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FiveFingerDiscount.com? 418

phillippaxton writes: "According to this link, dot-bomb victims are creating their own severance packages, no doubt walking away with the typical office tchotchkes (staplers, tape dispensers, etc.) but also big ticket items such as plush furniture, copiers, high-powered network servers, etc. One anecdote cites someone who lifted $445,549 of equipment, then tried to sell it on eBay as a company liquidating their assets." On the other hand, the fact that it's illegal to stiff your employees out of wages due them, even in a bankruptcy, isn't mentioned in the article...
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FiveFingerDiscount.com?

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  • by adaking ( 158188 ) on Tuesday September 25, 2001 @09:02AM (#2346102)
    It sounds like the insurance companies are as bad as the people stealing the stuff to begin with. It's not theft if your employees steal from you?

    If anyone knows where I can get an Aeron cheap though, let me know... ;)
  • Sign of the times. (Score:3, Insightful)

    by Lumpy ( 12016 ) on Tuesday September 25, 2001 @09:04AM (#2346112) Homepage
    First off while it's wrong to stiff your employees, stealing equipment is just plain thievery. The people that do this are just untrustworthy thieves and the company should have done a better background check to begin with. I can see someone swiping a pen or a blank CD that they burned at work or even postage on the postage machine. These little things are expected by management in the day to day operation. But walking off with a load balancer or ML530 server, or color laser printer? Unbelieveable.

  • two wrongs (Score:4, Insightful)

    by regexp ( 302904 ) on Tuesday September 25, 2001 @09:07AM (#2346123)
    On the other hand, the fact that it's illegal to stiff your employees out of wages due them, even in a bankruptcy, isn't mentioned in the article...

    If (ex-)employees have a legitimate grievance with their employers, they can bring them to court. If they win, they get paid, and if they don't, they can chalk it up to misfortune and move on. It's ludicrous to suggest that getting stiffed out of wages goes anywhere toward justifying theft.

  • by Anonymous Coward on Tuesday September 25, 2001 @09:11AM (#2346139)
    They may have difficulty blaming themselves when they get laid off, so they direct their anguish at the company.

    Uh, hello? If a company goes bankrupt (usually due to a crappy business model or incompetent management), why should the guy at the bottom (secretary, router tech, janitor) blame themselves?

    I'd say the 80/20 rule holds true here - 20% of the employees are responsible for 80% of the business. If the 20% aren't doing their jobs, then the remaining 80% have a right to be upset with them. After all, the company does have a responsibility to operate in the best interests of all employees, not just the 20% that form the upper management.

    Now, of course, stealing servers, routers and laptops is just wrong, but perhaps this should serve as a wake-up call to the management - it's time to start treating your employees right!
  • by tmark ( 230091 ) on Tuesday September 25, 2001 @09:22AM (#2346185)
    Does anybody know what recourse there is for people like me to get the money owed them?

    You go after them in bankruptcy court. Michael's intimation that somehow the employees' theivery is justified in these situations is just so stupid it makes me sick.

    As for whether or not you can go after the assets of the CEOs, I believe you cannot. IANAL, but as I understood it companies are structured to protect the shareholders and executives from the creditors of the company. Now, if some of them were personally negligent, this might be different, but problems arising from their actions as executives of the company are probably not actionable.
  • by Lizard_King ( 149713 ) on Tuesday September 25, 2001 @09:31AM (#2346222) Journal
    heaven forbid that these geeks, after putting in 80 hour weeks, would feel they're entitled to anything other than an asskick out the door

    A zealous opinion indeed. In fact, when I first read the article, I wholeheartedly agreed with you. Once I got over the emotional charge and saw the situation from a rational perspective it became very simple: These employees don't own this equipment, period. This is the only conceivable arguement. You have to remember that these geeks are getting paid for their 80 hour weeks. They are not entitled to the equipment that their employers paid for.
  • Double standard (Score:4, Insightful)

    by ZanshinWedge ( 193324 ) on Tuesday September 25, 2001 @09:32AM (#2346223)
    Whenever an employer fucks up a pension plan, or terminates someone without good reason it's always "a shame". But whenever an employee walks away with a printer you can buy for 100 bucks on eBay after their severance package has been cancelled and their pay check bounced, it's "a criminal act".
  • by dillon_rinker ( 17944 ) on Tuesday September 25, 2001 @09:35AM (#2346240) Homepage
    This article is misleading and sensationalistic.

    The most common items stolen from tech companies by employees are laptops and handheld computers that cost less than $1,500 per item, asset managers say. But they are also seeing an increase in big-ticket theft.
    The writer gives ZERO facts in support of this.

