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Star of “Startup.com” Charged with Accounting Fraud

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Re: Star of “Startup.com” Charged with Accounting Fraud

#21
post #18

Have you seen the movie? There is ZERO evidence in the movie that either Kaleil or his co-founder Tom are talented or successful. They're certainly, as mikek says in his comment at https://news.ycombinator.com/item?id=10547832 , "driven"! But that's why they were seeking success by dishonest means in the first place. As IMDB says: > The process of building the business focuses on obtaining venture capital based solel…

The problem is that some of the stories of great success are actually quite close to the ones that are outright scams. It's harder to tell the difference than it probably should be. Around the 2000's there were a number of acquisitions of companies that were mostly hot air. It's a game of hot potato (don't pick it up!), if the investors make bank on your BS company then nobody will complain (except for the acquiring…

Oh, yeah, I worked at a startup at the same time whose founders were super brilliant technical people. We went to go see the movie when it came out (we'd all left the company by that point IIRC), and we recognized a lot of common experiences with what we saw on the screen.

I don't know about Groupon. Group buys have been very successful in China but I have the sense that Groupon has institutionally evaded the accountability to its product buyers that is required to make a group buy into a net-positive interaction, let alone a win-win.

(Amusing sidenote: in Groupon's heyday I met a US spy (who of course didn't admit she was a spy) here in Argentina whose cover story was that she was coming here to open up a local presence for a more exclusive Groupon-like company called Theliste, which turned out not to exist. We had a good time at dinner talking about Arabic grammar and morphology, which she had been studying at a language school in Monterey, California; her boyfriend and my wife were unfortunately a bit left behind by the conversation.)

Pumping money around can contribute and create value — consider Bitcoin, where the question is not whether Bitcoin creates value, which it clearly does, but rather whether its potential to destroy civilization (through prediction markets and tax evasion) is more or less significant than the value that it creates.

Also, there are plenty of great successes that are outright scams. The British East India Company, for example, or the Congo Free State, or the police department of Ferguson, MO, or Bernard L. Madoff Investment Securities LLC, or the Treaty of Guadalupe Hidalgo, or the divine right of kings, or the sale of indulgences. Heck, we could even include those guys who robbed me on the train a couple years back.

Re: Star of “Startup.com” Charged with Accounting Fraud

#22
post #7

Watched the film in 2001, still waiting for USPS to start scanning my PO Box mail and email it to me. Actually, they don't have to go that far. I'd take a simple email notifying me that I HAVE mail in my PO Box, and maybe who it's from. Would save me a trip a week probably.

I think you're thinking of the wrong thing. govWorks was more of a digitization of traffic ticket payment/appeal, property registration, and other minor government admin processes. You must be thinking of Startup Junkies, which was a series on MoJo - a former/original HD channel.

Re: Star of “Startup.com” Charged with Accounting Fraud

#23
post #21

Earlier quoted context omitted.

The problem is that some of the stories of great success are actually quite close to the ones that are outright scams. It's harder to tell the difference than it probably should be. Around the 2000's there were a number of acquisitions of companies that were mostly hot air. It's a game of hot potato (don't pick it up!), if the investors make bank on your BS company then nobody will complain (except for the acquiring…

Oh, yeah, I worked at a startup at the same time whose founders were super brilliant technical people. We went to go see the movie when it came out (we'd all left the company by that point IIRC), and we recognized a lot of common experiences with what we saw on the screen. I don't know about Groupon. Group buys have been very successful in China but I have the sense that Groupon has institutionally evaded the account…

Why did a spy tell you she was a spy?

Re: Star of “Startup.com” Charged with Accounting Fraud

#24
post #21

Earlier quoted context omitted.

The problem is that some of the stories of great success are actually quite close to the ones that are outright scams. It's harder to tell the difference than it probably should be. Around the 2000's there were a number of acquisitions of companies that were mostly hot air. It's a game of hot potato (don't pick it up!), if the investors make bank on your BS company then nobody will complain (except for the acquiring…

Oh, yeah, I worked at a startup at the same time whose founders were super brilliant technical people. We went to go see the movie when it came out (we'd all left the company by that point IIRC), and we recognized a lot of common experiences with what we saw on the screen. I don't know about Groupon. Group buys have been very successful in China but I have the sense that Groupon has institutionally evaded the account…

You think the only possible reason for a woman to lie to you is because she is a spy?

Re: Star of “Startup.com” Charged with Accounting Fraud

#25
post #21

Earlier quoted context omitted.

Oh, yeah, I worked at a startup at the same time whose founders were super brilliant technical people. We went to go see the movie when it came out (we'd all left the company by that point IIRC), and we recognized a lot of common experiences with what we saw on the screen. I don't know about Groupon. Group buys have been very successful in China but I have the sense that Groupon has institutionally evaded the account…

Why did a spy tell you she was a spy?

kragen said she never said she was; he's inferring.

Re: Star of “Startup.com” Charged with Accounting Fraud

#26
I worked at ROO Media (which KIT Digital acquired) and met with Kaleil a number of times. None of us who worked there are even remotely surprised. No signs of revenue, yet we would spend like crazy and even acquire companies with magical "stock money".

It was the most corrupt place I have ever worked in my life. The COO was a ghost who just spent money (like staying at hotels all the time, even though he lived an hour away by train) making 400K+ at a startup with no revenue, the CEO (who Kaleil replaced) drove the company into the ground and subsequently started another startup that is now under lawsuit as well after lying to his employees and not paying them for months. Absolutely crazy stories.

Happy to answer any questions :)

Re: Star of “Startup.com” Charged with Accounting Fraud

#27
post #26

I worked at ROO Media (which KIT Digital acquired) and met with Kaleil a number of times. None of us who worked there are even remotely surprised. No signs of revenue, yet we would spend like crazy and even acquire companies with magical "stock money". It was the most corrupt place I have ever worked in my life. The COO was a ghost who just spent money (like staying at hotels all the time, even though he lived an hou…

Why did you keep working there?

Re: Star of “Startup.com” Charged with Accounting Fraud

#28
post #21

Earlier quoted context omitted.

Oh, yeah, I worked at a startup at the same time whose founders were super brilliant technical people. We went to go see the movie when it came out (we'd all left the company by that point IIRC), and we recognized a lot of common experiences with what we saw on the screen. I don't know about Groupon. Group buys have been very successful in China but I have the sense that Groupon has institutionally evaded the account…

Why did a spy tell you she was a spy?

The fact she went to a language school in Monterey is a good hint as to her background at least.

https://en.wikipedia.org/wiki/Defense_Language_Institute

Re: Star of “Startup.com” Charged with Accounting Fraud

#29
post #26

I worked at ROO Media (which KIT Digital acquired) and met with Kaleil a number of times. None of us who worked there are even remotely surprised. No signs of revenue, yet we would spend like crazy and even acquire companies with magical "stock money". It was the most corrupt place I have ever worked in my life. The COO was a ghost who just spent money (like staying at hotels all the time, even though he lived an hou…

Why did you keep working there?

I worked with some great people, and we all had hope we can jointly help turn things around. Obviously , we were wrong.

In retrospect, we should have went to the board like we discussed and tried to salvage the company which could have had a decent product, were it not for the constant corruption and idiotic decision making.

Re: Star of “Startup.com” Charged with Accounting Fraud

#30
Wasn't that the movie with the scene where the founders are presented with deal terms and given X hours to decide and they think they can't consult with any outside people (attorneys, etc) during that time?

Does that ever really happen? My instant answer would be "No" if I was seriously given that restriction.

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