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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

#291

Post by AngryData »

MyOutfitIsVague wrote: post #257
realitysballs wrote: post #249

Earlier quoted context omitted.

Agreed, hot take, but she defrauded a large corporate bank , big whoop if you ask me.

I'm not sure I like the incentives that creates, though. If this is the precedent, then if you're committing financial fraud already you might as well go as big as possible, since there appears to be a cap on punishment.

I mean from mine, and im sure many other people's view, that is already mostly true. Her biggest mistake to me seems like messing with a big dog, rather than screwing over little guys that don't have millions to throw at the courts or teams of full time lawyers. If JPMorgan defrauded the same amount of money from a bunch of regular joes I doubt anybody would be in jail or even that any potential fees would come anywhere to matching the amount of money defrauded.

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

#292

Post by royletron »

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…

The hardest bit of that Camp Bryan wiki is this disparity.

Ruby Jane McMillan - part of a meth supply ring. Sentenced to 38 months, completed less than 2 years.

Laurel Yurchick - had 50g of meth on her. Sentenced with intent to supply to 10years - not due for parole until 2029.

So one was clearly higher in the supply chain yet got sentenced to a third of the time?

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

#293

Post by komali2 »

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?

Anti fraud rules sending people to jail are what we're discussing, and the proposition that they're necessary for a high functioning society. If we have these rules, and society is not high functioning, then, it seems you and I agree, that they're not necessary for a high functioning society.

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

#294

Post by tpoacher »

> Javice was among a number of young tech executives who vaulted to fame with supposedly disruptive or transformative companies, only to see them collapse amid questions about whether they had engaged in puffery [...]

I'm assuming the key punisher here is the "collapse" rather than the "puffery". I don't think I've seen an "honest", "unpuffed" company since the 90s when companies were still wishing their customers merry christmas over the radio.

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

#295

Post by saalweachter »

ozim wrote: post #170
paxys wrote: post #130

Earlier quoted context omitted.

Uber drivers need a TLC license in NYC and fall under the same regulations.

Was this true from the very start of Uber in NYC?

Has the Taxi & Limousine Commission always regulated limo services in NYC? Yes, since it replaced the Hack Bureau fifty years ago.

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

#296

Post by seanhunter »

TuringNYC wrote: post #12

>> A prosecutor, Micah Fergenson, though, said JPMorgan “didn’t get a functioning business” in exchange for its investment. “They acquired a crime scene.” I do not understand how an acquisition this big got thru due diligence without noticing all the fake users. Anyone in corporate M&A know if it is normal to spend this much money without inspecting the goods? Seems like the most basic of OLAP queries and two days of…

I've been part of due diligence from both sides of the table both in investment situations and cases of M&A activity. You're not really set up to detect out and out fraud like this. For one thing there might be a limited subset of data you really have access to (eg in this type of situation they may not have been in a position to see all the row level customer records before signing because they were competing for business in those customer segments so it is reasonable to restrict access. You might get aggregate data that looks sane and have to go on that for instance.

Secondly you may not actually have the time needed to check things out properly. There's often deadline pressure where the deal has to complete by a certain date or it triggers break clauses or some other party gets a right of refusal or whatever so often the clock runs out even if you would otherwise be able to do the analysis.

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

#297

Post by black_puppydog »

> “haunted that my failure has transformed something meaningful into something infamous.”

Not a US resident, so this may be off-base, but IIUC this a student loan platform, or rather actually just a better interface to it?

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

#298

Post by brunoarueira »

teraflop wrote: post #124
randycupertino wrote: post #19

My favorite thing about this case is how she bragged to her lead engineer she wouldn't go to prison, "“Don’t worry — I don’t want to end up in an orange jumpsuit" when she was trying to convince the engineer to fabricate their user data. From the complaint: > In particular, CC-1 and JAVICE asked Engineer-1 to supplement a list of Frank’s website visitors with additional data fields containing synthetic data. > Engine…

On top of everything else, Scientist-1 doesn't come off looking too good. He was contracted to make a synthetic dataset, based on a small set of records which were supposedly randomly sampled from a larger original dataset. He didn't really have any way of knowing he was being lied to at that point, or what his work would be used for. But when he invoiced $13k for his services, including a detailed breakdown of what…

To complement this, once when I was earning some money to type documents through computer and print them for many purposes (rent contracts, college homework and others), a woman asked me to fake their printed pregnant exam which was saying that her wasn't pregnant, I rejected, she insisted to print a simple "Yes" and I persisted without a sweat! I was young at the time about 14 years old.

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

#299

Post by nashashmi »

MaxHoppersGhost wrote: post #261
realitysballs wrote: post #249

Earlier quoted context omitted.

Agreed, hot take, but she defrauded a large corporate bank , big whoop if you ask me.

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

Those rules need power to enforce. That power lies with the elites. And elites don’t suffer as much as the small person does.

So high functioning be damned. I want a society that has heart.

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

#300

Post by franktankbank »

KnuthIsGod wrote: post #279

"In 2022, JPMorgan filed a lawsuit for fraud, claiming that the data reported by Frank was largely a fabrication and alleged that Javice paid a data science professor $18,000 for a list of more than four million fake student names to convince JPMorgan to purchase Frank."

How do you pay that much money to get synthetic data? What a racket. I wonder if the professor feels shame for their complicity here.
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