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Josh Verne Sentenced to 111 Months in Federal Prison for Investor Fraud

Restitution remains unresolved with losses estimated between $12 million and $24 million.

Overview

  • Verne pleaded guilty in 2025 to securities fraud, wire fraud and aggravated identity theft after using forged documents and false net‑worth claims to secure funding.
  • The SEC said he raised about $31 million and misspent roughly half, including more than $9 million on personal expenses and about $5 million on “Ponzi‑like” payments to early investors.
  • Prosecutors said he wooed prominent backers including David Adelman, Michael Rubin and Bart Blatstein, at times presenting forged Goldman Sachs materials to bolster his pitch.
  • Investor funds went to private jet trips, country club dues, home renovations and his daughters’ bat mitzvahs instead of company operations, according to court filings.
  • The sentence includes three years of supervised release, and the judge referenced threatening texts to a cooperating former employee that prosecutors characterized as witness intimidation.