Mike Rothenberg, the venture capitalist once described as Silicon Valley’s “party animal,” now is fighting to stay out of prison.
(Bloomberg) — Mike Rothenberg, the venture capitalist once described as Silicon Valley’s “party animal,” now is fighting to stay out of prison.
In a criminal trial that begins Monday, Rothenberg faces charges of fraudulent conduct and making false statements that federal prosecutors say helped him misappropriate almost $19 million. He’s accused of lying to banks about his wealth while trying to obtain loans and taking fees beyond what investors agreed to. The government expects his jury trial in Oakland, California, to last at least a week.
Rothenberg was known for throwing lavish bashes: Hot-air balloon rides during Napa Valley wine tours; a so-called “Founder Field Day” that involved renting out the San Francisco Giants’ baseball stadium for batting practice and free massages each April; “Puppy Hours” that were essentially happy hours where people could cuddle with dogs. His events were fodder for HBO’s show, “Silicon Valley,” which aired a scene inspired by one of his gatherings. “When you’re doing something different, people will have fun with it,” he told Bloomberg in an interview in 2015.
Rothenberg’s lawyers failed to convince a judge to throw out the government’s claims in 2021 and January of this year. In their requests to dismiss the case, his attorneys had argued that some of the claims inadequately described the charges or weren’t brought in a timely manner. The lawyers didn’t respond to requests for comment.
Rothenberg has been entangled in other legal battles. Rothenberg and Silicon Valley Bank sued each other in 2018 and 2019 in a California state court.
The bank claimed Rothenberg refused to completely repay a loan of $4.25 million loan in a suit that is set to go to trial in April. The venture capitalist separately accused the bank of fraud and negligence in transferring those funds across his accounts in a complaint that he withdrew last year. He had claimed that the movement of funds made it seem like he was misappropriating investors’ money.
In 2018, he agreed to settle allegations by the Securities and Exchange Commission that he overcharged investors to fund personal projects.
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