Comments on: Entellium Scandal Gives Ignition Partners a Black Eye http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/ Startup and Technology News Tue, 10 Nov 2009 20:28:52 -0800 hourly 1 By: another former GS employee http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2601000 another former GS employee Wed, 21 Jan 2009 07:37:50 +0000 http://www.techcrunch.com/?p=23196#comment-2601000 I have to agree with this. I was lied to and fired a few months ago. I'm not bitter anymore. I'm glad I was fired when I was because (1) I hated my job and (2) the job market has dried up alot since then and it would be a harder to find another job now. Anyway, what the last commenter wrote is right. They totally enable cheating. Just go to the globalscholar.com and start a live chat session with a customer server rep. Pretend you have some homework questions or an essay that needs to be done quickly, and ask how the service works. I tried this recently and the customer service rep basically said he'd could have someone do my math problems for me. It was a customer service rep. in India that told me that. I don't know if it's something that occurs with reps from the India office or just a few people there, but I don't know any of the customer service reps in the Bellevue office that would even suggest that. Kal knows that cheating is happening and he refuses to let anyone talk or email each other about it. The management there is basically incompetant. I don't really fault some of them because they've been often promoted from a position they're qualified and competant at into a position and/or discipline that they're not. Good people get fired and other employees don't know about it. There were people who were fired when I was there, and I hear of it for weeks. At other companies I've worked at, there is usually some communication about it to the team. I just talked to a guy who still works there but on a different team. He wondered why he hadn't seem me around recently, and wondered if I had quit. He really had no idea that I had been fired. The reason that it's not talked about is because people would wonder why valuable assets to the company had been fired. I have to agree with this. I was lied to and fired a few months ago. I’m not bitter anymore. I’m glad I was fired when I was because (1) I hated my job and (2) the job market has dried up alot since then and it would be a harder to find another job now.

Anyway, what the last commenter wrote is right.

They totally enable cheating. Just go to the globalscholar.com and start a live chat session with a customer server rep. Pretend you have some homework questions or an essay that needs to be done quickly, and ask how the service works. I tried this recently and the customer service rep basically said he’d could have someone do my math problems for me. It was a customer service rep. in India that told me that. I don’t know if it’s something that occurs with reps from the India office or just a few people there, but I don’t know any of the customer service reps in the Bellevue office that would even suggest that.

Kal knows that cheating is happening and he refuses to let anyone talk or email each other about it.

The management there is basically incompetant. I don’t really fault some of them because they’ve been often promoted from a position they’re qualified and competant at into a position and/or discipline that they’re not.

Good people get fired and other employees don’t know about it. There were people who were fired when I was there, and I hear of it for weeks. At other companies I’ve worked at, there is usually some communication about it to the team. I just talked to a guy who still works there but on a different team. He wondered why he hadn’t seem me around recently, and wondered if I had quit. He really had no idea that I had been fired. The reason that it’s not talked about is because people would wonder why valuable assets to the company had been fired.

]]> By: TechWag » Sherriff ordered to snag Entelliums Stuff http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2552702 TechWag » Sherriff ordered to snag Entelliums Stuff Tue, 02 Dec 2008 01:42:03 +0000 http://www.techcrunch.com/?p=23196#comment-2552702 [...] Entellium Scandal Gives Ignition Partners a Black Eye [...] [...] Entellium Scandal Gives Ignition Partners a Black Eye [...]

]]> By: Entellium - Simply Crooked CRM | CFO Lounge http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2501157 Entellium - Simply Crooked CRM | CFO Lounge Tue, 14 Oct 2008 07:20:54 +0000 http://www.techcrunch.com/?p=23196#comment-2501157 [...] article here from TechCrunch including the actual US District Court Complaint that was filed on [...] [...] article here from TechCrunch including the actual US District Court Complaint that was filed on [...]

]]> By: GS Former http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2500406 GS Former Mon, 13 Oct 2008 17:25:14 +0000 http://www.techcrunch.com/?p=23196#comment-2500406 Check globalscholar.com they are another Ignition backed company. Globalscholar.com is a hotbed of unethical activity. Globalscholar.com is a cheating service for college students they do homework, tests, quizzes, papers and everything else at a price. Globalscholar.com has also been firing people 1 2 and 3 at a time for past months to get out all the people who are not Indian like their CEO. Globalscholar.com is a bad bad bad company to work for with lots of problems. Stay away. Check globalscholar.com they are another Ignition backed company. Globalscholar.com is a hotbed of unethical activity. Globalscholar.com is a cheating service for college students they do homework, tests, quizzes, papers and everything else at a price. Globalscholar.com has also been firing people 1 2 and 3 at a time for past months to get out all the people who are not Indian like their CEO. Globalscholar.com is a bad bad bad company to work for with lots of problems. Stay away.

