According to a report of The Tampa Bay Journal, Tim Roberts, a serial entrepreneur, had started an online e-commerce platform Savtira in 2010. The startup later gained controversy after facing complaints from employees over unpaid wages. The investors also filed lawsuits against Roberts, and another Savtira’s executive, claiming they misrepresented the company’s health and valuation at the time of funding.
A federal grand jury last month had charged Roberts with wire fraud and conspiracy. The US Securities and Exchange Commission (SEC) had also charged Roberts, and two Savtira’s executives, with fraud. Interestingly, Roberts had resigned from his positions at HashingSpace a day before a six-count indictment against him was unsealed.
The court released him later on a $25,000 bond, while imposing a certain restrictions on his release, including a condition that he will not indulge in any fundraising round. The prosecutors, however, accused Roberts of getting involved with fundraising at the firms. They also noted that Roberts had owed SEC around $25,000 in penalty, imposed on him in 2008. He however paid the amount upon the intervention of media.
With his latest motion, Roberts wishes to sell his remaining stocks at HashingSpace to support his legal defense and personal expenses. The total value of his 93.96 million shares, at press time, is around $2.8 million (3 cents a share). He holds $567,503 worth of stocks in StationDigital as well.
The prosecutors are naturally against the motion, saying that Roberts cannot be trusted over presenting an accurate value of any stock he is involved with.
“His statements about his ventures have consistently been inaccurate and government would maintain intentionally misleading,” they added.
The motion will be heard by Federal Magistrate Anthony Porcelli on October 2nd.