Business owner accused of bilking investors in tech startup scam

Indianapolis resident David Betner has been charged by the Marion County prosecutor with multiple felonies related to his business enterprise, Darepoint.

Prosecutors say Betner took approximately $383,970 from would-be investors and used it for personal expenses. They say he misled those investors by telling them that his company was developing a social media website and application that was on the verge of a profit-generating buyout.

A call to a phone number listed for Betner went unanswered Wednesday morning. His attorney, Nathan Vining, declined to comment when contacted by IBJ.

Betner was charged with 19 counts: eight counts of fraudulent or deceitful act in the offer, sale or purchase of a security; six counts of theft; two counts of forgery; and one count each of corrupt business influence, acting as an unregistered broker-dealer and check deception.

Prosecutors said that as investors became wary of Betner, he allegedly claimed that Facebook was on the verge of buying Darepoint for hundreds of millions of dollars. During the investigation, officials with the prosecutor’s office said Facebook confirmed that no business records were found between Betner and Facebook. Several victims told investigators that no record demonstrating any legitimate business activity was provided to investors.

 “As alleged, Mr. Betner took personal profit from misleading victims who were deprived of significant amounts of money, as much as $188,000 from a single would-be investor, through what they believed were loans or investments in a legitimate business,” Prosecutor Terry Curry said in a statement. “As we will continue to warn the public, if an opportunity sounds too good to be true, then it is undoubtedly too good to be true.”

“This is not the first time an individual has earned the trust of Hoosiers and defrauded them instead. Technology changes but fraudsters keep using the same playbook. We urge investors to do their homework before investing and to contact the Secretary of State’s office if anything seems suspicious,” said Indiana Secretary of State Connie Lawson.