I read it as more blame-shifting to Simon, and since this Simon character doesn't have a voice in this, we can't see the whole picture.
What I learned when I tried to run a startup is that some people just live in their imaginations when they try to run a business. It's easy in software, because, in a way, software is living in one's imagination.
I think the company was more desperate than the article lets on.
The reason I wrote the article is not to say I didn't do anything wrong - obviously we were terribly naive in many aspects of the business and far too trusting. I didn't expect this many people to read it, I thought my friends would read it locally and be forewarned about getting involved (I only posted it on facebook to my friends). Turns out it got more attention
Actions louder than words, etc. After reading this, there's no question that they're shifting a lot of the blame to Simon, but to me this action also shows they're aware of their own culpability in allowing it to get to that point.
The problem: Reframed did the due diligence after talking to Simon and seeking additional investment.
It's also not clear if Reframed ever provided any real value, but it's clear they we're willing to take real money and assign themselves a $4M valuation. That might not be a sham straightaway, but it's probably one in the making--good intentions aside.
Your investors will rightfully blame you if you get them scammed. You're expected to be competent enough to protect them because that's part of your job as "The Management".
Thank goodness the deal stopped dead in its tracks before more people got hurt.