NS8 CEO Adam Rogas pocketed $17.5 million from investors after allegedly showing them fabricated bank statements.
Adam Rogas, former CEO of NS8, was arrested in Las Vegas on fraud charges. He is expected to appear in court Friday.Until that hot Las Vegas afternoon on September 1, he was the only person at his company NS8 with access to one of the company’s two bank accounts where all the customer revenue was sent. But, in the preceding weeks, executives at the cyber fraud software startup had begun asking questions about how much money it actually had.
For those left wondering what happened at one of Las Vegas’ hottest tech startups — and one of its most bizarre alleged frauds — some questions were answered on Thursday when Rogas wasin Las Vegas. The 43-year-old was charged with multiple counts of fraud by the Justice Department and Securities and Exchange Commission, alleging that he fabricated bank statements and misled investors for years. He is facing penalties up to 20 years in prison, and is expected to appear in court Friday.
Neither AXA or Lightspeed would respond to questions about whether they knew that NS8 was under investigation at the time of their recent investment, nor would they discuss what due diligence was done. Sorenson Capital did not respond to requests for comment. He was seen as a talented coder at NS8, and until recently, was well-liked. “I always enjoyed working with him,” says one senior employee who reported to Rogas on a weekly basis. “If he was a super smart guy but not nice to a person, or a strange guy, I’d be like ‘yeah, makes sense.’” The employee adds: “It feels like the perfect con.” $7.5 million in a seed funding round led by Arbor Ventures.
The timing couldn’t have been worse. Rogas was in talks to raise another major funding round led by Lightspeed Venture Partners — a deal in which he could sell millions of dollars worth of shares back to investors.
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