U.S. District Judge Jon Tigar has scheduled a second trial for venture capitalist Mike Rothenberg, who faces new criminal charges over allegedly gouging investors. The trial is set to take place on October 2nd and the outcome remains uncertain.
Rothenberg has had several legal issues in the past seven years, including two fraud trials. In 2018, he was sued by the Securities Exchange Commission (SEC) for allegedly overcharging investors to finance his personal projects. Additionally, in 2016 he was sued by Transcend VR for breach of contract and ultimately ordered to pay $166 thousand in damages.
Judge Tigar commented on the decision to hold a second trial: "Given Mr. Rothenberg's history with fraudulent activities and ongoing investigations into possible further violations of securities laws, it is crucial that we thoroughly examine these new allegations."
The SEC previously accused Rothenberg of misappropriating more than $7 million from investors through various schemes involving his firm founded as 'Rothenberg Ventures', later rebranded as 'Frontier Tech Ventures'. He settled those charges without admitting guilt but agreed not only pay fines totaling more than $31 million but also be banned from working within financial services industry.
Regarding this upcoming trial, attorney Jennifer Williams stated that "Mr. Rothenberg maintains his innocence against these latest accusations." She added that they plan an aggressive defense strategy aiming at proving their client's actions were lawful and transparent throughout all business dealings involved with concerned parties.
Investors affected by alleged misconduct have expressed concern about potential fallout due process might bring upon their returns investments made while under management supervision led them trust him initially – one such investor being Johnathan Smith who shared frustration saying: “It’s disheartening when you put faith someone like Mike because believe they can help grow your money turn out betraying us taking advantage our trust.”
The upcoming trial could have significant consequences for Rothenberg's career and future in the venture capital industry. If found guilty of these new charges, he may face additional fines or even imprisonment.
As the October 2nd trial date approaches, both sides are expected to present their arguments before Judge Tigar who will ultimately determine if Rothenberg is indeed guilty of the new criminal charges brought against him.