]]> By: dick http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2500338 dick Mon, 13 Oct 2008 16:31:38 +0000 http://www.techcrunch.com/?p=23196#comment-2500338 Yeah great strategy Every company that tries to compete with Salesforce gets crushed, or hadn't people noticed yet? Yeah great strategy

Every company that tries to compete with Salesforce gets crushed, or hadn’t people noticed yet?

]]> By: NetAmigo http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2500234 NetAmigo Mon, 13 Oct 2008 14:29:53 +0000 http://www.techcrunch.com/?p=23196#comment-2500234 May I'll get it right this time. Correction: In most cases, it does not work out well for such an employee. May I’ll get it right this time. Correction: In most cases, it does not work out well for such an employee.

]]> By: NetAmigo http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2500233 NetAmigo Mon, 13 Oct 2008 14:25:50 +0000 http://www.techcrunch.com/?p=23196#comment-2500233 Correction: In most cases, it does work not out well for such an employee. Correction: In most cases, it does work not out well for such an employee.

]]> By: NetAmigo http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2500230 NetAmigo Mon, 13 Oct 2008 14:23:14 +0000 http://www.techcrunch.com/?p=23196#comment-2500230 In my book, management fraud is pervasive. We read about it all time in the papers. It has been so bad in two companies I worked in during the last 15 years that the government intervened to end it in both. Generally, employees look the other way where it happens because it is a very lonely walk to stand up to it. You may lose your job and find that you are unemployable. It happened to me once and I spent the next four years looking for work. In that case, I went to the Board of Directors blowing the whistle and they were as crooked and incompetent as their managers. What about outside CPA auditors? I think they are part of the problem. I find them to be more concerned about their fees than seeing to it that the accounting is accurate. Look at the current economy scandal. They say the biggest problem is banks won't lend to each other because they do not trust each other to be solvent. Do you really think these banks have been issuing accurate financial statements? Of course not. They have been doing their best to hide their deteriorating financial conditions. Where have all their CPA auditors been? They have been collecting their big fees while they looked the other way and wiped their finger prints. Remember the massive shredding of documents that the discredited Andersen CPA firm carried out as Enron imploded? They were convicted of obstruction of justice on that one, although a court over turned the conviction on appeal due to a technicality over a jury instruction. In this case, it looks like a courageous employee did the right thing and came forward. In most cases, it does work out well for such an employee. In my book, management fraud is pervasive. We read about it all time in the papers. It has been so bad in two companies I worked in during the last 15 years that the government intervened to end it in both. Generally, employees look the other way where it happens because it is a very lonely walk to stand up to it. You may lose your job and find that you are unemployable. It happened to me once and I spent the next four years looking for work. In that case, I went to the Board of Directors blowing the whistle and they were as crooked and incompetent as their managers. What about outside CPA auditors? I think they are part of the problem. I find them to be more concerned about their fees than seeing to it that the accounting is accurate. Look at the current economy scandal. They say the biggest problem is banks won’t lend to each other because they do not trust each other to be solvent. Do you really think these banks have been issuing accurate financial statements? Of course not. They have been doing their best to hide their deteriorating financial conditions. Where have all their CPA auditors been? They have been collecting their big fees while they looked the other way and wiped their finger prints. Remember the massive shredding of documents that the discredited Andersen CPA firm carried out as Enron imploded? They were convicted of obstruction of justice on that one, although a court over turned the conviction on appeal due to a technicality over a jury instruction. In this case, it looks like a courageous employee did the right thing and came forward. In most cases, it does work out well for such an employee.

]]> By: Ezrie http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2499774 Ezrie Mon, 13 Oct 2008 02:22:34 +0000 http://www.techcrunch.com/?p=23196#comment-2499774 Entellium made my company's short list of potential CRM vendors. We ended up with Sage, and thank the lord we did. Entellium made my company’s short list of potential CRM vendors. We ended up with Sage, and thank the lord we did.

]]> By: ShouldbewearingOrange http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2499367 ShouldbewearingOrange Sun, 12 Oct 2008 16:00:54 +0000 http://www.techcrunch.com/?p=23196#comment-2499367 Yes. It has to go deeper or broader than just those two. Yes. It has to go deeper or broader than just those two.

]]> By: ShouldbewearingOrange http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2499365 ShouldbewearingOrange Sun, 12 Oct 2008 15:55:10 +0000 http://www.techcrunch.com/?p=23196#comment-2499365 Ignition is run by a cohort of ultra rich Microsofties. To them the difference between 4M and 14M is rounding error in the value of their jets. Now ask why they were not paying attention. Doh!!! Ignition is run by a cohort of ultra rich Microsofties. To them the difference between 4M and 14M is rounding error in the value of their jets.

Now ask why they were not paying attention. Doh!!!

]]> By: Mike http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2498885 Mike Sat, 11 Oct 2008 21:59:17 +0000 http://www.techcrunch.com/?p=23196#comment-2498885 I think in the Web 2.0 world, these kind of actions are likely to be more common, basically because VCs only invest single-digit millions in most companies. These investments represent a small part of their funds, and thus they are not so motivated to closely follow the accounting at the companies. This lack of monitoring can cause a CEO to see a big pile of cash sitting in a bank account, and nobody looking after it. I know of startups without a CFO or VC-mandated controller on board, which makes it -very- easy to cook books. When the investors care to look, it's already too late. Congratulations to Melisah, I know what she must have been going through. As a general note, do the right thing - if you see something "funny" in your startup, do your best to make sure it really is something that needs reporting (the risk is looking like an ass, and losing everyone's confidence in you), and then report it to the board/investors. I think in the Web 2.0 world, these kind of actions are likely to be more common, basically because VCs only invest single-digit millions in most companies. These investments represent a small part of their funds, and thus they are not so motivated to closely follow the accounting at the companies. This lack of monitoring can cause a CEO to see a big pile of cash sitting in a bank account, and nobody looking after it. I know of startups without a CFO or VC-mandated controller on board, which makes it -very- easy to cook books. When the investors care to look, it’s already too late.

Congratulations to Melisah, I know what she must have been going through. As a general note, do the right thing – if you see something “funny” in your startup, do your best to make sure it really is something that needs reporting (the risk is looking like an ass, and losing everyone’s confidence in you), and then report it to the board/investors.

]]> By: Bob http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2498858 Bob Sat, 11 Oct 2008 21:01:09 +0000 http://www.techcrunch.com/?p=23196#comment-2498858 hush. have a sha chi sandwhich. hush. have a sha chi sandwhich.

]]> By: CFOLOUNGE http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2498734 CFOLOUNGE Sat, 11 Oct 2008 17:30:32 +0000 http://www.techcrunch.com/?p=23196#comment-2498734 Have VC firms learned nothing from Enron, RiteAid, Worldcom??? We absolutely need something like SOX-lite for private companies. As a finance director and controller for a prominent startup, I deliver both good news and bad to executive management and the board. My job is to give sober historical and forward looking results. I hope Paul and Parrish go away for a long time and take anyone else who helped prepare those fraudulent board reports with them. There is more to this story...for sure. Have VC firms learned nothing from Enron, RiteAid, Worldcom??? We absolutely need something like SOX-lite for private companies.

As a finance director and controller for a prominent startup, I deliver both good news and bad to executive management and the board. My job is to give sober historical and forward looking results. I hope Paul and Parrish go away for a long time and take anyone else who helped prepare those fraudulent board reports with them. There is more to this story…for sure.

]]> By: PersonRatings.com http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2498453 PersonRatings.com Sat, 11 Oct 2008 08:45:20 +0000 http://www.techcrunch.com/?p=23196#comment-2498453 He who is without sin cast the first stone. -JC He who is without sin cast the first stone. -JC

]]> By: John Doe http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2498409 John Doe Sat, 11 Oct 2008 07:36:46 +0000 http://www.techcrunch.com/?p=23196#comment-2498409 Second that. Kudos to the VP of Human Resources (Melisah Wojtacha) for doing the right thing. This is the type of person I would want to hire at my company. Second that.

Kudos to the VP of Human Resources (Melisah Wojtacha) for doing the right thing.

This is the type of person I would want to hire at my company.

]]> By: John Doe http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2498405 John Doe Sat, 11 Oct 2008 07:34:25 +0000 http://www.techcrunch.com/?p=23196#comment-2498405 I don't care who is at fault, all I know is I will be due a lenghthy background check on each board member, because the ones on that board fell asleep on duty and I sure as heck will not want to risk my life savings with those chumps. Another reason why it is bad to have executives with to many projects and be on boards at the same time. I don’t care who is at fault, all I know is I will be due a lenghthy background check on each board member, because the ones on that board fell asleep on duty and I sure as heck will not want to risk my life savings with those chumps.

Another reason why it is bad to have executives with to many projects and be on boards at the same time.

]]> By: Kevin http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2498222 Kevin Sat, 11 Oct 2008 03:10:18 +0000 http://www.techcrunch.com/?p=23196#comment-2498222 The website's not down, it's fine. Their product appears to be running fine - it looks like the rumors of their demise may be slightly exaggerated. The website’s not down, it’s fine. Their product appears to be running fine – it looks like the rumors of their demise may be slightly exaggerated.

]]> By: JP Seabury http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2498148 JP Seabury Sat, 11 Oct 2008 02:04:33 +0000 http://www.techcrunch.com/?p=23196#comment-2498148 Kudos to the VP of Human Resources (Melisah Wojtacha) for doing the right thing. Kudos to the VP of Human Resources (Melisah Wojtacha) for doing the right thing.

]]> By: Derrick http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2498105 Derrick Sat, 11 Oct 2008 01:30:04 +0000 http://www.techcrunch.com/?p=23196#comment-2498105 Steve Jobs backdated stock options. He did that at Apple and Pixar and nothing happen to him. The level of corporate integrity has gone awash. Steve Jobs backdated stock options. He did that at Apple and Pixar and nothing happen to him. The level of corporate integrity has gone awash.

]]> By: Jon http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2498079 Jon Sat, 11 Oct 2008 00:59:40 +0000 http://www.techcrunch.com/?p=23196#comment-2498079 Cooking books is ALWAYS stupid, you don't only cheat investors but you cheat yourself in the long run. I don't understand the mentality behind this especially considering they would have to pay even HIGHER taxes with HIGHER revenues (I am assuming these are profits). A huge headache that was easily avoidable with proper auditing and people doing their job... more than a few people where sleeping at the wheel of this company. Jon http://WoodMarvels.com - Create Unique Memories Cooking books is ALWAYS stupid, you don’t only cheat investors but you cheat yourself in the long run. I don’t understand the mentality behind this especially considering they would have to pay even HIGHER taxes with HIGHER revenues (I am assuming these are profits). A huge headache that was easily avoidable with proper auditing and people doing their job… more than a few people where sleeping at the wheel of this company.

Jon
http://WoodMarvels.com – Create Unique Memories

]]> By: Eric Stone http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2497956 Eric Stone Fri, 10 Oct 2008 23:16:13 +0000 http://www.techcrunch.com/?p=23196#comment-2497956 I'll buy all your customers. Make us an offer. http://www.FreeCRM.com sales@freecrm.com I’ll buy all your customers.

Make us an offer.

http://www.FreeCRM.com

sales@freecrm.com

]]> By: AK http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2497859 AK Fri, 10 Oct 2008 21:44:12 +0000 http://www.techcrunch.com/?p=23196#comment-2497859 erick - real numbers still show good growth. tc should buy them....or the govt will erick – real numbers still show good growth. tc should buy them….or the govt will

]]> By: EH http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2497848 EH Fri, 10 Oct 2008 21:24:52 +0000 http://www.techcrunch.com/?p=23196#comment-2497848 Right, because we all know now that banks were forced to offer those loan products. Right, because we all know now that banks were forced to offer those loan products.

]]> By: Ed Zschau http://www.techcrunch.com/2008/10/10/entellium-scandal-gives-ignition-partners-a-black-eye/comment-page-1/#comment-2497840 Ed Zschau Fri, 10 Oct 2008 21:14:42 +0000 http://www.techcrunch.com/?p=23196#comment-2497840 @Jason - great point about revealing bank statements to the board. The VCs were not smart here. In a few of my client companies, the lead VC places a trusted controller or interim CFO inside to account for all of the cash, manage the books and provide an extra pair of "eyes" (read: integrity) in conducting the business. The CEO should have realized that this was going to catch up with him at some point. Lies beget lies. He doomed the company 3 years ago when he started the shell game...and he's getting what he deserves. @Jason – great point about revealing bank statements to the board.

The VCs were not smart here. In a few of my client companies, the lead VC places a trusted controller or interim CFO inside to account for all of the cash, manage the books and provide an extra pair of “eyes” (read: integrity) in conducting the business.

The CEO should have realized that this was going to catch up with him at some point. Lies beget lies. He doomed the company 3 years ago when he started the shell game…and he’s getting what he deserves.

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