Tag Archives: paychecks

Red flags at the startup

Wild yet totally believable story from Penny Kim about how she moved from Texas to California to join a startup. It’s got mismanagement, office politics, money problems, lies, and even faked wire transfer receipts:

The scam artist sat there and concocted this in his head instead of telling us the truth that the money wasn’t there. He then weighed the pros and cons and decided it was worth it. Then he took the time to Photoshop in each of his 17 employees’ names (or he forced someone else to do his dirty work).

Although she tried to keep the company name hidden, it was revealed by others later. See this Hacker News thread and article at Business Insider.

It is hard to run a small company that isn’t quite profitable, balancing the ups and downs of revenue and the timing of new investments. When I was much younger, I could probably be sympathetic to a company that was honest and transparent about a rare late paycheck or reimbursement. But Penny Kim’s startup story is much worse than that; it’s a perfect example of how not to handle leadership mistakes.