Joonko founder pleads guilty to $27 million securities fraud
Ilit Raz, founder of AI hiring startup Joonko, pleaded guilty to federal securities fraud after misleading investors about the company's customers and revenue. She raised approximately $27 million across two funding rounds using fabricated customer testimonials, forged bank statements, and fictitious purchase orders.
What happened
Ilit Raz, 40, founder and former CEO of Joonko Diversity Inc., pleaded guilty to federal securities fraud in U.S. District Court in Manhattan on Friday, September 13, 2026.
Raz misled investors about customers and revenue at the AI hiring startup, telling investors that Joonko had more than 100 customers including well-known global brands in fashion, travel, sports apparel and credit cards, and that it worked with more than 100,000 job candidates.
To support the pitch, Raz provided fabricated customer testimonials and later sent forged bank statements and fictitious purchase orders with forged signatures after an investor raised questions about the company's performance.
Reported impact
Investors, including venture firms, invested approximately $10 million in a Series A round in June 2021 and approximately $17 million in a Series B round in June 2022.
Prosecutors said the now-defunct company left investors with millions of dollars in losses.
Index analysis
The scheme unraveled in 2023 after an investor confronted Raz and questioned Joonko's performance, requesting financial information.
Governance controls
Joonko filed for bankruptcy protection in Delaware in May 2024.
The Securities and Exchange Commission filed a parallel civil case seeking penalties, disgorgement and an officer-and-director bar.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.