Suit Alleges Rampant Fraud at Collapsed HUD Helmet Maker Skully

From Fortune

Early last week, Buzzfeed reported on a lawsuit alleging that the founders of Skully, which aimed to manufacture a next-generation motorcycle helmet before shutting down in late July, engaged in widespread misuse of funds, which included $2.5 million gathered from a crowdfunding campaign. The suit characterizes Skully co-founders Marcus and Mitch Weller as using “the corporate entities of Skully in such a fraudulent manner as to render the corporate entity a sham.”

Company funds were allegedly used for the brothers’ personal expenses, including apartment rent, grocery and restaurant bills, two Dodge Vipers, a rented Lamborghini, $2,000 spent at a strip club, and $2,345 worth of paintings. 

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