They got rich. VCs are very rarely willing to sue or press charges. The most egregious behavior I saw was at a VOIP startup where after being fired the executi

They got rich. VCs are very rarely willing to sue or press charges. The most egregious behavior I saw was at a VOIP startup where after being fired the executives stole the switching hardware from the data centers and started a new VOIP startup almost immediately. This is the problem with control frauds and executive malfeasance. While it's negative sum as a whole, it's a sure thing for crooked executives which makes it highly tempting in an environment where there is no real risk of meaningful repercussions.