There are a couple of ways of looking at this, these are all thoughts or considerations you should make. If he is not yet been sentenced then there is no point

There are a couple of ways of looking at this, these are all thoughts or considerations you should make. If he is not yet been sentenced then there is no point in telling them. It could be he gets a slapped wrist or community service in which case there is no need to disclose this information as he can continue to work as is. Also if your VC meeting is before the case then there is also a probability the case could be dropped (no matter how big or small). In which case he it will not effect them. Is he still under probation? You could release him? Then its up to you what you say to investors. If you tell the investors they might be rather brutal and say they want him gone before any investment talks, or funding. This could be especially bad if he is not proven guilty. There is more than one thing to think about here, and not knowing all the facts just means we can only give you thoughts and ideas. Its up to you to work out whats best given the information you know.