Fundrise, a crowdfunding platform that facilitates individual investment in real estate via so-called eREITs, has announced by way of an SEC filing that it has fired its CFO, citing an attempt by the former executive to extort the company for $1m.
In the first exhibit in the filing, a letter to Fundrise's stakeholders states:
“Strategic Investors & Advisors, I am saddened to have to inform you that an employee of our company has engaged in what we believe to be an attempt to extort over $1M from the company. As part of this, he claims the company acted inappropriately concerning two real estate deals. Though we believe there is no merit to his claims, we take any allegation with the utmost seriousness. As a result, we have engaged a third-party financial audit firm to conduct a thorough investigation concerning his allegations. We are pursuing all appropriate and precautionary steps to protect our investors and our organization. Furthermore, we are contacting the appropriate law enforcement agency to report what we believe to be his criminal behavior.”