Sxip Identity, a Vancouver-based startup that's built a tool for porting your Web identity across sites, may have hustled investors out of $370,000 by misrepresenting acquisition efforts by tech titans Google and Yahoo. Founder, CEO and president Dick Hardt (no joke) now says the company is insolvent, and has no plans to honor the convertible bridge notes which were to revert to cash or equity upon sale or additional investment in the company. Where did the money go?At an identity conference a few years ago, Sxip handed out advertising fliers with the slogan, "Who's the Dick on my blog?"
Well, Sxip Identity apparently owes Sxip Networks, also founded by Hardt, $4.7 million — and owes Hardt $275,000. The angel investors have filed suit, alleging that Hardt never disclosed the existence of the other company, and that the arrangement puts Hardt in a position to recoup money from the company before other investors do.
Well, I guess now we know.