[Aurornis]

> It's interesting how nobody talks about due-diligence being completely broken.

The majority of the talk around this case has been about the due diligence failures. The judge even called it out.

Consumer businesses are harder to vet. It's not like a B2B with a dozen top customers where you can call them all and confirm that sales are happening. Non-response and customer churn is expected to be a high and changing number. From what I read she also invoked various privacy law excuses to give them the run-around while they were pressured to close the deal.

But JPMorgan's failures don't excuse the criminal actions. If someone enters your house and steals your computer, it doesn't matter if you negligently left the door unlocked. A crime is a crime.

[NickC25]

>From what I read she also invoked various privacy law excuses to give them the run-around while they were pressured to close the deal.

And that should have been a massive red flag for JPMC. They should have nope'd out of that deal on the spot.

I run a hybrid B2B and B2C consumer packaged good company. I have a few small investors. They know who my top clients are, because they ask in good faith, and I answer in good faith.

[Aurornis]

> I run a hybrid B2B and B2C consumer packaged good company. I have a few small investors. They know who my top clients are, because they ask in good faith, and I answer in good faith.

Right, because it's easy to share your customer list when you have a small number of customers and they are repeat customers.

Her company helped with student loans. Her customers were mostly one-time customers. The customer count was supposed to be indicative of how many new college students they could expect to sign up each year.

[dboreham]

Right but the privacy law excuse is nonsense. All such laws (possible exception of medical data) allow for 3rd parties to be "read in" on the data for legitimate purposes. Source: worked as a consultant for companies with private data for 20 years.

[Ifkaluva]

I seem to remember she actively forged accounts. Even funded a genAI project with a university professor on how to credibly forge accounts