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Comment by blackeyeblitzar | Hacker News Reader

[flagged]

You stated that "It looks like a lot of absolutely basic due diligence from investors was skipped, probably due to the prioritization of DEI initiatives and willingness to support them blindly." Do you have any proof that due diligence was skipped? Also, due diligence will not catch every fraud.

I don't think venture capital are known to be discerning about what they invested in. They will dump money and follow industry trends just like everyone else.

DEI initiatives are just excuses for doing a bad job. They would have done a bad job anyway.

I don’t have proof, since I don’t have visibility into the company or their investors. I’m speculating based on the kind of things that are typically done to verify things before finalizing an investment. For example from the DOJ release we know millions in revenue were claimed but the actual revenue was only $11000. They also lied about the cash on hand, which is easy to confirm, and the customers they had. None of the investors checked to confirm the contracts with the biggest school district partnerships they claimed either, it would appear. These are typical things to explicitly confirm in due diligence.

No, but the great thing about a company collapsing into fraud is that anyone can bring out their favorite whipping horse for the reasons why.

> I’m still not sure how that sort of discrimination is legal, but here we are.

It's still an open question whether or not the civil rights act protects whites or not (that is, are they a protected class). That's not flamebait, although I realize it's a spicy observation. Regardless, there is a real question around the legislative intent when the law was passed and in ordinary jurisprudence laws are interpreted through that lens, among other factors.

Open question?

I kinda doubt it.

The CRA doesn't mention, afaik, any particular ethnic group.

E.g., It shall be an unlawful employment practice for an employer to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual’s race, color, religion, sex, or national origin;...

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