4 ms·

I can't understand what kind of business would get swindled by such investments, that too with someone unknown. Are they not doing basic due diligence or tryin

I can't understand what kind of business would get swindled by such investments, that too with someone unknown. Are they not doing basic due diligence or trying to check the past experience of this individual? How is just having a website enough?

Terr_ 3y ago
> Are they not doing basic due diligence That's what they were buying by spending ridiculous sums on a Due Diligence firm, duh! :p
monero-xmr 3y ago
The world of private capital is a whisper network. You aren’t going to be able to Google your way to understanding how it works. A huge chunk of the people involved in that game are old money / trust fund / inheritance types who simply lack street smarts. Reputation is so important, and the laws so murky, that letting $50k go is a much better trade than admitting publicly you were swindled by a scammer. The rich are good targets for con men for all the above reasons and many more.
- 0cf8612b2e1e 3y ago
  However, if they seek revenge, they have ample resources to make your life miserable. Thinking of the people who sold fake wine to a Koch brother >… Koch estimates that he has spent $25 million on legal fees—far more than the $5 million he originally spent on the fake wine itself. https://news.artnet.com/market/koch-brother-loses-it-on-air-after-blowing-millions-on-bogus-wine-41162 https://news.artnet.com/market/koch-brother-loses-it-on-air-...
  - whatshisface 3y ago
    Psychopathy is characterized among other things by a lack of apparent concern for possible negative outcomes.
    - deleted 3y ago
      [deleted]
    - cinntaile 3y ago
      Why are you calling this guy a psychopath for suing fake wine sellers? Do you hate the Kochs or what's the story here?
      - 0cf8612b2e1e 3y ago
        I took parent’s comment to refer to the wine seller.
    - NavinF 3y ago
      Yeah psychopaths are known for stopping fraudsters a matter of principle even when it's against their own financial self-interest /s
      - polygamous_bat 3y ago
        However, of all the people I would complain about if called a psychopath, Koch brothers aren't in that list.
      - deleted 3y ago
        [deleted]
      - Terr_ 3y ago
        > stopping fraudsters [as] a matter of principle Just replace that with "engaging in revenge", and it becomes quite plausible.
        NavinF 3y ago
        Eh not really. I think everyone has a duty to stop fraudsters if they have the means.
        Terr_ 3y ago
  - boeingUH60 3y ago
    This same guy also allegedly held hostage an employee he suspected of defrauding him [1]. But the lawsuit was latter tossed, lol 1 - https://www.forbes.com/sites/christopherhelman/2012/10/14/billionaire-william-koch-accused-of-kidnapping-and-imprisoning-executive-on-colorado-ranch/amp/ https://www.forbes.com/sites/christopherhelman/2012/10/14/bi...
efitz 3y ago
It sounds like he’s preying on desperate startups trying to avoid insolvency. Desperate people tend to grab for any lifeline.

Terr_ 3y ago

> Are they not doing basic due diligence That's what they were buying by spending ridiculous sums on a Due Diligence firm, duh! :p

monero-xmr 3y ago

The world of private capital is a whisper network. You aren’t going to be able to Google your way to understanding how it works. A huge chunk of the people involved in that game are old money / trust fund / inheritance types who simply lack street smarts. Reputation is so important, and the laws so murky, that letting $50k go is a much better trade than admitting publicly you were swindled by a scammer. The rich are good targets for con men for all the above reasons and many more.

0cf8612b2e1e 3y ago
However, if they seek revenge, they have ample resources to make your life miserable. Thinking of the people who sold fake wine to a Koch brother >… Koch estimates that he has spent $25 million on legal fees—far more than the $5 million he originally spent on the fake wine itself. https://news.artnet.com/market/koch-brother-loses-it-on-air-after-blowing-millions-on-bogus-wine-41162 https://news.artnet.com/market/koch-brother-loses-it-on-air-...
- whatshisface 3y ago
  Psychopathy is characterized among other things by a lack of apparent concern for possible negative outcomes.
  - deleted 3y ago
    [deleted]
  - cinntaile 3y ago
    Why are you calling this guy a psychopath for suing fake wine sellers? Do you hate the Kochs or what's the story here?
    - 0cf8612b2e1e 3y ago
      I took parent’s comment to refer to the wine seller.
  - NavinF 3y ago
    Yeah psychopaths are known for stopping fraudsters a matter of principle even when it's against their own financial self-interest /s
    - polygamous_bat 3y ago
      However, of all the people I would complain about if called a psychopath, Koch brothers aren't in that list.
    - deleted 3y ago
      [deleted]
    - Terr_ 3y ago
      > stopping fraudsters [as] a matter of principle Just replace that with "engaging in revenge", and it becomes quite plausible.
      - NavinF 3y ago
        Eh not really. I think everyone has a duty to stop fraudsters if they have the means.
        Terr_ 3y ago
- boeingUH60 3y ago
  This same guy also allegedly held hostage an employee he suspected of defrauding him [1]. But the lawsuit was latter tossed, lol 1 - https://www.forbes.com/sites/christopherhelman/2012/10/14/billionaire-william-koch-accused-of-kidnapping-and-imprisoning-executive-on-colorado-ranch/amp/ https://www.forbes.com/sites/christopherhelman/2012/10/14/bi...

efitz 3y ago

It sounds like he’s preying on desperate startups trying to avoid insolvency. Desperate people tend to grab for any lifeline.