An Oakland jury found former venture capitalist Mike Rothenberg guilty of defrauding investors and Silicon Valley Bank about how his firm spent its capital.
Rothenberg was charged on 21 counts, including wire fraud and money laundering, in the United States District Court of Northern California. News of the verdict was first reported by Axios.
Rothenberg founded his S.F.-based venture firm, Rothenberg Ventures, in 2012. It gained a reputation of hosting lavish events — paid for with investors' money — and touting investments in cutting-edge virtual reality. The firm was notably parodied in HBO's hit comedy "Silicon Valley."
His firm began unraveling in 2016 after media reports about misuse of funds and other internal problems.
Federal prosecutors alleged that between 2013 and 2016, Rothenberg engaged in fraudulent activities that netted him an estimated $18.8 million, partly by collecting excessive management fees and not investing some solicited funds as promised, while committing bank fraud to hide a shortfall in one of his funds. Instead of properly investing the money, Rothenberg used it for his own personal gain, the prosecutors said.
In 2018, Rothenberg settled separate charges with the U.S. Securities and Exchange Commission. Another criminal trial last year on two additional charges ended in a hung jury and mistrial. Rothenberg will be retried on those charges on a date to be determined.
The court scheduled Rothenberg's sentencing for March 1, 2024.