    One anecdote cites someone who lifted $445,549 of equipment
    The anecdote refers to a MOTOROLA (hardly a dot-bomb) employee. The employee used his "security clearance" to steal a lot of stuff; I'd infer that there were multiple thefts over time while still employed. Either that or Motorola is too stupid to disable employees' access cards when they fire them, or maybe their security guards let people cart out half a million dollars' worth of equipment whenever they feel like it.

    The second largest number mentioned is $100,000...
    somebody had cut a hole through the wall and stolen $100,000 worth of computers.
    This is a flat-out case of robbery robbery. The writer carefully worded it to make it look to a casual reader like an ex-employee had stolen it but gives ZERO evidence for this proposition.

    The only news here isn't news...laptops and PDAs walk off. If you call someone and say "Don't bother coming back," they'll take you at your word, even if they've got a company laptop at home.
  • by streetlawyer ( 169828 ) on Tuesday September 25, 2001 @09:40AM (#2346256) Homepage
    Some may consider that theft, but I honestly can't see how

    Consider the other creditors (including other employees) of the bankrupt company, who would otherwise share in the potential value of those assets.

  • Working for free (Score:4, Insightful)

    by NineNine ( 235196 ) on Tuesday September 25, 2001 @09:52AM (#2346318)
    What I want to know is why people worked for free so long in the first place? I know when my paycheck comes, and if I don't get paid, I don't work. It's as simple as that. I work because I get paid. Why did these people continue to work? That seems like a pretty damn stupid idea. I'd rather sit at home in my PJ's, watching TV and sending out my resume then go into work for free. (And in fact, I was forced to do this once).
  • by Evro ( 18923 ) <evandhoffman AT gmail DOT com> on Tuesday September 25, 2001 @10:01AM (#2346387) Homepage Journal
    How about piercing the corporate veil by proving intent to defraud? I was told the Company had plenty of money 2 or 3 days before the payroll failed to go through, and when I asked what was going on, I was told only "I don't know" by everybody. For two weeks nobody would tell me what was going on. Then it turned out that the company had only $14,000 to be split among ~20 people. THEN they expected everybody to continue working for free. But they promised us shares of the company in exchange for our forbearance. I had to stifle a laugh at that point. In any case, it seems to me they were trying to get more work out of me while knowing they couldn't pay me, which sounds like intent to defraud, which hopefully I can use somehow in court, which it seems is my only recourse.

    As for your saying that Michael's statement that the stealing is justified is stupid and that all these disputes should be resolved in court, I can only say that right now I owe $2000 on my credit cards, ~$2000 to other creditors (gas, electric, phone, cell, cable, etc), have student loans to repay, owe $300 on my checking account and now it seems the one place I can actually live I will no longer have as the landlord no longer wants tenants in his house. I cannot afford to wait for bankruptcy court. I need money NOW. If my sleazebag employer had at least had the common courtesy and decency to warn me that the company was in trouble I would have been able to make some sort of preparations. But they left me high and dry and evicted from my apartment. I have been living since July 27 off donations from my family. I don't even know what to tell them at unemployment, as they have only 3 categories for "why you left your job": fired, discharged (laid off), or quit. I was none of these. I simply stopped getting paid. The company still considers us all employees and expected us to all work for free. I am serious about that. They thought we would all work for free. Anyway, I can understand why people would steal. The day before the payroll didn't happen, the company bought 60 new computers -- Athlon 1ghz 1gb ram whiteboxes -- to use as servers. I want at least 20 of them in repayment. I'm not planning to steal them, but I doubt I'll ever see my money (knowing the conman who is the CEO).
  • by Ars-Fartsica ( 166957 ) on Tuesday September 25, 2001 @11:27AM (#2346983)
    Come on folks, a crime is a crime. It doesn't matter if you work 20 hours a week or 100 hours a week - and all you fuckers spend at least 70 of those 100 hours surfing the web, so don't bother with the "I work all the time" argument.

    As for people feeling "cheated" about their options and pay - well, guess what, you entered into that employment voluntarily. If after twleve months you feel the deal was not equitable, you are a moron for having ever entered in it, plain and simple.

    You are the master of your fate you amoral fuckers. Just because life hands you a lemon, you don't get a blank check to commit theft.

  • by Anonymous Coward on Tuesday September 25, 2001 @11:50AM (#2347133)
    They entered into an agreement to get paid. The other isn't carrying through with their agreement. They have a right to feel cheated.

    And all it costs them to take a laptop is their own dignity. Evidently that isn't worth much to most of the posters anyway.

  • by nlvp ( 115149 ) on Tuesday September 25, 2001 @01:07PM (#2347670)
    I don't know if it is the same in Canada, but in the UK, you don't get to choose what order you pay people in, the law covering liquidation of insolvent businesses states what order creditors come in, and employees are not at the top of the list (although they still come before shareholders).


