The Story Of A Failed Startup And A Founder Driven To Suicide

71–72 of 72 posts

Re: The Story Of A Failed Startup And A Founder Driven To Suicide

#71

Post by ahoyhere » Sat, Apr 06, 2013, 9:44 PM UTC

adhd wrote: post #23

johnpowell wrote: post #10

If true.. >One childhood friend recalled a time when Sherman committed insurance fraud. He described driving on a highway with Sherman when they were 16. Suddenly, Sherman told his friend to "buckle up." He slammed on the brakes and caused an accident. Later, the friend says, Sherman would collect thousands of dollars from insurance companies for the self-inflicted injuries. Fuck the dude.

The original story was told by his best friend at Jody's memorial, in a lighthearted way. And it happened when he was a teenager. I'm a little shocked that the writer used this as evidence of fraud. Of course, the same friend told a story about Jody giving boxes and boxes of clothing to homeless people during Christmas. Yet this tale didn't make the cut.

"Remember that time our friend committed insurance fraud and endangered our lives and the lives of innocent strangers, deliberately injuring himself and possibly other people for the money? WHAT A LAUGH!"

I don't get it. How can you tell that story in a lighthearted way? It's reckless endangerment at best.

Re: The Story Of A Failed Startup And A Founder Driven To Suicide

#72

Post by tyang » Mon, Apr 08, 2013, 12:42 AM UTC

beachstartup wrote: post #57

hncommenter13 wrote: post #17

I didn't know Jody, so I won't comment on him personally. Speaking as a former investor regarding the financial situation though...never ever ever ever. Financial controls aren't important just because VCs are greedy: they keep companies alive and keep you out of court (or jail). I've seen situations in which cash didn't quite reconcile to what was expected; in some, the people involved made restitution and were fire…

an attorney advised me at one point that even if you do own 100% of a company, if personal and company finances are intertwined, that could be a large risk to the separate, limited liability status of your company. in other words if you used your company money to pay for personal stuff or vice versa, "they" can come after your personal money if the company can't pay.

Yes, because you can't hide behind the corporate veil of limited liability if you yourself are mixing business with pleasure and other things personal, so to speak.

So creditors and other stakeholders are going to be able to pierce the corporate veil, which means you are personally liable. Just like if you were a general partner in a partnership.

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