NS8 launched in 2016 to provide online fraud detection and prevention software for small businesses. More than 200 NS8 employees were laid off last week after executives told them the company was under investigation by the SEC for fraud. The news was startling for many, considering the company had announced a $123 million Series A funding round in June, led by global VC firm Lightspeed Venture Partners. In a statement, NS8 said that its board “has learned that much of the company’s revenue and customer information had been fabricated by Mr. Rogas.” The company added that no other employees or stakeholders had been charged and that it is cooperating with federal investigators. In its complaint, filed in the Southern District of New York, the Justice Department alleged that from January 2019 to February 2020, between 40% and 95% of NS8’s assets were made up. During that period, the agency alleged, Rogas presented doctored bank statements to reflect over $40 million in fictitious revenue. Charges by the Justice Department carry penalties up to 20 years in prison. Rogas is expected to face a judge in Nevada on Friday.