RocketStar CEO Christopher Craddock accused of misusing investor funds

In the United States, Christopher Craddock, the CEO of RocketStar, a New York-based aerospace startup, faces severe allegations of financial misconduct involving investor funds. Established in 2014, RocketStar aimed to develop innovative rocket thrusters and had secured a contract with the U.S. Space Force. However, revelations have emerged that Craddock allegedly misappropriated these funds for personal expenses, including expensive trips to Europe, jewelry for his wife, and even payments for international escort services to join him in Miami. The company, originally perceived as a promising venture in space exploration, is now engulfed in controversy. Craddock's accusations came to light following a $6 million lawsuit filed by former CEO Michael Mojtahedi in mid-2024. In the lawsuit, Mojtahedi described the operation as a Ponzi scheme, claiming Craddock's behavior had led to the financial ruin of RocketStar by August 2024. According to the complaint, Craddock raised funds from new investors each time the company faced financial difficulties, all while spending lavishly on personal luxuries rather than furthering the company's development and innovation in aerospace technology. Additional allegations included using company funds to cover personal debts and expenses for others. A Florida executive allegedly charged significant expenses to a company American Express card for family dental bills, while Craddock purportedly paid for lavish meals and romantic trips for himself and others using investor money. The financial mismanagement ultimately resulted in RocketStar’s bank account reflecting a negative balance of over $4,100 by June 28, 2024. As a result of these allegations, the board of directors removed Craddock as CEO and instituted an internal investigation into the company's finances. While Craddock’s attorney maintains that RocketStar will vindicate itself in court, the company's reputation is severely damaged, and it faces legal challenges in light of these accusations. The fallout from this controversy highlights the necessity for oversight and transparency in investment ventures, especially in high-stakes industries like aerospace.