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Report: Cops raid failed drone startup on suspicions of fraudulent advertising

If going out of business and having to hand back $34 million in preorder funds wasn’t bad enough for the once-hot drone startup Lily Robotics, a Forbes report today about a raid by police investigating alleged fraud suggests things have gotten plenty worse. 

According to the Forbes story, which cited an anonymous source, law enforcement raided Lily’s offices earlier this month after the San Francisco District Attorney’s office alleged that the company had faked a promo video touting its many high-tech capabilities, including “follow-me” features that supposedly allowed it to automatically circle around a subject. The authorities are alleging that the video was faked, and Forbes quotes an email from Lily’s CEO to the maker of the video as saying that, “I am worried that a lens geek could study our images up close and detect the unique GoPro lens footprint….But I am just speculating here: I don’t know much about lenses but I think we should be extremely careful if we decide to lie publicly.” Forbes said Lily would not comment on rumors and the company did not immediately respond to a Fast Company request for comment. 

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