LA Startup CEO Accused Of $13.3M Fraud, Funding Tesla, Caribbean Wedding

INGLEWOOD, CA — An Inglewood woman was arrested on federal charges accusing her of defrauding investors out of more than $13 million and using some of the money to buy a home and Tesla and pay for her wedding in the Caribbean, federal prosecutors announced Wednesday.

Shiloh Luckey, 42, also known as Shiloh Johnson, was arrested Sunday in Fort Lauderdale, Florida, before she attempted to board a cruise ship for a vacation, according to the U.S. Attorney's Office.

Luckey was released on bond and is expected to appear in federal court in downtown Los Angeles in the coming weeks.

A 15-count federal grand jury indictment charges Luckey with nine counts of securities fraud, three counts of wire fraud, one count of bank fraud and two counts of money laundering.

Luckey founded Los Angeles-based ComplYant App Inc. in 2019 and served as its CEO. The company marketed tax compliance services to small businesses for a monthly subscription fee, according to prosecutors.

Prosecutors claim Luckey misled investors about ComplYant's finances and customer base from September 2020 through September 2023.

Luckey is accused of proving pitch decks, investor materials and company updates that inflated the startup's revenue, customer numbers, subscriptions and cash reserves, according to the indictment.

She is also accused of telling investors she was a licensed certified public accountant with extensive experience in tax management, accounting and compliance. Prosecutors said Luckey has never been a licensed CPA.

Investors relied on those representations and poured millions of dollars into the company, prosecutors said.

Prosecutors claim Luckey then used some of the investment money for personal expenses, including the purchase of her Inglewood home, a Tesla and her wedding on the Caribbean island of Anguilla.

ComplYant experienced severe liquidity problems and ceased operations by September 2023, leaving investors with losses totaling at least $13.3 million, according to prosecutors.

The indictment also accuses Luckey of carrying out a check-kiting scheme in September and October 2022 to finance the purchase of her home.

Prosecutors claim Luckey wrote a $1.5 million check from a ComplYant account that did not have enough money to cover it, deposited the check into another company account at a different bank and wired the funds toward the home purchase before the first bank discovered the insufficient funds.

Prosecutors claim she later covered the resulting negative balance with proceeds from new investments obtained through the securities fraud scheme.

If convicted, Luckey faces up to 30 years in federal prison on the bank fraud count, up to 20 years on each securities fraud and wire fraud count and up to 10 years on each money laundering count.