New York:  According to the Justice department, an Indian-origin tech entrepreneur has been sentenced for fraud and another has been arrested in a separate case.

The acting Federal prosecutors in San Francisco announced on Wednesday. Manish Lachwani, the co-founder of Head spin, was arrested on Tuesday and charged with securities fraud, Stephanie Hinds.
Prosecutors alleged that he exaggerated the company’s revenues while it was seeking investments in the startup when he served as its CEO.

It caused the company’s valuation to jump to $1.1 billion but it dropped to $300 million when the overstatement of the revenue was discovered, prosecutors said in their complaint. Before the discrepancy was found, investors had already made investments in the company, according to the prosecutors.

Head spin bills itself on its website as “the world’s first Digital Experience AI (artificial intelligence) Platform.” It said the company offers “global testing, performance monitoring, and QoE (quality of experience) management platform to help organisations assure optimal digital experiences across mobile and web delivery channels.)

According to his LinkedIn bio-data, he had worked in senior positions with Microsoft and Amazon, but he had left the companies several years ago. He described himself as an “investment literacy coach” on his website and his Twitter feed provided a steady stream of business news till Tuesday night.