SEC charges YouPlus and CEO with defrauding investors
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Re: SEC charges YouPlus and CEO with defrauding investors
#2> According to the complaint, Shamim falsely told investors that YouPlus earned millions of dollars in annual revenue and had more than 100 customers, including Fortune 500 companies. When one investor pressed Shamim for information substantiating those claims, Shamim allegedly provided the investor with falsified bank statements in an effort to conceal the fraud. The scheme allegedly unraveled in late 2019 when Shamim confessed to certain investors that YouPlus had in fact earned less than $500,000 and obtained only four paying customers from the company’s inception in 2013.
Seems to be just regular run-of-the-mill fraud.
Fake it till you make it is something to direct at your customers, or at your product's implementation, not at people who are giving you their money, who are protected by the SEC.
I assume that the firm will never be able to make a positive return for its investors, which is why they invoked the nuclear option.
Re: SEC charges YouPlus and CEO with defrauding investors
#3The glassdoor reviews are fun:
> Advice to potential investors and partners - check all numbers from CEO - it’s easy and you will be surprised.
> Facts about Youplus:
> - 4+years old - has no users and never had traction in both USA and India - change of direction every 2-4 weeks - no one cares about results
> CEO has a lot of energy and love to pitch whatever in his head to everyone in the office for hours in endless meetings. What he completely lacks is a solid vision, execution and just a common sense. His ego is tremendous — he despises other people’s opinions and if he asks for your opinion the only expected answer is “Awesome!”.
> Youplus is a toxic place to be for everyone with a self-respect.
(from October 2018)
> First of all they do not pay on time
> You can get fired in a second because they don't need you anymore
> Promises are not kept most of the time
(from Jun 2017)
Re: SEC charges YouPlus and CEO with defrauding investors
#4> According to the complaint, Shamim falsely told investors that YouPlus earned millions of dollars in annual revenue and had more than 100 customers, including Fortune 500 companies. When one investor pressed Shamim for information substantiating those claims, Shamim allegedly provided the investor with falsified bank statements in an effort to conceal the fraud. The scheme allegedly unraveled in late 2019 when Sham…
> Seems to be just regular run-of-the-mill fraud.
I’m surprised the DOJ hasn’t charged them with a crime yet. The money the SEC is seeking has to be long gone right?
Re: SEC charges YouPlus and CEO with defrauding investors
#5> According to the complaint, Shamim falsely told investors that YouPlus earned millions of dollars in annual revenue and had more than 100 customers, including Fortune 500 companies. When one investor pressed Shamim for information substantiating those claims, Shamim allegedly provided the investor with falsified bank statements in an effort to conceal the fraud. The scheme allegedly unraveled in late 2019 when Sham…
> Seems to be just regular run-of-the-mill fraud. I’m surprised the DOJ hasn’t charged them with a crime yet. The money the SEC is seeking has to be long gone right?
> I’m surprised the DOJ hasn’t charged them with a crime yet.
When both civil SEC charges and criminal charges by DOJ emerge out of the same act, the former is often well ahead of the latter, so, when civil charges are filed without concurrent criminal charges, one shouldn’t read too much in to it.
Though, as a reply points out, that separation does not actually apply in this case.
EDIT: corrected error of ordering pointed out in a reply, and expanded somewhat for clarity of intent.
Re: SEC charges YouPlus and CEO with defrauding investors
#6The glassdoor reviews are fun: > Advice to potential investors and partners - check all numbers from CEO - it’s easy and you will be surprised. > Facts about Youplus: > - 4+years old - has no users and never had traction in both USA and India - change of direction every 2-4 weeks - no one cares about results > CEO has a lot of energy and love to pitch whatever in his head to everyone in the office for hours in endles…
CEO honestly sounds like my ex-boss. He would literally waste hours of our time on useless pitches and expect us to clap at the end.
Re: SEC charges YouPlus and CEO with defrauding investors
#7Earlier quoted context omitted.
> Seems to be just regular run-of-the-mill fraud. I’m surprised the DOJ hasn’t charged them with a crime yet. The money the SEC is seeking has to be long gone right?
> I’m surprised the DOJ hasn’t charged them with a crime yet. When both civil SEC charges and criminal charges by DOJ emerge out of the same act, the former is often well ahead of the latter, so, when civil charges are filed without concurrent criminal charges, one shouldn’t read too much in to it. Though, as a reply points out, that separation does not actually apply in this case. EDIT: corrected error of ordering p…
So, since DOJ criminal charges awe usually well ahead of SEC civil charges, that means we probably won't see them? Or did you mix up some of the ordering there (as the wording makes it look like maybe you were trying to say we might see DOJ charges eventually because they take longer).
Re: SEC charges YouPlus and CEO with defrauding investors
#8The glassdoor reviews are fun: > Advice to potential investors and partners - check all numbers from CEO - it’s easy and you will be surprised. > Facts about Youplus: > - 4+years old - has no users and never had traction in both USA and India - change of direction every 2-4 weeks - no one cares about results > CEO has a lot of energy and love to pitch whatever in his head to everyone in the office for hours in endles…
CEO honestly sounds like my ex-boss. He would literally waste hours of our time on useless pitches and expect us to clap at the end.
Like basically trying to do a Steve Jobs new product announcement internally before the products were developed?
Re: SEC charges YouPlus and CEO with defrauding investors
#9Earlier quoted context omitted.
> Seems to be just regular run-of-the-mill fraud. I’m surprised the DOJ hasn’t charged them with a crime yet. The money the SEC is seeking has to be long gone right?
> I’m surprised the DOJ hasn’t charged them with a crime yet. When both civil SEC charges and criminal charges by DOJ emerge out of the same act, the former is often well ahead of the latter, so, when civil charges are filed without concurrent criminal charges, one shouldn’t read too much in to it. Though, as a reply points out, that separation does not actually apply in this case. EDIT: corrected error of ordering p…
From the article
> In a parallel action, the U.S. Attorney’s Office for the Northern District of California today announced criminal charges against Shamim.
Re: SEC charges YouPlus and CEO with defrauding investors
#10Earlier quoted context omitted.
CEO honestly sounds like my ex-boss. He would literally waste hours of our time on useless pitches and expect us to clap at the end.
Like basically trying to do a Steve Jobs new product announcement internally before the products were developed?
Pretty much. I think the main issue with people like this is that their product visions keep on changing. So it becomes almost impossible for the tech team to execute properly.