Adam Rogas, the former CEO and Co-Founder of NS8 Inc. was arrested this morning and charged by the United States Attorney for the Southern District of New York in a criminal complaint with one count securities fraud and one count wire fraud. In addition, the Securities and Exchange Commission filed a parallel emergency action seeking an asset freeze and charging Rogas with defrauding investors by falsely claiming millions of dollars in revenue.
The government investigation and an internal investigation into this conduct are ongoing. At this time, no one else has been charged and the company is cooperating fully with federal investigators. The NS8 Board of Directors has learned that much of the company’s revenue and customer information had been fabricated by Mr. Rogas. These events created significant cash flow issues for the company and required a significant downsizing impacting all of its employees. The remaining NS8 leadership and Board of Directors is working to determine financial options for the company and its stakeholders going forward.
The full statement from the US Attorney’s Office in the Southern District of New York: https://www.justice.gov/usao-sdny/pr/founder-and-ceo-cyberfraud-prevention-company-arrested-and-charged-securities-fraud
The full statement from the Securities and Exchange Commission: https://www.sec.gov/news/press-release/2020-213