The former CEO of a Northern Virginia tech startup was sentenced to more than eight years behind bars Friday for a fraud scheme that lost investors millions of dollars.
Daniel Boice, 41, of Alexandria, was sentenced after he pleaded guilty in December to stock fraud and wire fraud.
Boice raised more than $18 million from more than 250 individual and corporate investors for Trustify, an Arlington-based company that he promoted as the “Uber” of private investigator services, according to court documents.
Boice admitted using at least $3.7 million of the money for personal expenses, including private jet travel and furnishing a seaside vacation home in New Jersey.
Boice used some of the money for a down payment on a $1.6 million Alexandria house. He also paid for a chauffeur, a house manager and spent over $100,000 for premium seats at sporting events.
The U.S. Department of Justice said Boice created fake financial statements and fabricated business relationships to tout the growth of Trustify.
The company was placed in corporate receivership by the Delaware Chancery Court back in 2019.
According to the DOJ, Trustify’s collapse led to over $18 million in losses to investors and over $250,000 in unpaid wages and associated costs for Trustify’s employees.
Boice was ordered to pay $18,131,742.21 in restitution and forfeit $3.7 million.
The Securities and Exchange Commission has also filed a civil complaint against Boice and his wife at the time, Jennifer Mellon, who served as a vice president of Trustify.
The Associated Press contributed to this report.