I'm glad to see a little accountability happening, but we've been building up to this for a long time as standards have loosened and money flooded in.

One startup I happened to follow was uBeam; their former VP of engineering had a great blog called Lies, Damn Lies, and Startup PR that tracked what was going on there. Whether or not it was legally fraud is a matter of debate, but it was certainly dodgy: https://liesandstartuppr.blogspot.com/search/label/ubeam

I'd be curious to hear about other startups folks here think were somewhere near the borderline of fraud. There must be a lot of stories out there!