Three men in New Jersey were arrested yesterday for allegedly swindling nearly $7 million from an investor by claiming that they had “special access” to shares of Facebook prior to it going public last May.
Federal prosecutors arrested Aaron Muschel, 63, of Brooklyn, and Alex Schleider, 47 and Eliyahu Weinstein, 37, of Lakewood, N.J. and charged them with wire fraud conspiracy. Bloomberg reports that they offered a New Zealand investor “blocks of Facebook shares” even though the men had no access to them. They preyed off the near deafening buzz, that seemed to promise Great Gatsby-like riches, to those who cash in on the site’s IPO. Read More
JackThreads Gets an iPads App Purveyor of men’s clothes and accessories JackThreads is attempting to seal up its lucrative mobile market. The company, described as ‘urbo-hipster’ by TechCrunch, is currently generating about 40 percent of revenue via its iPhone app. CEO Ben Lerer revealed how he was excited to “Roll out this beast to our guys.” Not sure if “beast” correctly describes a collection of blazers and jackets, but we wish them luck. Read More
It’s helped celebs like Zach Braff and Kristen Bell pull together the cash for their passion projects, but it looks like the Kickstarter gravy train has finally dumped a famous person right on her ass. Childhood sassiness role model and erstwhile teen witch Melissa Joan Hart’s project has, sadly, failed abysmally.
Ms. Hart wanted to raise $2 million for Darci’s Walk of Shame, about a school teacher who has sex with a waiter while in Thailand for her sister’s wedding (really). She appealed to her fans: “By playing Darci, I will get the chance to once again be in a fun and hilarious Rom-Com much like Drive Me Crazy…only all grown up and having a roll in the hay with the hot actors in the film!” Read More
Warrant Reveals Homeland Security Seized Mt. Gox’s Dwolla Account for ‘Unlicensed Money Transmitting’
Yesterday the Department of Homeland Security shut down Bitcoin trading platform Mt. Gox’s ability to accept or send transfers using Dwolla, a mobile payment service. A representative from Dwolla told Betabeat that the DHS had sent them a “seizure warrant” for the account, but declined to provide further detail. Now, in the warrant, obtained by Ars Technica, the reason for the seizure has been revealed: DHS believes Mt. Gox is operating an “unlicensed money transmitting business.” Read More
It’s simply a part of life: sometimes, when you emerge from the depths of the Internet to refill your Star Trek mug with Stumptown coffee, you accidentally encounter a real live girl. You know, that genre of human being that has boobs and always keeps a copy of Lean In on her desk. Your heart might skip a few beats as you’re forced to pass by her, dreading having to interact with someone outside of your favorite IRC channel. A wave of relief hits you as she keeps her eyes glued to the floor and doesn’t acknowledge you: you’re safe. For now. Read More
Since Google has invented Glass, an intricately built face computer that’s only purpose is to display Reddit while showering, it now has to entice the public to buy the dopey devices. If a new survey is to be believed, that’ll be an uphill challenge: Just 10 percent of respondents would wear it on the regular–regardless of how much it costs. Read More
Looks like we’ve got a real barn-burner on our hands!
For months, hedge funder Chris Hansen and Microsoft CEO Steve Ballmer have worked to relocate the Sacramento Kings to Seattle, which has been NBA-less for five years. Their plan: to make the owners, the Maloofs, an offer they can’t refuse. But the mayor of Sacramento–who happens to be former NBA star Kevin Johnson–doesn’t want the team going anywhere. He’s rounded up rival techies who might buy from the Maloofs and prepared a big bushel of subsidies for them. Last month, the league rejected the Seattle group’s request to move the team.
PayPal is dropping processing charges for users of its mobile payment platform in an attempt to better take on Square and Groupon. [Verge]
Google is expected to debut a competitor to Spotify later today. Which one of you asked for this? [New York Times]
This is happening: “Boost VC is launching a fund of at least $300,000, called the Boost Bitcoin Fund to invest in Bitcoin startups.” [Forbes]
Airware, a company that creates the insides of unmanned drones, is now freshly funded. Andreessen Horowitz just pumped a $10.7 million Series A funding into it. [TechCrunch]
A Blackberry BBM app is coming to iPhone and Android phones this summer if you still remember your pins. [BGR]