They probably were using “start up” wrong but there’s no police force hunting down people who lied about being non-accredited investors. You just have to sign a standard form that says you’re an accredited investor and it basically just means you can’t sue anyone if you lose your money.

If a company fails, they might still have some value. In the medical company example I used, maybe they fail Phase III safety trials and don’t get approved. So, they sell all their laptops and beakers or whatever. You don’t get to sue anyone for shenanigans¹ if you lied about being an accredited investor.

¹ Shenanigans is not a legal term but don’t invest in risky start ups with founders you don’t know if you aren’t able to absorb the loss