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If it can be proven that LendEDU or any other student loan company profited from their statements, this is a picture case of wire fraud. 18 U.S.C. §1343 [1] for

If it can be proven that LendEDU or any other student loan company profited from their statements, this is a picture case of wire fraud. 18 U.S.C. §1343 [1] for reference, states that "whoever devised or intended to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations [...]" They did not disclose their connection to LendEDU and if LendEDU profited from their fraudulent pretenses or representations then there you have it. [1] https://www.law.cornell.edu/uscode/text/18/1343 https://www.law.cornell.edu/uscode/text/18/1343

shaki-dora 8y ago
I’m not sure... Any actor in a commercial technically falls under that definition.
- larkeith 8y ago
  Would that count as "false or fraudulent pretenses"? It seems like the fact that it's a commercial serves as an indicator that the consumer displayed is a constructed example, rather than an actual person.
- mrleiter 8y ago
  No, you see - with an actor in a commercial, the other party clearly knows the affiliation with the company and the statements made are advertisement. Of course if they lie, and not just exaggerate, the company can be sued for other reasons (e.g. unfair competition). With Drew Cloud and The Student Loan Report, they pretended to be a single person who has personal experience with whatever, but definitely no affiliation with LendEDU. So if LendEDU paid them (or gave them any other benefits) to talk positively about them and steer business towards them, it is fraudulent.
unityByFreedom 8y ago
Since this thread defends using a persona, I'd be interested to know how many YC companies use them. Are tech entrepreneurs viewed as inept at communication and thus need a proxy to speak publicly? Why not make such statements through a spokesperson or the CEO?
crankylinuxuser 8y ago
Would that make Paul Gram and YC co-conspirators, given they had intimate access to internals and funded LendEDU (YC W16)? I'm no lawyer, but making a fraudulent identity for the sake of controlling student lending seems on its face very wrong.
- rrcaptain 8y ago
  Probably not. Unless LendEDU reached out the website personally. And it's unlikely rich investors will face consequences any way.

shaki-dora 8y ago

I’m not sure... Any actor in a commercial technically falls under that definition.

larkeith 8y ago
Would that count as "false or fraudulent pretenses"? It seems like the fact that it's a commercial serves as an indicator that the consumer displayed is a constructed example, rather than an actual person.
mrleiter 8y ago
No, you see - with an actor in a commercial, the other party clearly knows the affiliation with the company and the statements made are advertisement. Of course if they lie, and not just exaggerate, the company can be sued for other reasons (e.g. unfair competition). With Drew Cloud and The Student Loan Report, they pretended to be a single person who has personal experience with whatever, but definitely no affiliation with LendEDU. So if LendEDU paid them (or gave them any other benefits) to talk positively about them and steer business towards them, it is fraudulent.

unityByFreedom 8y ago

Since this thread defends using a persona, I'd be interested to know how many YC companies use them. Are tech entrepreneurs viewed as inept at communication and thus need a proxy to speak publicly? Why not make such statements through a spokesperson or the CEO?

crankylinuxuser 8y ago

Would that make Paul Gram and YC co-conspirators, given they had intimate access to internals and funded LendEDU (YC W16)? I'm no lawyer, but making a fraudulent identity for the sake of controlling student lending seems on its face very wrong.

rrcaptain 8y ago
Probably not. Unless LendEDU reached out the website personally. And it's unlikely rich investors will face consequences any way.