Founder Who Raised Over $13M In VC Is Now Under Federal Investigation After Allegedly Misusing The Funds, Report Says – AfroTech
Shiloh Luckey is under federal investigation for allegedly mismanaging millions of dollars in venture capital funds.
Luckey, who formerly went by Shiloh Johnson, is the founder and CEO of ComplYant, a Los Angeles-based tax management platform for small business owners. She claims she launched the company after observing the pain points that small businesses can experience while she was working as a Certified Public Accountant (CPA).
“I saw firsthand how small business owners struggle with managing their tax deadlines. Running a small business is hard enough already, and on top of everything entrepreneurs have to manage, late fees and fines are the last things they need,” Luckey said in a news release. “Tax compliance is fragmented and complex, so it’s no wonder small business owners find it difficult to navigate. It’s time we make it much easier to do the hard stuff better.”
The statement was shared in a news release announcing a $5.5 million seed round that closed in 2022, led by Craft Ventures. Mucker Capital, Slauson & Co., and Techstars also participated in the round, which was intended to support the launch of additional tax tools, according to the news release.
Now, the venture is under investigation. According to a litigation release, the Securities and Exchange Commission has filed a civil complaint against Luckey, alleging she “fraudulently” raised over $13 million for her company between 2020 and 2023.
It claims she inflated ComplYant’s success, reporting monthly revenue had grown from nearly $2,500 in November 2020 to more than $250,000 by September 2022. It also states that she alleges the platform was securing dozens to hundreds of new subscribers each month. The complaint claims that the actual numbers were $250 per month and fewer than four new subscribers per month.
Additionally, Luckey allegedly portrayed herself as a licensed CPA to investors, according to Business Insider, though no record of a license has been found. She was also reportedly paying herself a salary and pocketed at least $2.2 million from investor funds for lavish purchases, including a home, Super Bowl tickets, a Caribbean wedding, and trips to Aspen, Miami Beach, Turks and Caicos, and Lisbon, reports the outlet.
“Startup founders cannot fake it until they make it by falsifying revenue metrics,” SEC Regional Director Monique Winkler warned in a statement, per Business Insider.
ComplYant permanently closed last year, and more than 50 employees whom the company had hired were left in the dark by Luckey, according to the outlet. It also took the employees seven weeks to receive their final compensation, and some of the funds from their 401(k) were allegedly missing.
Business Insider also states that she had been leveraging social media to share tax and accounting advice since the venture was closed. In one video, she positions herself as a CPA and tech founder, and shares an alleged track record of 15 years working in corporate tax accounting.
She also went on to launch HabitLoop in October 2025, a digital financial assistant that helps people manage their money.
“I grew up with very poor financial habits,” Luckey said in a video explaining the intent of launching HabitLoop, per Business Insider. “This is something I built on hard lessons.”
Luckey has also been under criminal investigation since April 2025. Business Insider reports she is being investigated by the FBI and the United States Attorney’s Office for securities and bank fraud. Luckey reported this when filing for the SEC civil case against her to be paused.
She intends to represent herself in court.
At the time of this writing, Luckey has not issued a statement about the investigation.
