Daniel Boice, CEO and founder of Trustify, a company Boice claimed was the “Uber” of private investigator services, was sentenced to more than eight years in prison for defrauding Trustify investors to the tune of $18 million. Beginning in 2015, Boice overstated Trustify’s financial performance through fraudulent financial statements and investor presentations. He diverted millions of investor proceeds to his own benefit, including million dollar down payments on vacation homes in Virginia and New Jersey.
According to a Department of Justice new release:
“Boice raised more than $18 million from over 250 individual and corporate investors by, among other things, falsely overstating Trustify’s financial performance. To secure investor capital, Boice inflated Trustify’s monthly and annual revenues in detailed fraudulent financial statements and investor presentations, and he fabricated large corporate business relationships to support his false statements about Trustify’s growth. In addition, Boice created a fake email account to pose as a prominent potential investor, and he then used the account to send a fraudulent email to successfully convince an investment firm to invest nearly $2 million in Trustify.
Boice also made false statements to investors about the amount of investor funds that he would personally receive, while diverting a substantial amount of the investor money to his own benefit. Boice personally derived at least $3.7 million in proceeds from the fraud, including several million dollars in transfers from Trustify to bank accounts under his control and in personal charges on credit cards paid with Trustify funds. Boice diverted Trustify funds, for example, to secure the down payment on a $1.6 million house in Alexandria and a $1 million beach house in New Jersey, as well as to pay for a chauffeur, house manager, and various luxury items. Boice also used Trustify funds to pay for family vacations, private jet trips, and over $100,000 for premium seats at sporting events.”
In 2019, Trustify was placed into corporate receivership by the Delaware Chancery Court, leading to more than $18 million in investor losses.
If you or someone you know invested in Trustify, one of our investment fraud lawyers may be able to help. Contact us today.