Joonko founder Ilite Raz pleads guilty to a massive $27 million fraud
Raz admitted to defrauding venture capital funds and private investors. She did so by submitting forged bank statements, fictitious customer contracts and false financial reports that inflated the company’s reported revenue
Ilit Raz, the Israeli founder and former CEO of AI startup Joonko, pleaded guilty in a New York court last night to securities fraud, the U.S. Department of Justice said.
According to the department, Raz admitted to defrauding venture capital funds and private investors in order to raise about $27 million. She did so by submitting forged bank statements, fictitious customer contracts and false financial reports that inflated the company’s reported revenue. When board members and investors began to raise concerns and question Joonko’s true financial condition, Raz continued providing fraudulent documents in an effort to buy time, the department said. The charges carry a maximum sentence of 20 years in prison. Sentencing will be handed down at a later date by Judge Alvin Hellerstein.
Founded in 2016, Joonko developed software designed to use AI to promote workplace diversity. The platform was intended to as sess diversity within organizations, recommend qualified candidates for open positions and flag potential imbalances. Over the years, the company raised $38 million from investors including Insight Partners and Vertex Ventures. At its peak, Joonko employed about 50 people, most of them in Israel.
In June 2023, it was reported that Raz and several senior executives had left Joonko, while most of the company’s employees had been called in for hearings. The developments followed an investigation by the company’s board and investors, which alleged that the number of actual customers was significantly lower than the figure management had reported to investors. Joonko had said it had 150 customers, while the actual number was substantially lower.
In June 2024, the U.S. Securities and Exchange Commission (SEC) filed charges against Raz, accusing her of defrauding investors of at least $21 million. According to the complaint, Raz presented forged bank documents in an attempt to reassure one of the company’s investors. Her plan unraveled after the investor pressed her with questions about the documents, at which point she admitted to falsifying records and inflating the company’s figures.
“Fraud of this kind harms investors and makes it more difficult for other entrepreneurial businesses to raise capital,” Jamie McDonald, a New York state prosecutor, said last night. “Raz lied to investors about key aspects of her startup, forged documents to support those lies and sought to secure $27 million in investments. Her company, which is now in bankruptcy proceedings, has left investors who fell victim to the fraud facing losses of millions of dollars.”
“The guilty plea makes clear that defrauding investors and misrepresenting material facts about a company will not be tolerated,” said the FBI representative. “By pleading guilty, Raz acknowledged the seriousness of her conduct and the harm it caused investors. The victims deserve justice, and the FBI will continue working to ensure they receive it.”
First published: 13:55, 12.09.26
