Convicted VC ‘Party Animal’ Complains Juror Slept at His Trial

Rachel Graf, Bloomberg News

(Bloomberg) -- Mike Rothenberg, the venture capitalist known for throwing extravagant Silicon Valley parties, says he should get a new trial after being convicted of defrauding investors because one of the jurors dozed during testimony.

Rothenberg was found guilty in November of fraud and money laundering for misappropriating almost $19 million to fund his own virtual reality company and secure a line of credit from Silicon Valley Bank.

He claims in a court filing that a juror nodded off during “essential portions” of his trial — including Rothenberg’s own testimony. At a hearing set for Friday, he’s also arguing that Covid rules requiring him to wear a mask while witnesses were testifying against him violated his constitutional right “to be confronted” with his accusers.

Prosecutors countered that no juror actually fell asleep, though one “exhibited signs of sleepiness (i.e., the juror’s eyes were closed)” during “uncontested testimony.” The judge “took immediate action” and gave jurors stretch breaks to make sure they stayed attentive, according to the government’s filing.

As to Rothenberg’s argument about a mask, prosecutors said none of the witnesses or questioning lawyers wore masks during testimony and that Rothenberg himself didn’t have a right to be mask-free when he wasn’t on the stand.

Rothenberg is set to be sentenced in May and faces a potentially substantial prison term and fines. If he’s granted a new trial, it would be his third. His first trial on separate bank fraud claims ended in a mistrial in 2022 after jurors failed to reach a verdict.

Dubbed “the Valley’s Party Animal” in 2015, Rothenberg served as inspiration for the HBO show Silicon Valley. Events staged by his firm included wine tours in Napa, luxury boxes at Golden State Warriors games and a special day for startup founders at the San Francisco Giants’ stadium.

In 2018 he settled claims brought by the US Securities and Exchange Commission accusing him of overcharging investors to fund his own businesses and private parties.

The case is US v. Rothenberg, 20-cr-00266, US District Court, Northern District of California (Oakland).