ACCT 320
Current Event Report 2
UMGC
ACCT 320 Fraud Detection and Deterrence
On Friday, March 26, 2021, Daniel Boice the CEO and co-founder of Trustify Inc, a
private technology start-up company that connected customers with private investigators were
sentenced to 97 months in prison plus 3 years of supervised probation and ordered to pay
18,131,742.21 in restitution and 3.7 million in forfeiture (Department of Justice, U.S. Attorney's
Office, Eastern District of Virginia, 2021)). Most deserving because Boice fraudulently
convinced individuals and corporate investors to invest over $18 million in the start-up under
pretenses. He falsified financial statements, overstated monthly and annual revenues, and
fabricated being a large company that was also investing into the start-up to elude growth.
Boice used the money from the investors to purchase personal items and services such as
business credit cards usage, to lock in a down payment on a $1.6 million house, a beach house
worth $1 million, to splurge on chauffer, house manager, various luxury items, family vacations,
private jet trips and over $100,000 for premium seats at sporting events (Department of Justice,
U.S. Attorney's Office, Eastern District of Virginia, 2021). As a result of his unauthorized
fraudulent and reckless spending, Trustify could no longer operate due to a decline in revenue.
In this case, Boice committed not just one but several forms of fraud. There was
misappropriation of funds as Boice was using the money for his personal use including putting
money into his consulting business. He committed securities fraud because he falsified financial
Current Event Report 2
UMGC
ACCT 320 Fraud Detection and Deterrence
On Friday, March 26, 2021, Daniel Boice the CEO and co-founder of Trustify Inc, a
private technology start-up company that connected customers with private investigators were
sentenced to 97 months in prison plus 3 years of supervised probation and ordered to pay
18,131,742.21 in restitution and 3.7 million in forfeiture (Department of Justice, U.S. Attorney's
Office, Eastern District of Virginia, 2021)). Most deserving because Boice fraudulently
convinced individuals and corporate investors to invest over $18 million in the start-up under
pretenses. He falsified financial statements, overstated monthly and annual revenues, and
fabricated being a large company that was also investing into the start-up to elude growth.
Boice used the money from the investors to purchase personal items and services such as
business credit cards usage, to lock in a down payment on a $1.6 million house, a beach house
worth $1 million, to splurge on chauffer, house manager, various luxury items, family vacations,
private jet trips and over $100,000 for premium seats at sporting events (Department of Justice,
U.S. Attorney's Office, Eastern District of Virginia, 2021). As a result of his unauthorized
fraudulent and reckless spending, Trustify could no longer operate due to a decline in revenue.
In this case, Boice committed not just one but several forms of fraud. There was
misappropriation of funds as Boice was using the money for his personal use including putting
money into his consulting business. He committed securities fraud because he falsified financial
