A former Arizona startup CEO faced federal embezzlement charges after allegedly taking at least $1.5 million from Cyber Dive. Jeffrey Gottfurcht was accused of using company money to buy gifts for his girlfriend, FOX 10 Phoenix reported.
The Mesa startup sells child-safety smartphones that allow parents to monitor their children’s online activity. Co-founder Derek Jackson said the alleged theft left the company struggling to stay open and seeking new investors.
According to FOX 10, Gottfurcht stood accused of lying and altering documents to deceive investors before taking the money. The report drew on court documents and Jackson’s account.
Arizona Startup CEO Allegations Followed Document Questions
FOX 10’s report said warning signs emerged at Cyber Dive on Feb. 13. Jackson described questions about routing documentation for money associated with an acquisition deal.
Jackson said someone asked where the documents were and said Gottfurcht had promised to send them. Jackson recalled responding that he did not know which deal they were discussing.
“They mentioned to me something about getting routing documentation for funds from an acquisition deal,” Jackson said. His account described the moment discrepancies became apparent at the company’s office.
The allegations against the former Arizona startup CEO concerned company funds and records, according to the report. Court documents said Gottfurcht used the money for a Lamborghini, a four-bedroom Miami house and a diamond ring.
The report said the gifts were for Gottfurcht’s girlfriend, whose identity was withheld because she had not been charged. Jackson confirmed the purchases when asked about the car, ring and house.
Cyber Dive Cut Its Workforce
Half the workforce at Cyber Dive’s headquarters was let go, FOX 10 reported. Jackson became interim chief executive and sought new investors while dealing with the loss of a business partner and friend.
“It’s a huge gut punch,” Jackson said of the effect on the startup. He said staying motivated to keep Cyber Dive operating had been difficult.
Jackson alleged that Gottfurcht drained the company’s account to zero. Jackson put the total amount taken closer to $4 million, a separate figure from the at least $1.5 million described earlier.
The report described Cyber Dive as operating from a Mesa business complex. Its financial condition, according to Jackson’s account, had become precarious after the alleged loss of funds.
Related Grit Daily coverage includes the Oakes Farms fraud allegations, the Kalder founder charges, and eFishery’s investor losses. Those reports concern separate businesses and legal matters.
Wife Assisted Authorities, Court Papers Said
No one answered the door at the Paradise Valley home Gottfurcht shared with his wife and three children. Court paperwork said his wife was seeking a divorce and helped turn him in to authorities.
FOX 10 reported that Gottfurcht had previously been arrested in Scottsdale in May over domestic-violence allegations. The report said he remained behind bars on a $250,000 bond.
Jackson’s immediate priority was finding new investors to keep Cyber Dive operating. He was serving as interim chief executive while the former CEO faced the federal embezzlement charges.
