Joonko CEO pleads guilty to $27 million securities fraud

Ilit Raz, who founded and formerly served as Chief Executive Officer of Joonko, has pleaded guilty to securities fraud charges in the United States. She confessed to misleading investors to secure around $27 million in funding for the company.

The fraud scheme, which took place between 2021 and 2022, involved Raz making false statements regarding Joonko's customer base and revenue. The deception was uncovered around 2023 when an investor's suspicions led to further investigation.

Approximately $27 million was raised from investors through fraudulent means. Several victims of the scheme incurred millions of dollars in losses.

Ilit Raz, an Israeli citizen, was the founder and former CEO of Joonko Diversity, Inc. The company claimed to provide AI-based services designed to assist employers in identifying and hiring job candidates.

To attract and retain investors, Raz falsely asserted that Joonko had over 100 customers, including major global companies, and had engaged with more than 100,000 job candidates. She also provided fabricated customer testimonials and forged financial documents, such as bank statements and purchase orders.

The fraudulent activities led to Joonko's bankruptcy and significant financial losses for its investors. The case highlights the severe consequences for founders who engage in deceptive practices to secure investment.

The US Attorney's Office for the Southern District of New York asserted that Raz knowingly misled investors, and the companies she claimed as customers had no business relationship with Joonko.

Following her guilty plea, Ilit Raz faces a maximum prison sentence of 20 years for the securities fraud charges.