There's also https://news.ycombinator.com/item?id=17804063, which has a bit more background info.
SEC Charges Rothenberg Ventures in Fraudulent Scheme
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Re: SEC Charges Rothenberg Ventures in Fraudulent Scheme
#227 million sounds like a drop to settle for, plus likely a small fine.
yeah I've pretty much given up on the justice system. if you have money regardless of how you obtained it, the law always favor those with capital for the most part. Unless you try to fight back against government's monopoly on violence....drug traffiking being a major competition, it makes sense why harsh sentences are handed out for drug dealers while white collar criminals that inflict damage to millions of people…
> yeah I've pretty much given up on the justice system.
I just hate this mentality. Listen, I know things have been rough and defeatism is a natural way to feel in that context. But "giving up" is one of the ways things end up like this. Don't give up. Fight for justice.
Re: SEC Charges Rothenberg Ventures in Fraudulent Scheme
#23Earlier quoted context omitted.
Out of curiosity, would you do it again? Has there been any damage to your professional life?
Article is about the whistleblower/commenter above. https://www.bloomberg.com/news/articles/2017-05-09/he-blew-t...
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Re: SEC Charges Rothenberg Ventures in Fraudulent Scheme
#247 million sounds like a drop to settle for, plus likely a small fine.
Read The Chickenshit Club. Basically, after Enron and Arthur Anderson, Congress and the Courts worked to neuter the ability of the SEC and the DoJ to really punish these guys. Combine that with people in those offices not wanting to go too hard, lest they not be able to get jobs with the very law firms they're going against after, and you have a recipe for government not really caring about what business is doing.
Re: SEC Charges Rothenberg Ventures in Fraudulent Scheme
#25I wonder if this precocious racket will pay out over Rothenberg's lifetime vs. just banking his pedigree and network on some boring low risk career track. He's currently ahead a few million but his reputation is toast.
Re: SEC Charges Rothenberg Ventures in Fraudulent Scheme
#26"Without admitting or denying the allegations in the SEC’s complaint, Rothenberg and Rothenberg Ventures agreed to settle the charges. The settlement is subject to approval by the federal district court for the Northern District of California which would determine the amount of disgorgement and civil money penalties. Rothenberg also agreed to be barred from the brokerage and investment advisory business with a right…
What does "dick move" mean to you, in this context?
Re: SEC Charges Rothenberg Ventures in Fraudulent Scheme
#27I think if you steal millions of dollars you should go to prison. And a fraud like this should have the same type of punishment as other types of theft.
Re: SEC Charges Rothenberg Ventures in Fraudulent Scheme
#28I went to Founders Field day in 2016, and I have to say from the vibe of that event this doesn't surprise me at all. It was literally like being in an episode of Silicon Valley.
I do worry what this means for their incubator program though. They've been one of the few funds willing to throw a lot of dumb money at VR projects that just sound cool, and I'm all for that.
Re: SEC Charges Rothenberg Ventures in Fraudulent Scheme
#29"Without admitting or denying the allegations in the SEC’s complaint, Rothenberg and Rothenberg Ventures agreed to settle the charges. The settlement is subject to approval by the federal district court for the Northern District of California which would determine the amount of disgorgement and civil money penalties. Rothenberg also agreed to be barred from the brokerage and investment advisory business with a right…
> Besides blowing investors' money on lavish staff events, which is a dick move but not necessarily illegal Can you talk a bit about where the line is between this being merely unethical as opposed to outright illegal?
If you're in charge of the company, you can authorize expenditures for anything that reasonably relates to the company's business, including attracting investors, retaining employees, or incenting them to succeed. It's reckless to spend all your money on parties, but not illegal.
But if you authorize the company to spend money on something which is in itself illegal (cocaine or weed for the parties, hookers instead of strippers), that's illegal. And if you effectively direct the money to your own benefit (pay for your house's landscaping, new pool, pet grooming bill) that's not legal (among other things, it counts as taxable income and I bet you forget to pay on that).
Re: SEC Charges Rothenberg Ventures in Fraudulent Scheme
#30I'm curious to know:
- Does the firm and/or the individual have enough money? i.e. will the settlement, once paid, make investors whole?
- Why does stealing $7 three times get someone a life sentence, but stealing $7MM once get zero jail time?