New York City prosecutors charged Andrew Albert with allegedly duping investors out of $590,000 to build a high-end retail clothing website, but using over half the money to finance a high-end lifestyle instead. The idea was brilliant -- use personalized avatars built to users' measurements to shop Prada, Gap, Ralph Lauren, and other stores. No offense to fashion sites, but most customers do not look like mannikins or fashion models.
Alas, the Wall Street Journal reported he allegedly used $348,360 to pay for groceries, apartment renovations, hair and make-up, dog grooming, health club membership, and other personal items. Worse, he failed to pay income tax in his name of his company's name, Virtual Etail Group LLC, for 2008 and 2009. This case, plus the civil suits filed by the investors, will work their way through the court system.
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