The founder of Mozido Inc., one of the most highly-valued U.S. financial-technology startups as recently as a few years ago, was accused of defrauding the company’s investors and using their dollars to fund a luxurious lifestyle for himself and his associates.
In charges filed Monday, the Securities and Exchange Commission said Michael Liberty and four others misled investors about Mozido’s worth and its financial results. The SEC also said Mr. Liberty directed investors to put money into a series of shell companies under...