Ask YC: Ethical Question, possible fraud

Re:Ask YC: Ethical Question, possible fraud by DanielBMarkham on Saturday June 28, 2008 @02:11PM (#230673)

Software is a funny business. I've known guys to run full-page ads for software that didn't even exist yet. The theory goes -- if the orders come in, we'll build it.

Some people are naturally prone to exaggeration. Immaturity comes in to this as well -- once you've been around the block a few times you realize that fake posturing is easy for customers to spot.

If it's not investment related, it's not criminal. I'd have a word with the guy, something along the lines of you can't lie your way into trusting business relationships. After that, I'd make a call as to whether it was worth staying or not. I wouldn't.

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Re:Ask YC: Ethical Question, possible fraud by randallsquared on Saturday June 28, 2008 @04:02PM (#230735)

My fake posturing would be easy for customers to spot, but you hear over and over about multi-million-dollar companies which started as fake posturing, and no one noticed until later, and people rarely care even then.

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Re:Ask YC: Ethical Question, possible fraud by andreyf on Sunday June 29, 2008 @02:24AM (#231029)

I've known guys to run full-page ads for software that didn't even exist yet.

That seems significantly more justifiable than flat-out lying about the company and its customers.

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Re:Ask YC: Ethical Question, possible fraud by ckinnan on Saturday June 28, 2008 @03:23PM (#230716)

If he's putting false claims into written advertising or solicitations he's crossing state and federal "truth-in-advertising" laws.

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