Tanmaya Kabra, the 27-year-old founder of the Boston firm Launchbyte.io LLC, has been sentenced to 21 months in prison after pleading guilty to operating a Ponzi-like scheme related to supposed investments in startups.
Kabra has also been ordered to pay $1.8 million in restitution to his victims as well as a $15,000 fine. In addition to the prison term, he was sentenced to one year of supervised release. He had pled guilty in April to four counts of wire fraud.
Pitching himself as a serial entrepreneur, venture capitalist and startup mentor, Kabra lured investors to give money under the premise that it would be used to support startups, according to prosecutors. Instead, Kabra allegedly used the money to pay back debts to prior investors and to fund lavish personal expenses, including paying off credit card bills of more than $80,000 and to buy a boat in Peabody worth more than $200,000.
He conducted his business through Launchbyte and affiliated entities, prosecutors said. He has admitted to taking advantage of more than 20 people, they alleged.
U.S. District Judge Denise Casper handed down the sentence on Wednesday.
