Ask YC: Ethical Question, possible fraud

Re:Ask YC: Ethical Question, possible fraud by ismail on Saturday June 28, 2008 @03:14PM (#230708)

If the company signs the deal based on these claims the founder made, its called misrepresentation and misrepresentation = fraud. So should something screw up, and they want to get out of the contract they can use that as a basis,or even if they dont feel like paying. If they have proof, they will most likely WIN.

Firstly, i have to ask though was this put in writing or just while talking?

Secondly, there is a difference between almost closing a deal(Customer has show interest and you reassure him with the numbers) and the customer hasnt made a choice and you use the lies to convince him. In the second instance it's fraud.

If it were me, i would leave.

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Re:Ask YC: Ethical Question, possible fraud by ismail on Saturday June 28, 2008 @03:17PM (#230710)

let me just clear one thing up Misrepresentation for financial gain = Fraud as an example: I Tell the bank i earn $10,000 when i only earn half that to get a higher loan

or in the case of a company: Reporting higher numbers to investors, reporting high userbases/install bases to convince other customers

Yes its fraud, thats what enron did.

It's a bad sign. And to all the people saying it's ok SHAME ON YOU,

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