Founders of Skully Smart Helmet are Sued with Allegations of Fraud

by San Antonio Attorney

Skully, the maker of smart helmets, had closed its business, and now a complaint brought against the tech start company may reveal what happened.

Skully officially closed a week ago and faces a fraud lawsuit.

Isabelle Faithhauer, a former employee, alleged that the founders of Skully spent the funds gathered through a crowdfunding platform on all expenses, such as groceries, restaurant bills, moving expenses, a luxury car rental during vacations, and a strip club.

The former bookkeeper said the company was a fraud and that business rules were disregarded to provide luxury for the company’s founders. They alleged used the company’s money to obtain personal items, such as posh gadgets, apartment rental for members of the family and motorcycles.

The alleged fraudulent operating expenses included a payment of $80,000 to an undisclosed cofounder (stated as a business travel to China), a first-class air travel to Hawaii, expensive paintings, and a luxury transportation rental, which were recorded as official company expenditures, according to Faithhauer.

After raising concerns regarding the operation, the former accountant said she was demoted and then eventually fired.

Skully used crowd funding for the augmented reality motorcycle helmet, which has a 180-degree blindspot camera display for extra awareness on the road. The company raised nearly $2.5 million via Indiegogo, and when it closed, the amount reached to $15 million with the help of venture capital.

But Skully formally closed in August after the co-founders were forced to leave by the investors. The company is expected to file a Chapter 7 bankruptcy case anytime soon.

Consequently, the shipments of helmets have stopped and there will be no refunds. Those who already paid the $1,450 helmet should get a bankruptcy notice and will have to file a claim. But Skully says the assets of the company are now controlled by creditors and it is uncertain if unsecured creditors will get paid.

Leave a Comment

Previous post:

Next post: