Uber CEO Kalanick Out-Time for Uber SEC & DOJ Whistleblowers To Expose VC Funded Startup Fraud
Updated June 21, 2017: As predicted by The Sociopathic Business Model™ since 2014the Uber board, comprised of the venture capitalists that fund the startup, kicked CEO Travis Kalanick to the curb. Not because of his unethical behavior but likely because of a DOJ investigation which ultimately could implicate them as well.
— KillingMyCareer (@MelaynaLokosky) June 21, 2017
Covington*, Eric Holder’s firm, was likely already representing Uber regarding their May 2017 DOJ criminal investigation into secret software used to evade the law at the time of the public announcement into the sexual harassment investigation. The Yates Memo states that companies can no longer protect executives who should be tried out from under the company’s protective umbrella.
Prediction: Despite Kalanick’s best efforts, he was permanently removed as CEO of the company because the DOJ criminal investigation will likely lead to arrests, indictments and convictions and the VCs want to make sure by the time that happens (3-5 years) Kalanick is a former Uber CEO.
Kalanick should be held accountable for any federal crimes just as the VCs, who knowingly & willingly funded startup fraud, should be held accountable. Kalanick and the VCs are all culpable of any crimes committed but it will be interesting to watch the blame game begin.
Remember, VCs select and groom first time CEOs (aka CEnOs) for several reasons: they’re desperate to prove their worth in Silicon Valley, willing to break the law on behalf of investors at the expense of employees and consumers, and they’ll end up taking the federal fall as the target of DOJ investigations.
*Full disclosure I am currently in legal cases against Johnson & Johnson who are also represented by Covington.
June 13, 2017
The Sociopathic Business Model™ has been calling out Uber’s unethical & illegal behavior that’s been encouraged, replicated and rewarded by the venture capital-funded startup’s CEO Travis Kalanick since 2014. In fact you can read case study after case study here on this site.
— KillingMyCareer (@MelaynaLokosky) March 2, 2017
As predicted by The Sociopathic Business Model™ in March 2017, once the board hired white-collar crime firm Covington & Burling’s Eric Holder, who was also the former Attorney General, that Kalanick’s days as CEO were numbered, but not because of his unethical and illegal behavior. Kalanick is nothing more than a puppet for the Venture Capitalists (VCs) that fund the startup; and, Holder is there to protect the investor’s money, not the employees or consumers.
VCs knowingly & willingly hire & fund first time CEOs (or CEnOs) who are eager to prove their worth and easily manipulated into breaking the law (think Theranos or Acclarent) at the expense of employees & consumers all for the protection of the investor ROI. VCs want 8-10 x’s their original investment back in 3-5 years, and Uber is far off that mark. Startups use false projections for the appearance of hypergrowth for an overvaluation, which is fraud. The idea that since Uber’s inception in 2008 the company is yet to turn a profit but is valued at $70 billion follows the same pattern of fraud seen in both Theranos and Acclarent.
The VCs have more culpability for the corrupt culture they created and funded at Uber. Holder is there to protect the investor’s money by unethically using his knowledge as time as US Attorney General to now help to company as they likely face federal investigations spanning the DOJ & SEC.
The MMpiHer Method™
The only way we can prevent fraud is to hold those responsible accountable. That’s done in two ways:
- publicly exposing the company’s negative truthful information that harms their image which is tied to profits to create positive change, and or,
- government legal intervention which starts with employee whistleblowers.
The idea that most people will challenge that Uber actually has employees is part of the problem. Uber has pathologically manipulated the law and not until employee whistleblowers come forward will the government have what’s necessary to force accountability on to the guilty parties, VCs and their minion startup executives.
Side note to Kalanick, he should think about getting independent counsel now because the company isn’t going to protect him, just ask Acclarent’s Facteau and Fabian. Johnson & Johnson’s Acclarent represented by Covington & Burling-yes the same Eric Holder firm that’s representing Uber, threw them under the bus. And just because these startup executives were stupid enough to be manipulated by VCs doesn’t mean they shouldn’t be held accountable. Not until we put startup executives in jail will we ever hope to create the necessary possible change and eliminate fraud in the startup world. Maybe this time the DOJ can even put a few VCs in jail too!
Too bad Kalanick blocked me years ago on Twitter when I predicted this very scenario that’s happening to him now, he needs to hire me not block me if he plans on staying out of jail.