Venture Capital Funded Startup: Fraud Failing Up Jason Elmore
July 13, 2017
When a sales presentation created unethically and illegally to promote a medical device 100% off label (never sold on-label) by now former venture capital-funded startup Acclarent’s medical device sales rep Jason Elmore was encouraged, replicated, where he was rewarded with promotions by then Acclarent CEO Bill Facteau and VP of Sales Pat Fabian, was used as evidence presented at the pair’s DOJ six-week criminal trial, resulting in their conviction, that rep should be grateful that the God he exploits got him an immunity deal but instead opted in full self-delusion to “author” a book: Elite Execution: Insights & Disciplines of Extraordinary Salespeople.
Acclarent paid $18 million in civil fines and Elmore (Spirox), like Facteau (EarLens) and Fabian (NxThera) weren’t exiled from the industry, despite the latter two being convicted, all three of these men worked for and continue to work for venture capital funded startups. Facteau & Fabian haven’t been sentenced pending their appeals. The problem today that the public, and many women in the industry aren’t understanding, is that venture capitalists encourage, replicate and reward unethical and illegal behavior and don’t want to fix sexism (think Uber).
Women, like myself, tend to report fraud more frequently, as I did as the sole whistleblower in the federally recognized Acclarent case, and that’s why we won’t see women in venture capital and women’s startups won’t get funded. What don’t need is Ashton Kutcher “starting the conversation” and, while I applaud former Uber engineer Susan Fowler for coming forward (better late then never) regarding the sexual harassment claims, that’s not why Uber CEO Travis Kalanick was fired.
Women like Fowler need to take legal action while they’re still with the company, either through EEOC claims or as Federal whistleblowers. If a company is ignoring discrimination claims, which is very common in venture capital- funded startups, it’s usually because they’re engaged in far greater illegal activity that harms more than just the protected class. The only way we fix a system that doesn’t want to be fixed is through forced accountability: 1. publicly exposing the negative truthful information (image is tied to profit) and 2. legal intervention as federally recognized whistleblowers that will remove the offenders from the system preventing them from failing up at the expense of employees, consumers, patients and taxpayers.
Talking about change isn’t enough. Assistant U.S. Attorney Sara Bloom and I did our jobs, now please tell Judge Allison D. Burroughs to do hers by sending a message to the industry and sentencing convicted venture capital funded startup executives Bill Facteau & Pat Fabian, pending their appeal.