Manish Lachwani, who served as HeadSpin’s CEO until he was forced to resign after an internal investigation, allegedly inflated the app-testing company’s financial metrics—such as annual recurring revenue—to boost its valuation to US$1.1 billion, according to court documents. (The Logic)

Talking point: After an internal investigation, the valuation of the Silicon Valley startup—which had backers including Tiger Global—was revised to about US$300 million. The SEC is charging him with violating antifraud provisions and wants him barred from serving as an officer and director, among other penalties. He also faces two criminal charges: wire fraud and securities fraud. The news comes as another infamous startup-fraud founder’s case moves toward a trial. Elizabeth Holmes, the founder of Theranos, will get her chance to tell her side of the story in court starting next week—though it remains unknown whether she will testify. Her alleged fraud continues to cast a shadow over the venture capital industry, both for women founders and other biotechs looking to raise capital.