Outdoor Voices founder Ty Haney accused of defrauding investors in $3M energy drink deal

Ty Haney the Boulder businesswoman behind the athletic apparel startup Outdoor Voices is being accused of defrauding local investors in her vitality drink brand after they injected million into the fledgling company and reportedly saved it from insolvency Haney launched Outdoor Voices in A startup darling it raised million and was valued at million in Then it imploded forcing Haney out in and closing all of its stores A venture capital firm bought it last year and brought Haney back Related Articles Oil and gas company relocating Denver office from Upper Downtown to LoDo Blooma Farms purchases former Welby Gardens site for M hires ex CEO Denver City Council drops special tax district proposal in Cherry Creek Wanna-be buyers of hypercars say Longmont lawyer stole millions weeks free and an Ikon Pass Denver landlords ramp up concessions Meanwhile the entrepreneur has launched other companies Try Your Best a rewards operation for consumers who engage with brands and Joggy vigor drinks The latter was valued at million and had an -store deal with Target by late according to a lawsuit Haney then approached and met with Dustin Simantob of Sinco Inc to help raise the additional capital needed to complete the Target order and to keep Joggy afloat the Oct lawsuit states Haney communicated that Joggy needed to fulfill the Target order Sinco a Boulder-based commitment firm is best known for buying an abandoned elementary school in the s and turning it into the Highland City Club an sole business and social club Sinco s CEO is Sina Simantob an outspoken entrepreneur and Dustin s father Sina Simantob says he met with Haney in January and agreed to make an crisis assets in the fledgling company to help save it including by adding product lines In exchange Sinco was to receive a stake in the company Haney would keep of Joggy other investors would receive and would be set aside for employees Their agreement was verbal at first and then in late February reduced to a term sheet that was nonbinding Simantob acknowledges in the lawsuit that he and others filed last week The businessman says he effectively ran Joggy in the first half of this year raising million in funding fulfilling the Target order hiring a chief operating officer and when Haney objected to that person hiring a second collecting in accounts payable and settling disputes Sinco invested heavily based upon Haney s false representations and false promises that Sinco would share in Joggy s future success according to the lawsuit which recalls Simantob telling a business associate on April that his goal was to see Joggy turn into a billion-dollar company within the next five years and that he was living and breathing Joggy On June Simantob texted Haney a proposal for turning the nonbinding term sheet into a formal written agreement Haney texted back Beautiful according to the lawsuit However the next day Haney emailed a lengthy document proposing to restructure Joggy s agreement with Sinco and increase her percentage of ownership while significantly reducing Sinco s equity from to Sinco and Simantob allege in their complaint When Simantob suggested that he and others at least be allowed to recoup their investments Haney allegedly rejected that idea as well So the investors are suing her and Joggy for securities fraud misrepresentation unjust enrichment breach of contract and more Haney and Joggy intentionally or recklessly engaged in this fraudulent conduct in connection with the offer sale or purchase of a assurance according to their lawsuit filed in Boulder Haney did not answer BusinessDen s emails requesting a response to those accusations The other investors are David Chamberlin of Boulder who reportedly gave Susan Routt of Boulder and a California company that contributed Their lawyers are Rohn Robbins Doug Stevens and Justin Miller at Caplan Earnest in Boulder Read more from our partner BusinessDen Get more business news by signing up for our Market Now newsletter