Victim Location 90013
Total money lost $100,000
Type of a scam Investment
The founder of this company, Cauri Jaye, taught a class in downtown LA about product. In this class he taught the students how to pitch and raise money. He also taught them about what type of contracts and agreements are signed. After the course was finished he and his wife Rebecca (the other co founder) approached three students about investing in the company. Because of what they had been taught in Cauri’s class the whole process seemed straight forward and wasn’t really questioned. However, it turns out all the agreements were in favor of the founders to continue their scam.
This was my first investment in tech and I trusted this teacher since I paid a lot of money for his course. I invested a six figure sum for a promise of equity in the future. After multiple requests for financial documents–which were all denied–he then blatantly lied about having 2.5 million dollars when it actually turns out this company owes more than $200,000 to the US Bank Tower.
They are so far in the red yet they are promising employees pay and then not paying them. They are also lying to investors to raise more capital. At this point the investors have left and dis associated from the company entirely but the founders have been spreading rumors about the investors amongst current employees. Employees are afraid to leave the company in fear of their reputations being tarnished by the founders and yet they aren’t getting paid. They are manipulated into working for free and are consistently lied to.
There is not much that can be done legally, but morally I feel as though I should warn the community to not give these people any money! They are extremely manipulative and will lie and do whatever it takes to get money from you and completely screw you over. Whether you are looking to invest or are a customer in some way discontinue your conversations with them and just walk away.