He broke an unwritten, cardinal rule, which is to never steal from the rich.
She
Founder sentenced to seven years in prison for fraudulent sale to JPMorgan
41–50 of 366 posts
Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan
#42Earlier quoted context omitted.
If you spend investor money at a literal casino while advertising a non-casino related business, and pay the investors back, probably people will view you as not committing a crime. If you get investor money or get a loan on the basis of funding logistics investments, bet it on roulette red, and go bankrupt, I would expect you'd be looking at hard jail time for fraud. So I'm thinking the crime would be nothing, becau…
There are lots of examples of people going to jail despite investors getting their money back, like SBF and Shkreli. Even Madoff investors got 94% of their investments back.
Shkreli is the only one of those 3 that fully paid back his investors, and it took him pissing off virtually every politician and a bunch of wealthy insurance executives/administrators to get enough resources mobilized to get a conviction (and being one of the most uncharismatic people on earth, which didn't help him at trial).
I think you are definitely in a much worse place for a fraud conviction if you lose money.
Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan
#43He broke an unwritten, cardinal rule, which is to never steal from the rich.
> He broke an unwritten, cardinal rule, which is to never steal from the rich.
"She".
The name is "Charlie," but it's a young woman.
And, like another young woman, she stole from the rich, and got jailed.
She'll probably get a federal minimum-security prison (no fences and a golf course).
They aren't quite "Camp Cupcake," but they are a far cry from places like Leavenworth (I've known folks that have done time in both).
Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan
#44Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan
#45At an investor event, a desperate journalist was running around the room asking people their age. He ended up at our table, with a drink in hand, and a defeated look on his face. He had given up. We talked a bit, and he asked me, "are you under 30?" I answered "No. But this guy is." I pointed at the 28 year old cofounder of the start up I was part off. Before the evening was over, my colleague made it to the list of…
The people I know who made the 30 under 30 list approached it like a massive campaign they had to win. It was a full-court press to get in front of the right people and their startup's PR releases were all timed to impress for the 30 under 30 during that period.
Maybe times changed since it became more of a running joke. At one point it was a selling point for fundraising that people would compete hard over.
Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan
#46It'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*$175 wired on 1yr cliff, and then the rest over 4 years if some milestones are hit? The whole thing looks weird.
Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan
#47Earlier quoted context omitted.
Not to justify it, but why isn't the founder of UPS (edit: Fedex) in prison? I don't think it was legal to go and literally spend their money at the casino. If you turn a profit no one cares (unless you're Shkreli, don't think his investors lost money, but he pissed off some politicians because he said the quiet parts out loud about how the pharma industry works), if you lose it's fraud. When all the winners are doin…
There is truth to this. She was exposed because JP Morgan ran a marketing campaign that converted extremely poorly. Better purchased data might've prevented significant forensics. The poor due diligence had already been signed off. While she committed fraud, I feel sorry for her because of her naivety. It must've been a sick moment when they asked to examine the data during due diligence. If she'd known that would be…
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.
> Engineer-1 was uncomfortable with the request and stated, in sum and substance, “I don’t want to do anything illegal.” JAVICE and CC-1 claimed to Engineer-1 that it was legal. JAVICE stated to Engineer-1, in sum and substance, “We don’t want to end up in orange jumpsuits.” Engineer-1 declined the request from JAVICE and CC-1.
She's not naive. She was told this was illegal and then did it still. She knew this was fraud.
Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan
#48I 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!
Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan
#49He broke an unwritten, cardinal rule, which is to never steal from the rich.
Believe it or not, smaller fraudsters get prosecuted all the time, too. One of the news reporters I followed on Twitter in my area liked to follow all of the small cases of real estate and business fraud in my area. There were a lot of prosecutions for people who were stealing You just don't hear about them as much because someone going to jail for stealing $60K from a couple families from their church in a fake real estate scheme isn't as exciting as a massive fraud against JP Morgan.
Re: Founder sentenced to seven years in prison for fraudulent sale to JPMorgan
#50Earlier quoted context omitted.
$175M isn’t that big for JPM. It’s only 0.02% of its market cap.
They also have $4.3T in AUM. $175M for them is quite literally pennies to them.
AUM is not theirs to keep; and market cap is a very deceitful metric especially for banks where liabilities dwarf the market cap.