It's pretty common. VC funds will run these checks on you, and most companies do as well when they even hire you. It's table stakes for any company committed to data security and safety.
No need to be hostile, I'm just trying to understand the situation :)
Joi would love to pretend he (somehow) didn't know, but a colleague has come forward to say he warned him.
https://medium.com/@EthanZ/on-me-and-the-media-lab-715bfc707...
I don't think there is one real error here as you put it, but it's been made public he was warned about him before and people he worked with would refuse to go to his properties when invited and told him why (citation: https://medium.com/@EthanZ/on-me-and-the-media-lab-715bfc707...).