Motionloft founder and former CEO Jon Mills has pleaded guilty to two counts of wire fraud, according to the U.S. Attorney’s Office for the Northern District of California. In doing so, Mills has admitted to spending $765,000 of investors’ money while telling them the company was about to be acquired.
As we reported last year, Mills solicited funds from a number of friends and acquaintances, offering them an opportunity to take a stake in the company while he was CEO. At the time, he told many of them that Motionloft was in acquisition talks and they would benefit from the closing of the deal.
Meanwhile, Mills invited those same friends to party with him at Coachella and Las Vegas, where he racked up hundreds of thousands of dollars in expenses on penthouse suites, trips in private jets, and a private performance by R&B singer Miguel.
The whole thing came to an end when Mills was arrested earlier this year and charged with two counts of wire fraud and four counts of money laundering. He’s pled guilty to the wire fraud charges, each of which carry a maximum statutory penalty of 20 years in prison, a fine of $250,000, plus restitution.