Nevin Shetty, former CFO of the Seattle-based retail software firm Fabric, was sentenced to two years in prison following a federal conviction for a wire fraud scheme involving the misappropriation of $35 million. U.S. District Court Judge Tana Lin highlighted the severe impact of Shetty's actions, which led to job losses for 60 employees and nearly jeopardized the company’s existence.
After a jury found him guilty of four wire fraud counts last November, Shetty was also ordered to pay restitution of $35,000,100 and will face three years of supervised release post-incarceration. The prosecution had sought a nine-year sentence, emphasizing the calculated nature of Shetty’s crime, which involved diverting funds to his own cryptocurrency venture, HighTower Treasury, without authorization.
Shetty had joined Fabric in March 2021, shortly after the company secured $43 million in funding. Despite implementing a policy for conservative investments, he redirected funds into high-risk decentralized finance platforms that ultimately collapsed, resulting in substantial financial losses. Following his actions, Shetty confessed to colleagues, leading to the investigation that culminated in his conviction.