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> it is really damn hard to bring a CEO doing obviously fraudulent things to heel. If it’s “obviously” fraudulent, why isn’t law enforcement involved? No lawsu
by briandear 7y ago
> it is really damn hard to bring a CEO doing obviously fraudulent things to heel.
If it’s “obviously” fraudulent, why isn’t law enforcement involved? No lawsuit required since fraud is a crime.
- bsder 7y agoThey could. But the FBI, SEC and IRS probably won't move unless you present them with an absolute slam dunk worth $5 million or more in direct penalties. If you're below that range, you're probably going to have to file a civil lawsuit. And, after your win that, one of the TLA's might pay attention. This is a problem if you genuinely want more small companies funded by more small investors. If the SEC doesn't figure out how to police the $1-$5 million range of companies, all they are doing is creating a nice fertile ground for conmen.
- qtplatypus 7y agoBecause "obvious" might not rise to the level of "beyond reasonable doubt".
- bsder 7y agoMonetary penalty cases generally are "preponderance of the evidence". "Beyond reasonable doubt" is generally only when jail is involved.