A former chief executive at a San Francisco tech firm will spend two years in prison for lying to investors by saying his company was about to be bought by Cisco Systems when it was not.
Jonathan Mills was sentenced Tuesday after pleading guilty to two counts of wire fraud last year. U.S. District Judge Richard Seeborg also ordered $572,000 in restitution and a $6,000 fine.
Mills, 30, was founder of Motionloft Inc. The company makes sensors to track pedestrians and vehicles as they visit retail stores.
Federal Prosecutors say Mills told potential investors in 2013 that Cisco had agreed to buy Motionloft for $760 million. He was fired in December of that year. Before he left, Mills was accused of collecting $765,000 based on the false claims to investors, knowing that he had no authority to sell a stake in Motionloft.
Case: U.S. v. Mills, No. 14-cr-133RS