Thirteen Lune’s Nyakio Grieco Faces Embezzlement and Fraud Allegations

THE WHAT? Nyakio Grieco, co-founder and CEO of beauty retailer Thirteen Lune, is accused of fraud and embezzlement in a civil lawsuit filed in California. The lawsuit claims she used over US$165,000 of company funds for personal expenses, including concert tickets, a family vacation, and cosmetic treatments.

THE DETAILS 

• Thirteen Lune was founded in 2020 to highlight inclusive beauty brands created by Black and Brown entrepreneurs.
• Investor Relevance Ventures, which contributed around US$3 million to the company in May 2024, filed the suit, citing 17 complaints including misappropriation of funds and breach of fiduciary duty.
• Grieco denies responsibility for the disputed charges, stating they were approved by previous management and describing the allegations as “baseless.”
• The lawsuit also claims Thirteen Lune’s net revenue dropped from about US$24 million in 2023 to US$7 million in 2024, leading to an assignment for the benefit of creditors (ABC) and a subsequent acquisition by SNR Capital.
• Relevance Ventures alleges that Grieco and other defendants used the ABC process to eliminate shareholder equity and acquire Thirteen Lune’s assets through a new entity.

THE WHY? Investors allege mismanagement led to severe financial strain and a restructuring that disregarded existing stakeholders. The dispute centers on how funds were handled and how the business was sold, raising broader questions about corporate governance in a segment of the beauty market focused on inclusive brands.

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