A former San Diego startup CEO was sentenced Monday to four years in custody — and millions of dollars in payments — for embezzling money to his lavish lifestyle.
Jeffrey Fildey, a co-founder and ex-CEO of GoFormz, stole $1.5 million from the startup between 2015 and 2017. The funds were used for extravagant purchases, including a “$20,000 diamond ring, fancy vacations, an Audi, and recurring transfers to a woman with whom he was having an extramarital affair,” according to a statement from the U.S. Attorney’s Office.
GoFormz, founded in 2012, is a local tech company that helps businesses digitize forms. The company has roughly 40 employees, according to LinkedIn, and raised $11.5 million from startup investors over the years.
Fildey used several ways to siphon money out of the startup. He obtained loans in the name of the company, and then promptly transferred the funds into his personal s. He used GoFormz credit cards for personal expenditures and took out cash advances. And he withdrew money directly from the startup’s bank .
GoFormz learned of Fildey’s actions when its payroll bounced in July 2017, and the company realized it had only approximately $9,000 in its bank . The company had to fire 12 of its 42 employees and its valuation plummeted, according to court records.
“Small business is the lifeblood of our community,” said Acting U.S. Attorney Randy Grossman in a statement. “In stealing from his business, Mr. Fildey stole from all those whose livelihoods depended upon the company. Embezzlement and fraud will be prosecuted to the full extent of the law.”
In addition to 51 months in custody, Fildey was ordered to pay restitution of $1,345,897 and to forfeit $1,156,001. He was immediately remanded into custody to begin serving his sentence.
