31–40 of 90 posts
Earlier quoted context omitted.
Article is about the whistleblower/commenter above. https://www.bloomberg.com/news/articles/2017-05-09/he-blew-t...
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http://webcache.googleusercontent.com/search?q=cache:eaNgmTP...
"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…
I'm not an expert on this topic, but if a limited partner agrees to something like "2 and 20" fees doesn't that imply that the other 98% of the money is to be invested and not used for expenses? 2% management fee on $64M assets is only $1.2M which is pretty small considering the size of staff they had.
It's less bad if the investors agreed to high fees, but it could still be embezzlement if the money was spent on personal stuff.
Earlier quoted context omitted.
> government's monopoly on violence Can I get a source on this?
that is the accepted definition of State. a State can arm a faction (police, army, etc), and have the freedom to decide how to use it (removing you from some place, keeping you at another place, invading another State, etc). a corporation and citizens can't. hence a monopoly on violence.
The United States is that exception, because our constitution explicitly recognizes, not grants, our right to arm ourselves independently of the State (or States really), only with some regulation permitted.
The actual definition of State can easily be found in the dictionary: "a nation or territory considered as an organized political community under one government."
Earlier quoted context omitted.
Article is about the whistleblower/commenter above. https://www.bloomberg.com/news/articles/2017-05-09/he-blew-t...
Available only for users with terminal access.
I'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?
Stay tuned. This may not be over yet.
(A good comparison is the Fyre Festival, which led to both civil and criminal charges: https://www.cbsnews.com/news/fyre-festival-founder-billy-mcf... . )
Edit: Theranos was another where the SEC acted first, then the criminal case came next. https://www.vox.com/2018/6/15/17469332/theranos-elizabeth-ho...
7 million sounds like a drop to settle for, plus likely a small fine.
How much does that cost?
Earlier quoted context omitted.
> 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 o…
If you make invoices that say you've ordered soda for the programmers, but there are no deliveries of soda because the money for sodas went to your overseas numbered account, that's illegal.
I'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?
The SEC only has authority to levy civil fines. They issue a fine, and then hand the case over to the US Attorney's Office (and often state attorney generals' offices), which then build a criminal case. Stay tuned. This may not be over yet. (A good comparison is the Fyre Festival, which led to both civil and criminal charges: https://www.cbsnews.com/news/fyre-festival-founder-billy-mcf... . ) Edit: Theranos was anoth…
For example, SEC investigated Bernie Madoff multiple times, but the it was the FBI that decided to act, based on a criminal complaint.
Sentence: 150 years.
Earlier quoted context omitted.
> 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 o…
(Example: Enron)