Hacker News Reader

> Although investors should be doing more diligence than is currently in fashion, this issue is on the founders to fix.

What incentive do founders have to "fix" this when investors aren't doing adequate due diligence?

The fact that they can be prosecuted for it.

How many Silicon Valley startup founders have faced felony charges for making financial misrepresentations in recent years?

If you're choosing between "should I commit a felony or not" should it matter how often other are charged with it? What happens if law enforcement suddenly becomes more interested?

Have you considered the possibility that founders aren't being charged with felonies left and right because they're not committing felonies left and right?

Current bubble? I believe the answer is zero. Last bubble? I believe the answer is nonzero.

The nuance is that the SEC prosecutes under the civil code by default.

https://www.sec.gov/News/Article/Detail/Article/135612578701...

Its a felony which means that little employment checkbox that asks if you were ever a felon? Yeah, that'd be the one you'll be checking from now on.

Reply on news.ycombinator.com