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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 executi

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.

squashua667 6y ago
>> “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.
- toomuchtodo 6y ago
  Wasn't EY also the firm who audited Wirecard? Why is anyone taking their audits seriously? https://markets.businessinsider.com/news/stocks/ey-chairman-expresses-regret-over-wirecard-audit-failures-2020-9-1029591270 https://markets.businessinsider.com/news/stocks/ey-chairman-...
  - ev1 6y ago
    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.
pstoica 6y ago
We can't fathom it either!
tluyben2 6y ago
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...

squashua667 6y ago

>> “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.

toomuchtodo 6y ago
Wasn't EY also the firm who audited Wirecard? Why is anyone taking their audits seriously? https://markets.businessinsider.com/news/stocks/ey-chairman-expresses-regret-over-wirecard-audit-failures-2020-9-1029591270 https://markets.businessinsider.com/news/stocks/ey-chairman-...
- ev1 6y ago
  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.

pstoica 6y ago

We can't fathom it either!

tluyben2 6y ago

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...