LifeBrand Sells for $75,000 as Investors Allege CEO Misused $27 Million

1 articles · Updated · The Philadelphia Inquirer · Jun 16

$75,000 is all Sentiment AI paid in August 2024 for LifeBrand, an AI startup once valued at $137 million after raising more than $27 million.
Investors allege founder T.J. Colaiezzi burned cash on a $16 million stadium marketing push, hired friends at inflated salaries, and took a $6.17 million stock payout while revenue lagged.
Court filings show the Eagles, Phillies and Sixers say LifeBrand still owes them $6.2 million, while some former employees remain unpaid after layoffs and the company's collapse.
Federal scrutiny is building: the SEC questioned at least one investor in March, and two lawsuits accuse Colaiezzi, Mid Penn Bank and broker Anthony Falco of helping mislead backers.
Colaiezzi denies fraud, calling the payout lawful and the lawsuits a fight over remaining assets, even as he says he has already raised $50,000 for a new AI venture.