing so, he defrauded investors out of over $100 million."
Rogas pleaded guilty to securities fraud on March 16.
Judge John Cronan characterized Rogas' fraud as "brazen, calculated, and long-running" and sentenced him to five years in prison.
