I know of a startup that bought another startup using an investment bank. The startup that was the acquiring entity later had the CEO charged with crimes relate

I know of a startup that bought another startup using an investment bank. The startup that was the acquiring entity later had the CEO charged with crimes related to a previous company they had founded and were CEO of many years ago. Media scrutiny kicked in on their then current venture the acquiring company and it turned out the company they bought had never conducted any business whatsoever with the clients they had publicly and repeatedly touted. When the acquiring company CEO took a plea deal and admitted to the crimes of their past they got leniency from the feds for their frauds. They didn’t serve a day in jail. They admitted they stole eight figures from their investors. Not one investor filed a lawsuit against them. I’ll never understand that.