
CEO lies, commits fraud, and the startup craters - burgessct
http://www.csoonline.com/article/3200147/security/ceo-lies-commits-fraud-and-yes-the-startup-craters.html
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tdumitrescu
Discussion of the original post when this first happened:
[https://news.ycombinator.com/item?id=12379518](https://news.ycombinator.com/item?id=12379518)

And quick followup after the story blew up:
[https://news.ycombinator.com/item?id=12394679](https://news.ycombinator.com/item?id=12394679)

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vkou
From the article, it seems that he's only been indicted for wire fraud. What
would a likely outcome be? The statute caps sentencing at 20 years, but being
a first-time offender, I doubt he will see anything of the sort.

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burgessct
You are correct. The alleged Federal Crime he committed was forging the wire
transfers.

If he pleads out, I imagine he will be given a much reduced sentence and given
his erasure of his online presence, it begs the question ... what's next?

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sillysaurus3
It's slightly scary how much power blogging has. This is an example of a
single blog post effectively killing a startup.

You can't quite reduce it to those terms, since without the misdeeds, nobody
could've written a blog post that killed the company. But you have to admit,
it's very different from the old days.

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leroy_masochist
> This is an example of a single blog post effectively killing a startup.

To be fair, the blog post in question _provided detailed allegations of the
CEO committing multiple felonies_.

