Shiloh Luckey, founder and former CEO of Los-Angeles-based tax-compliance startup ComplYant, is under federal criminal investigation for alleged securities and bank fraud, according to recent court filings.
The investigation is being conducted by the FBI and the U.S. Attorney’s Office, while the Securities and Exchange Commission (SEC) has already filed a civil complaint against her.
ComplYant raised more than $13 million from prominent venture capital firms, including a $5.5 million seed round in 2022 led by Craft Ventures, the San Francisco investment firm co-founded by investor and White House adviser David Sacks. The startup was founded in 2019 to help small businesses manage complex, multi-state tax compliance.
According to the SEC, Luckey — who previously went by the name Shiloh Johnson — routinely misled investors about the company’s financial performance. Regulators allege she claimed ComplYant’s monthly revenue grew from approximately $2,500 in late 2020 to more than $250,000 by September 2022, and that the company was adding dozens or even hundreds of new paying customers each month.
In reality, the SEC says, ComplYant generated an average of about $250 in monthly revenue over that period and added fewer than four new subscribers per month. At no point, regulators allege, did the company exceed $620 in monthly revenue.
The civil complaint further accuses Luckey of misappropriating millions of dollars in company funds to finance personal expenses, including the purchase of her home, Super Bowl tickets, luxury travel to Aspen, Miami Beach, Turks and Caicos, and Lisbon, and a destination wedding in the Caribbean. The SEC estimates she siphoned off at least $2.2 million in investor funds for personal use.
Regulators also allege that Luckey falsely represented herself as a certified public accountant (CPA), despite there being no record of her holding the credential.
Reached by phone, Luckey declined to comment, saying, “I don’t have anything to offer you,” before hanging up.
She has not formally responded to the SEC’s allegations and is representing herself in court. The FBI and SEC declined to comment, while a spokesperson for Craft Ventures did not respond to requests for comment.
Court records show Luckey was notified in April that she was under criminal investigation. She subsequently filed a petition seeking to pause the SEC’s civil case pending the outcome of the federal probe.
ComplYant abruptly shut down last year after hiring more than 50 employees. Former staff members reported delays of up to seven weeks in receiving final paychecks, and some said their 401(k) contributions were missing, according to prior reporting.
The case underscores a broader regulatory crackdown on startup misconduct following high-profile scandals such as Theranos and FTX.
“Startup founders cannot fake it until they make it by falsifying revenue metrics,” SEC regional director Monique Winkler said in a statement, pointing to recent criminal and civil actions against founders accused of misleading investors.
Despite ComplYant’s collapse, Luckey has continued posting tax and accounting advice on TikTok, where she has nearly 24,000 followers. In October, she launched a new venture called HabitLoop, described as a digital financial assistant aimed at helping users manage their money.
“I grew up with very poor financial habits,” Luckey said in a video introducing the startup. “This is something I built on hard lessons.”
The federal investigation remains ongoing.
