SAN DIEGO - Four people are arrested in a big fraud scheme involving a San Diego tech company.
The four now in custody are facing fraud charges related to the $150 Million acquisition of a Silicon Valley based startup named Abreezio. The startup was marketed to the un-named San Diego company back in 2015 with claims that its new microchip technology was created by a Canadian grad student.
What was not disclosed, though, was the grad student was the sister of the San Diego company's head of research and development and that he had significant involvement with the startup, including filing the patents for new microchip technology. The sister allegedly changed her name to avoid any connection with her brother.
Prosecutors say the defendants laundered the money from the sale of the startup through interest-free loans and foreign real estate purchases.