A Mercer Island man has been sentenced to two years in federal prison following his conviction for defrauding his former employer of approximately $35 million. Nevin Shetty, 42, was found guilty on four counts of wire fraud in a nine-day jury trial held in November 2025. U.S. District Judge Tana Lin highlighted the serious ramifications of Shetty’s actions, stating that the fraudulent activity had “significant and severe effects on the company,” leading to the layoffs of 60 employees and nearly pushing the business to the brink of closure.
Shetty was appointed as the chief financial officer of a private software company in March 2021. The organization had stringent policies in place requiring that funds be invested conservatively. Ironically, Shetty had been involved in drafting these very policies. Yet, in April 2022, he clandestinely transferred roughly $35 million into accounts associated with his venture, HighTower Treasury.
After securing the funds, Shetty diverted the money into high-yield decentralized finance (DeFi) cryptocurrency platforms that promised exorbitant returns exceeding 20%. While the scheme initially yielded about $133,000 in profits for Shetty and a business partner, the investments quickly deteriorated. By mid-May 2022, nearly all of the funds had vanished.
Investigations revealed that no executives or board members were aware of these unauthorized transfers at the time. Additionally, Shetty only disclosed the substantial losses after the money had been wholly depleted, resulting in his immediate termination.
First Assistant U.S. Attorney Charles Neil Floyd criticized Shetty’s actions, labeling the scheme as a blatant attempt to enrich himself at the expense of his employer. In addition to the prison sentence, Shetty has been ordered to pay $35,000,100 in restitution and will undergo three years of supervised release following his incarceration. Judge Lin has also placed restrictions on Shetty’s future employment, prohibiting him from serving as a corporate officer or director without prior approval.
