Forged documents and false information: The Israeli's massive fraud in the US

Ilit Raz, founder and CEO of the AI company Joonko, pleaded guilty to securities fraud. According to the indictment, she presented large companies to investors as clients of the startup, while there was never a business relationship between them and the company. Raz sent forged documents, including bank statements and fictitious purchase orders with forged signatures. The company raised about $27 million in two rounds, collapsed, and left investors with heavy losses.

Ilit Raz, the Israeli entrepreneur who headed the AI company Joonko, pleaded guilty to securities fraud in the United States. According to the indictment, Raz misrepresented to investors that several of the world's largest companies were clients of the startup, including a credit card company, a sportswear brand, an online travel company, and a luxury fashion brand. In reality, these companies were never clients of Joonko, and Raz was aware of this. The false representations helped the company raise about $10 million in a Series A round in June 2021 and about $17 million in a Series B round a year later, totaling about $27 million. The affair escalated in 2023 when an investor suspected the company's performance and demanded bank statements. Raz sent him a document showing an average balance of over $5 million, but according to the prosecution, this was a forged document and the actual balance was millions lower. Days later, Raz sent the investor documents presented as purchase orders from clients, but many were fictitious and included forged signatures. The company collapsed, and investors were left with losses of millions of dollars. About two months ago, a bankruptcy court in Delaware approved a $500,000 settlement between the company and Raz.