Last week, HeadSpin's CEO was charged with fraud for providing “investors false information that overstated HeadSpin’s annual recurring revenue … by approximately $51 million to $55 million.” This week, Elizabeth Holmes goes to trial, three years after she was indicted and her company's value dropped from $9 billion to $0.Every few years we see one of these implosions based on a house of lies: Enron, WorldComm, Bernie Madoff, Jho Low, Michael Milken, etc. Yes, a few of the guilty execs eventually get pilloried, as they should. But these aren't frauds committed by one person on one day: they are systemic and built over years. So I always wonder: how did this start? And how can we stay far clear of the conditions that allow lying and cheating to take root in a group?
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Bursts of Color - Lying and Cheating and…
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Last week, HeadSpin's CEO was charged with fraud for providing “investors false information that overstated HeadSpin’s annual recurring revenue … by approximately $51 million to $55 million.” This week, Elizabeth Holmes goes to trial, three years after she was indicted and her company's value dropped from $9 billion to $0.Every few years we see one of these implosions based on a house of lies: Enron, WorldComm, Bernie Madoff, Jho Low, Michael Milken, etc. Yes, a few of the guilty execs eventually get pilloried, as they should. But these aren't frauds committed by one person on one day: they are systemic and built over years. So I always wonder: how did this start? And how can we stay far clear of the conditions that allow lying and cheating to take root in a group?