The former director of auto marketplace startup Tred was indicted this week by a federal grand jury in Seattle on five counts of wire fraud in an alleged scheme to steal more than $2 million from the company,
- John Whisenant, formerly of Tacoma, Wash., was arrested last month and accused of making at least 57 unauthorized transfers from Tred to 14 of his own bank accounts.
- According to the U.S. Attorney’s Office for the Western District of Washington, beginning in about June 2019 and continuing until November 2021, Whisenant disguised the transfers as legitimate business expenses in the company’s accounting software with a variety of false entries.
- He allegedly used the money to fund a “lavish lifestyle,” according to a press release, which said Whisenant bought luxury automobiles such as Porches, Mercedes, a $123,096 Audi E-Tron, and a $98,100 Tesla. The complaint also says he rented luxury homes in Southern California and purchased two airline tickets to Paris at a cost of nearly $23,000 each.
- Founded in 2012, Tred aimed to make the process around buying and selling used cars faster and easier. The company raised $25 million in September 2021 and was acquired in September of last year by Cox Automotive, the parent company of Autotrader and Kelley Blue Book. The acquisition price was not disclosed. Tred is now branded as Private Seller Exchange.
