CEO of rocket engine startup accused of bankrupting company by misuse of funds
Buyer beware: Christopher Craddock, the founder in 2014 of the rocket engine startup RocketStar, has now been accused by his former CEO of bankrupting the company by the misuse of funds for “pricey jaunts to Europe, jewelry for his wife, child support payments, and, according to the company’s largest investor, ‘airline tickets for international call girls to join him for clandestine weekends in Miami.'”
Onetime stockbroker Christopher Craddock established RocketStar in 2014 after financial regulators barred him from working on Wall Street over a raft of alleged violations. Craddock held the firm out as “an entity that intended to reinvent space exploration,” states a $6 million lawsuit filed by former CEO Michael Mojtahedi and obtained by The Independent.
….according to Mojtahedi’s complaint, RocketStar “is nothing more than a Ponzi scheme… [that] has been predicated on Craddock’s ability to con new people each time the company has run out of money.”
“Craddock recklessly and lavishly misappropriated for his lifestyle almost every cent RocketStar received from investors, running the company into the ground by August 2024,” the complaint says. “At that point, Craddock’s ‘keeping up with the Joneses’ lifestyle caught up with him, investor funds dried up completely, and his house of cards collapsed.”
Whether Craddock was the crook Mojtahedi say he was remains at this moment unproved. In a sense however this is beside the point. This story illustrates one reality about capitalism that no one should ever forget: Be careful with whom you invest your money. Make sure you know their background. And above all, investigate the company thoroughly before investing in it.
It sure appears that the wealthy people who invested in RocketStar did none of this research. They were the con-man’s perfect mark, innocently handing over cash to someone because what he said sounded good. Rocket science however ain’t easy, and merely sounding good is not enough.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon. from any other book seller, or direct from my ebook publisher, ebookit.
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
Buyer beware: Christopher Craddock, the founder in 2014 of the rocket engine startup RocketStar, has now been accused by his former CEO of bankrupting the company by the misuse of funds for “pricey jaunts to Europe, jewelry for his wife, child support payments, and, according to the company’s largest investor, ‘airline tickets for international call girls to join him for clandestine weekends in Miami.'”
Onetime stockbroker Christopher Craddock established RocketStar in 2014 after financial regulators barred him from working on Wall Street over a raft of alleged violations. Craddock held the firm out as “an entity that intended to reinvent space exploration,” states a $6 million lawsuit filed by former CEO Michael Mojtahedi and obtained by The Independent.
….according to Mojtahedi’s complaint, RocketStar “is nothing more than a Ponzi scheme… [that] has been predicated on Craddock’s ability to con new people each time the company has run out of money.”
“Craddock recklessly and lavishly misappropriated for his lifestyle almost every cent RocketStar received from investors, running the company into the ground by August 2024,” the complaint says. “At that point, Craddock’s ‘keeping up with the Joneses’ lifestyle caught up with him, investor funds dried up completely, and his house of cards collapsed.”
Whether Craddock was the crook Mojtahedi say he was remains at this moment unproved. In a sense however this is beside the point. This story illustrates one reality about capitalism that no one should ever forget: Be careful with whom you invest your money. Make sure you know their background. And above all, investigate the company thoroughly before investing in it.
It sure appears that the wealthy people who invested in RocketStar did none of this research. They were the con-man’s perfect mark, innocently handing over cash to someone because what he said sounded good. Rocket science however ain’t easy, and merely sounding good is not enough.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon. from any other book seller, or direct from my ebook publisher, ebookit. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
10 years of fraud? What a great life-style! He should spend the next 20 years in prison! This kind of behavior makes it even tougher for legitimate start-ups to raise money. On the other hand, the folks giving the dough should have checked to see if designs were made & if any metal was being cut. It‘s not rocket science to hire an expert to oversee your investments.
This right here is NewSpace ‘s biggest problem.
Investors are already wary of aerospace’s up-front costs.
Had he been behind a computer start-up, such news would slow investing only a tad bit if that.
Computer start-ups just need cubicles, pizzas, and the occasional Funko pops to go on the desks of code monkeys.
Branson did more damage–but he at least he is stylish.
For years–I had no idea what poor Gary Hudson looked like. I knew Tumlinson–but in my minds eye, I thought Hudson would be this grizzled looking individual who lived too long, saw hardship in every wrinkle.
Instead–he looked like a lawyer.
Too thin.
A frump like me with a redneck accent might have had better luck.