Federal authorities have arrested Shiloh Luckey, a 42-year-old woman from Inglewood, California, who is accused of running a $13.3 million investor fraud scheme through her startup company, ComplYant App Inc. Luckey was arrested in Fort Lauderdale, Florida, on Sunday, just before she was set to take a cruise. After being released on bond in Florida, she is expected to appear in a Los Angeles federal court in the coming weeks. She faces multiple charges, including securities fraud, wire fraud, bank fraud, and money laundering. According to the U.S. Attorney’s Office, Luckey is accused of misleading investors between September 2020 and September 2023 by falsely presenting her company as financially stable and successful. She allegedly used updated reports, pitch decks, and promotional materials to inflate the company’s subscription numbers, customer base, cash reserves, and recurring revenue. Prosecutors claim that Luckey also falsely claimed to be a licensed certified public accountant (CPA) with significant experience in accounting, tax management, and compliance, despite having no such credentials. Investors, believing in Luckey’s claims, poured millions of dollars into what they thought was a promising startup. However, prosecutors allege that Luckey used a portion of the raised funds for personal expenses, including her Inglewood home, a Tesla car, and a destination wedding in the Caribbean. By September 2023, ComplYant App Inc. had run out of money and shut down, leaving investors with significant financial losses. Prosecutors estimate that Luckey defrauded investors of at least $13.3 million in total. The indictment also includes details of an alleged check-kiting scheme in 2022. Prosecutors say Luckey wrote a $1.5 million check from a ComplYant bank account that had no available funds, deposited it into a different company account, and then used the money to purchase her home. When the original bank discovered the check was worthless, Luckey allegedly covered the negative balance by depositing new funds from her ongoing fraud. If convicted on all charges, Luckey could face up to 30 years in federal prison for bank fraud, up to 20 years for each wire and securities fraud charge, and up to 10 years for each money laundering charge.