The former CFO and treasurer of Fundraise, Michael S. McCord (pictured right), says he was ousted by the real estate crowdfunding startup after alerting CEO Ben Miller (pictured, left) to in-house fraudulent behavior.
Fundrise fired McCord in early February, alleging that Michael blackmailed the company for $1M by threatening to reveal inappropriate handling of real estate deals. “The extortion allegations are baseless, and nothing more than a pathetic deflection attempt from the real story,” McCord says.
According to McCord, he refused to take part in the fraudulent deals, opening the gates for his exit. He says they exchanged severance proposals before he was fired "abruptly" and cut off from his company email, the Washington Post reports.
Investors don’t seem perturbed by the scandal, as Fundrise’s eREIT has been regularly selling out within hours, if not minutes, of opening. [WaPo]
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