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Founder sentenced to seven years in prison for fraudulent sale to JPMorgan

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Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan

#281

Post by blitzar »

wkoszek wrote: post #46

It's interesting how nobody talks about due-diligence being completely broken. We raised $$$ from many VCs and the DD for some of them was crazy: line item by line item with calls to customers etc. Tech folks were on phone with me and had to explain them stuff step by step, revealing a lot of confidential recipes. Also did this for bigger customers. And the $175M deal.. isn't there an earnout? Like $10M cash now, 1/4…

Bringing the court case and winning it is to demonstrate a lack of professional competence from JP Morgan. The team should be fired for cause.

Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan

#282

Post by cindyllm »

blitzar wrote: post #281
wkoszek wrote: post #46

It's interesting how nobody talks about due-diligence being completely broken. We raised $$$ from many VCs and the DD for some of them was crazy: line item by line item with calls to customers etc. Tech folks were on phone with me and had to explain them stuff step by step, revealing a lot of confidential recipes. Also did this for bigger customers. And the $175M deal.. isn't there an earnout? Like $10M cash now, 1/4…

Bringing the court case and winning it is to demonstrate a lack of professional competence from JP Morgan. The team should be fired for cause.

[dead]

Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan

#283

Post by mi_lk »

code4tee wrote: post #48

I see the string of “30 Under 30” being a statistically valid predictor of future likelihood to go to prison continues. These lists feed on the narcissistic tendencies of grifters who are desperate to get on the list and then tell you about it on LinkedIn. These lists have such a bad reputation these days that legit top folks are asking their PR people to keep the off!

fwiw whoever makes 30 under 30 list also acknowledges it: https://www.forbes.com/sites/forbesunder30team/2023/11/28/ha...

Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan

#284

Post by camillomiller »

The startup world is made up of grifters of all sorts that make up BS all the time. And yet, in the end it’s always the women that get spectacularly sentenced? The only exception I can think of is SBF, but that was a quite different case.

Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan

#285

Post by atombender »

pseudolus wrote: post #203
atombender wrote: post #197

Earlier quoted context omitted.

Reading about Autonomy, it always confused me that Mike Lynch was found guilty of fraud in the UK but exonerated in the US — what's your take on that?

Different burdens of proof. The fraud charges in the US were criminal in nature which required a showing of guilt beyond a reasonable doubt. The fraud in the UK arose in the course of a civil trial with a lower burden of proof (balance of probabilities).

What's the general consensus, do you know? It seems maybe fraud occurred, but was difficult to prove conclusively?

Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan

#286

Post by xnorswap »

dboreham wrote: post #235
ryandrake wrote: post #175

Earlier quoted context omitted.

This is why, as an engineer, it seems futile to make an ethical stand against something. They'll just find someone else to do it. Early in my career I was asked to write code to cheat a benchmark, essentially to make it seem our software performed better than it really did. I agonized over it because I was a junior developer just starting out my career, and eventually got the courage to tell my manager I wouldn't do…

Gaming a benchmark seems pretty small beer to be honest. Usually such things are presented with small print that tips off the customer, who will do their own benchmarks if they are not dumb. Perhaps better to draw the line at things that are potentially illegal or break some obvious fiduciary duty.

> Gaming a benchmark seems pretty small beer to be honest

Not if the benchmark is "What emissions does your diesel engine produce?"

Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan

#287

Post by amelius »

throwaway2037 wrote: post #259
crossroadsguy wrote: post #251

Earlier quoted context omitted.

> a prison camp Is this different from a real/general prison? I mean does it have better facilities, space et cetera?

This is a good question. I did Googling. Here is what I found: From the US Federal Bureau of Prisons: https://www.bop.gov/about/facilities/federal_prisons.jsp > Minimum security institutions, also known as Federal Prison Camps (FPCs), have dormitory housing, a relatively low staff-to-inmate ratio, and limited or no perimeter fencing. These institutions are work- and program-oriented. The Elizabeth Holmes Wiki page sa…

Does the dormitory housing have internet?

If yes, I wouldn't even mind sitting there for a while. Might even start a new company with so much time on my hands.

Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan

#288

Post by iinnPP »

komali2 wrote: post #263
MaxHoppersGhost wrote: post #261

Earlier quoted context omitted.

Strong anti fraud rules (even for massive banks) are a foundational part of a high functioning society.

I'm unconvinced. Banks wield massive political power through their capital, and so get away with highway robbery all the time. 2008 financial crisis comes to mind. It seems to me that the rules are one sided and so it seems this "foundational part" of high functioning society is just guarding the highwaymen with the cityguard, when the swords should be facing the other direction.

Could it be that you're not in a high functioning society, rather than the point being invalid?

Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan

#289

Post by timschmidt »

iinnPP wrote: post #288
komali2 wrote: post #263

Earlier quoted context omitted.

I'm unconvinced. Banks wield massive political power through their capital, and so get away with highway robbery all the time. 2008 financial crisis comes to mind. It seems to me that the rules are one sided and so it seems this "foundational part" of high functioning society is just guarding the highwaymen with the cityguard, when the swords should be facing the other direction.

Could it be that you're not in a high functioning society, rather than the point being invalid?

The banks at the center of the 2008 crisis are largely international. Is your question about the entire western international finance system and all societies comprising it?

Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan

#290

Post by irjustin »

throwaway2037 wrote: post #259
crossroadsguy wrote: post #251

Earlier quoted context omitted.

> a prison camp Is this different from a real/general prison? I mean does it have better facilities, space et cetera?

This is a good question. I did Googling. Here is what I found: From the US Federal Bureau of Prisons: https://www.bop.gov/about/facilities/federal_prisons.jsp > Minimum security institutions, also known as Federal Prison Camps (FPCs), have dormitory housing, a relatively low staff-to-inmate ratio, and limited or no perimeter fencing. These institutions are work- and program-oriented. The Elizabeth Holmes Wiki page sa…

Jeez that place looks better than so many schools even vacation homes. Something's really wrong with this picture.
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