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Fintech

Mozaic Payments CEO Charged with $20 Million Fraudulent Investment Scheme

Summary generated with AI, editor-reviewed
Heartspace News Desk
Source: Reuters
TL;DR

Marcus Cobb, CEO of Mozaic Payments, faces charges of conspiracy to commit wire fraud after allegedly defrauding a private equity firm of $20 million by misrepresenting his company's application. Cobb and a co-founder reportedly submitted fabricated documents and testimonials to secure the investment, despite the application being non-functional and generating no revenue, leading to a $20 million investment in September 2023.

Key takeaways

  • Marcus Cobb, CEO of Mozaic Payments Inc
  • , has been indicted on charges of conspiracy to commit wire fraud, accused of defrauding a private equity firm of $20 million
  • Cobb and a co-founder allegedly misrepresented the capabilities of Mozaic's revenue-sharing application for the music industry to secure investment
Marcus Cobb, CEO of Mozaic Payments Inc., has been indicted on charges of conspiracy to commit wire fraud, accused of defrauding a private equity firm of $20 million. Cobb and a co-founder allegedly misrepresented the capabilities of Mozaic's revenue-sharing application for the music industry to secure investment. The indictment alleges the application was non-functional and generated no revenue. To obtain funding, Cobb and his co-founder purportedly submitted falsified financial documents and fabricated customer testimonials. As a result, a Boston-based private equity firm invested $20 million in Mozaic Payments in September 2023, receiving equity shares and board representation. While the indictment does not explicitly name the firm, Mozaic Payments previously announced a $20 million investment from Volition Capital.

Related Topics

fraudinvestmentprivate equitytechnologymusic industryMozaic Paymentswire fraud

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