SAN FRANCISCO - Mike Rothenberg, the once-prominent founder of Rothenberg Ventures Management Company LLC, has been convicted for defrauding investors of $18 million. The funds were misappropriated for personal use, including financing a racing team. Rothenberg's firm was known for its high-profile investments in companies such as SpaceX and Robinhood (NASDAQ:HOOD).
The conviction follows a series of legal challenges for Rothenberg, who settled with the Securities and Exchange Commission (SEC) in January 2020 for $31 million without admitting any wrongdoing. Additionally, he faced a securities industry ban for five years. Despite these setbacks, his legal troubles continued when a second trial was conducted after an initial trial resulted in a hung jury. This time, he was found guilty on all counts.
Rothenberg's fraudulent activities came into the public eye after a Bloomberg News profile highlighted his misconduct. His background as a Harvard Business School graduate aided him in raising over $50 million from investors. During his tenure at the helm of Rothenberg Ventures, he was known for hosting lavish events that catered to tech elites, including renting out the San Francisco Giants' stadium and flying guests in hot-air balloons over Napa Valley.
In addition to investor fraud, Rothenberg also deceived Silicon Valley Bank with false information on loan applications. As he awaits sentencing in March 2024, he faces the possibility of severe jail time and fines.
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