Another Seattle Startup Gets Slammed with Fraud Charges
You'd never expect the Seattle startup community to be scandal plagued, yet it's just been hit with its third embarrassment in just four months. First, executives at the CRM company Entellium were found in October to have cooked their books to attract venture capital (the company has since shut down). In December, Bellevue-based Count Me In, whose online registration tools are used by thousands of nonprofits and youth athletic programs, admitted that it owes millions of dollars to more than 200 sports programs across the country. Now, Techflash is reporting that the chief executive of retail kiosk startup MOD Systems, which raised $35 million in funding from NCR and Toshiba last summer, is being accused of “massive fraud,” by one of its own investors.
