The Securities and Exchange Commission announced that the former chief executive officer of Jumio, Daniel Mattes, agreed to pay $17 million to settle charges he defrauded investors in the private mobile payments company.

According to the complaint filed in federal court in California, Mattes reported to investors that Jumio had gross revenue of $251 million, when revenues were really $17.2 million in a two-year period. Mattes also said net losses were $9.7 million, rather than $36 million. He then sold shares he held personally to investors in the private, secondary market and made approximately $14 million, hiding the sales from Jumio’s board of directors.

Mattes allegedly told one investor that he didn’t want to sell any of his shares because there was “lots of great stuff coming up,” and that “he’d be stupid to sell at this point.”

Mattes neither admitted nor denied the allegations.

“Mattes enriched himself at investors’ expense by making false claims about Jumio’s financial results,” the Associate Regional Director for the SEC’s San Francisco office, Erin Schneider, said in a statement. “Company executives must provide investors with accurate information irrespective of whether their companies are publicly or privately traded.”

The SEC also settled a proceeding against Jumio’s former chief financial officer, Chad Starkey, for failing to exercise reasonable care with Jumio’s financial statements.

Jumio restated its financial results in 2015. It filed for bankruptcy in 2016.

Mattes agreed to pay more than $16 million in disgorgement and prejudgment interest plus a $640,000 penalty.

Starkey, who entered into a cooperation agreement, agreed to pay $420,000 in disgorgement and prejudgment interest.

The settlement is subject to court approval.

“Jumio severed all ties with former founder, Daniel Mattes, and former CFO Chad Starkey in 2015, and they have not been involved with the successor company, Jumio Corp., in any capacity,” said Jumio president Robert Prigge in a statement.

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