Startup land has no immunity from scam artists. The Austin Veith case should spur investors and entrepreneurs to do due diligence on people whom you partner with.
A Boulder businessman who pleaded guilty to theft in Lafayette in 2008 and again earlier this year in Boulder in connection with his activities at UsingMiles was sentenced to 10 years in prison after violating the terms of his deferred sentence by trying to start up another online company.
Austin Slattery Veith, 33, also was sentenced to 25 years of probation and ordered to pay $1.08 million in restitution by Boulder District Judge Thomas Mulvahill late last month.
Veith pleaded guilty to one count of felony theft in 2008 and, as a condition of that plea deal, was granted a four-year deferred sentence beginning in February 2009 and was barred from engaging in business transactions without the approval of his probation officer.
But in June 2011, Veith was arrested again in New York and extradited to Colorado after police say he diverted $450,000 meant to fund Internet startups into his personal accounts, according to court records.