Federal prosecutors accused the founder of what was once one of the most highly valued financial startups in the U.S. of criminal fraud and money laundering, the latest sign of a crackdown on the activities of privately held technology companies. Michael Liberty, the founder of Mozido LLC, was accused of misleading shareholders and diverting millions of dollars to pay for things like interior-decorating services and amounts he separately owed in a 2006 securities-fraud lawsuit, the U.S. Department of Justice said on Wednesday.

Source: Wall Street Journal February 28, 2019 01:52 UTC