Unraveling the Fraud: The Inside Story of a Boom-Time Start-Up without Oversight

After starting HeadSpin in 2015, the founder Manish Lachwani engaged in fraud, using fake invoices and inflated revenue numbers to paint a stronger financial picture. Despite raising $117 million in investment, the company had no CFO, HR department, or audits. Investors were aware of the inaccuracies, but pushed investments to a $1.1 billion valuation. After pleading guilty in April, Lachwani could face up to 20 years in prison for each count of fraud. Loose regulations and oversights at start-ups have led to more cases of fraud being uncovered. Among these, the founder of Nikola and an investor from Silicon Valley have been indicted. HeadSpin’s CEO has mentioned that corporate governance has since improved. Despite the misrepresentations, the company continued operations and secured new funding from Atlassian Ventures. A letter from his lawyers argued for a reduced sentence, claiming that despite being untruthful, the investors didn’t actually lose money.

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Moms Managing Girl Influencers: A Marketplace Stalked by Men

Elissa began receiving threatening messages early last year from a person calling themselves “Instamodelfan” targeting her daughter’s Instagram account. Despite having over 100,000 followers, the account has been under scrutiny for potentially exploiting children in exchange for money. However, the issue runs deeper than that. Research from The New York Times found that the platform […]

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Insights from The Times’s Investigation of Child Influencers

Instagram maintains the 13-year-old minimum age for accounts, but parents can take control, largely for their daughters’ ambitions to become influencers. Parents initiate their child’s modeling career or gain favor from clothing brands, but a dark subculture emerges, controlled by men attracted to minors, as per The New York Times. The emergence of mom-run profiles […]

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Rising Threat: China’s Growing Cyber Espionage and the New Vulnerability

Beijing’s Networks Expanding Hacking Efforts China has spread its hacking reach with new tools that exploit computer vulnerabilities and a network of contracted vendors. The large scale of China’s hacking operations poses a significant threat, with the FBI reporting China’s hacking program to be larger than all major nations combined. The U.S. has tracked consistent […]

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