DoJ prosecutors in Massachusetts charged the former CEO and a senior vice president of Mozaic Payment System, Inc. with a wire‑fraud conspiracy for allegedly obtaining $20 million in equity funding through false statements. The indictment alleges fabricated financials, fake progress reports and misrepresentations to a Boston private equity investor; court proceedings are pending.

Federal prosecutors in the District of Massachusetts announced an indictment against the former chief executive officer and a senior vice president of Mozaic Payment System, Inc., alleging a scheme to defraud a Boston private equity firm of approximately $20 million in equity funding. According to the charging documents, the defendants purportedly induced investment by fabricating financial statements, overstating revenue and technological progress, and circulating deceptive investor materials and progress reports that misrepresented the company’s business operations and product capabilities. The indictment alleges that wire transfers and other electronic communications were used to further the scheme, bringing charges of wire‑fraud conspiracy and related offenses. The DoJ filing says those misrepresentations were material to the investor’s decision to provide capital and that the defendants concealed the alleged falsifications. The case is now in the federal court process, with initial appearances and pretrial motions expected. Prosecutors characterized the alleged conduct as a significant instance of investor fraud; defense counsel has yet to present its arguments publicly. The outcome will hinge on evidence of intent and the accuracy of investor communications.