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A comment on CEO of Cyber Fraud Startup NS8 Arrested by FBI, Facing Fraud Charges. Parent comment

Re:CEO of Cyber Fraud Startup NS8 Arrested by FBI, Facing Fr... by billyhoffman on Friday September 18, 2020 @12:57PM (#24519136)
Obviously something terribly shady is going on here. I’m not disagreeing with you, I just don’t understand how any director level position, let alone an executive, wouldn’t be able to see serious irregularities if such a significant percentage of revenue was phony. There are just way too many knock-on effects when the overwhelming majority of your customers aren’t real, aren’t paying you, and aren’t putting any load or impact on any of your other systems (technical or otherwise). That is some bullshit clown shoes management across the entire company right there

And the CEO or others saying “oh yeah you can’t see all those customers and growth because they’re in this old legacy system that doesn’t report it” is an insane excuse to buy. Holy shit you mean to tell us that the majority of our most important revenue is coming from a legacy systems that we have zero insight into? And it’s continuing to grow? Why aren’t those people on the new system?

> “customer revenue” account controlled solely by the CEO

I cannot fathom a VP of Finance, let alone an outside accounting firm, that would be OK with this arrangement of accounts.

Edit: To be clear I’m not trying to blame the victims. This is a terrible loss to all the employees who have been pouring so much of their efforts into the company. I just am having a hard time understanding how such a thing could happen. Maybe I’ve just been blessed to work in extremely transparent organizations.

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Re:CEO of Cyber Fraud Startup NS8 Arrested by FBI, Facing Fr... by squashua667 on Friday September 18, 2020 @01:02PM (#24519198)
>> “customer revenue” account controlled solely by the CEO

> I cannot fathom a VP of Finance, let alone an outside accounting firm, that would be OK with this arrangement of accounts.

Right? Then again, EY audited everything and gave those fake bank statements the "thumbs up" as part of the last round of funding and due diligence on the part of the investors. Crazy.

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Re:CEO of Cyber Fraud Startup NS8 Arrested by FBI, Facing Fr... by toomuchtodo on Friday September 18, 2020 @01:25PM (#24519484)
Wasn't EY also the firm who audited Wirecard? Why is anyone taking their audits seriously?

https://markets.businessinsider.com/news/stocks/ey-chairman-...

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Re:CEO of Cyber Fraud Startup NS8 Arrested by FBI, Facing Fr... by ev1 on Friday September 18, 2020 @02:36PM (#24520339)
EY were also the ones that audited and passed WoSign and StartCom SSL CA's that were fraudulently issuing bad certs and violating CAB regulations.
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Re:CEO of Cyber Fraud Startup NS8 Arrested by FBI, Facing Fr... by tluyben2 on Saturday September 19, 2020 @03:47AM (#24525895)
When I was a young and naive c-level exec (CTO), the CEO of the company was lying about the numbers to investors and everyone else, but neither me or the coo noticed as we thought it was not our concern; we were doing our jobs which was not finance. While the judge gave us a slap on the wrist only when the company suddenly turned out to have no money, he said it was definitely part of our job to at least validate the numbers. But I know enough people now who will say it is not their job and if the ceo signed off, it is enough for them. So I can see it happen. We had clients (big ones) and we were just not privy, nor interested to be fair, to the contract size. The changes were things like 800k$ product sale heightened to 1.8m etc which was not really unlikely to us or investors. We should have checked...
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Re:CEO of Cyber Fraud Startup NS8 Arrested by FBI, Facing Fr... by pstoica on Friday September 18, 2020 @01:03PM (#24519207)
We can't fathom it either!
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