

Silicon Valley prodigy arrested by FBI for alleged fraud - SG-
http://mashable.com/2015/05/21/joshua-newman-arrest/?utm_cid=mash-com-fb-tech-link

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ccvannorman
"Newman is said to have lured investors by misrepresenting his own ability to
pay back funds, [...] He then used the funds to pad his own finances or pay
back earlier investors."

What? Why would you pay investors #1 back if you were planning to screw
investors #2? Or was he planning to just take ever bigger gambles?

~~~
caminante
His initial investors were likely complicit or he wanted the relationship to
persist for future deals.

------
caminante
Even if he's innocent, I found his lawyer's statement quirky:

    
    
      "All of his business ventures have been legitimate and well-intentioned. 
      While his ventures were not always as successful as he hoped they would 
      be, he never did anything to justify the over-reaching charges issued against 
      him today.["]
    

I can't envision how this statement helps him.