    The law very clearly states that you liquidate all assets (including laptops etc) at the best price you can get within a short timeframe, and you pay the creditors off in the order stipulated by the law.


    If an employee is stealing goods from a bankrupt company, they are not stealing from the shareholders or from the VC, but from the creditors that came before them (unless the VC's investment is in the form of cash debt as opposed to equity, at which point he will have a higher position in the payment order).


    There are very sound financial reasons for why this order of payment is considered right. Primarily because if you ask someone to take a purely financial risk in a business (ie Debt but no say in the running of the company or selling them goods or services on credit), then a failure to ensure that they get their money back early within the framework of a liquidation, will make them unwilling to finance this kind of investment in the first place.


    Dot coms were not the victim, by and large, of bad management. They were based on poor investment in the first place as their assumptions about market size were over-reaching from the very beginning. People who chose to dump promising careers in established industry, or chose to not go into those industries in the first place because they thought they could make more money in the dot-com sector, were taking exactly the same risk as equity holders. The equity holders still got paid less at liquidation than employees (equity holders come last in the list). When someone joins a company with a screwed up business model, they are choosing to enter into a risk, and have their eyes wide open. When the company fails, they get paid AFTER the liquidator and the creditors. In a company whose main asset is a "good" idea, there's no way the equipment is even going to be enough to pay off the creditors, so it's unsurprising that a number of employees have received less than (sometimes none of) the amounts outstanding to them. This always happens in liquidations, but you don't always hear of people walking off with the furniture. I don't see why any exception should be made in judging the behaviour of dot com employees when they take things that do not belong to them.


    It's a sad fact of life that when a business fails, not everyone who is owed money gets paid as there isn't enough money in the bank to pay them. Being dishonest by trying to jump the queue when it's not your right is morally ambiguous at best, and criminal at worst.


    To the poster who said his VC screwed around with the assets and somehow clawed cash back - I'm not condoning the VC doing anything illegal/immoral either, so I can't comment on that, although if the VC was an equity holder, I don't see how that would allow them to get money back, unless the rules are very different there.

  • by Evro ( 18923 ) <evandhoffman AT gmail DOT com> on Tuesday September 25, 2001 @10:07PM (#2350862) Homepage Journal
    First of all, the salary was lagged by 1 month, so when you get paid, you're not getting paid for the past 2 weeks, you're getting paid for the period 4 weeks ago to 2 weeks ago. Thus, when I didn't get paid one friday, I was owed two paychecks. Then the company didn't offer any explanation for another 2 weeks (during which time I did not work of course). I was already 10 days late on my rent at that point (I had had some financial difficulties prior to that involving medical expenses) and if the job had continued, I would have been in the black within 1.5 months. In any case, with no income and my rent already late, my landlord started eviction proceedings. So the next month or so was spent begging for money from my family so I could have enough to move out of the city where the job was and back closer to home. I had no time to begin the unemployment process. And I don't know where you're getting your (mis)information, but in New York state there is a cap on unemployment of $405/week, from which 10% is deducted for taxes = $365. I had no savings. I left school to take this job. And you wrongly inferred that I still have the cell phone and cable. My statement regarding these items was that I still have the bills, which had accrued for about 3 months due to the aforementioned financial difficulties I had encountered.

    I assumed he was a con man when he decided to lie to both the investors and the public about the plans for the company. Around February it was apparent that he planned to use the company and its product simply as a vehicle to launch his daughter's modeling career (going so far as to claim she and he [neither of whom have ever written even a line of HTML, much less C++] wrote the entire application, both on the client and server side). However, at that time my options were extremely limited as I had only been working there for about 5 months, and my main reason for taking the job was to gain programming experience. 5 months of experience isn't very useful, especially when the project isn't even complete and you've got essentially nothing to show for those 5 months.

    While I'll be the first to admit that I wasn't the most financially responsible person on the block, I don't think any amount of planning could have prepared me for the level of underhandedness to which my employer sank.

    Oh, if anybody is wondering, the company was Aimster [aimster.com], which has now gone so low as to try and profit off the WTC disaster [aimster.com]. While the page now claims that 100% of the money generated will go to the Red Cross, it initially said that "a portion" of the money would go to Aimster's "fight for freedom". Then I guess they took a lot of flak for that, and changed it (copying the text nearly verbatim from PayPal's donation page [paypal.com]) but I seriously doubt that the red cross will see a dime of any money generated from that page. And I'm pretty doubtful that the poster they're trying to sell even exists.

    A lot of what I wrote above is irrelevant to this subject, but the depths to which Aimster's CEO will sink appalls me more with each passing day.
  • by aozilla ( 133143 ) on Wednesday September 26, 2001 @11:50AM (#2352759) Homepage

    Very difficult to do, especially if it's a startup company.

    If it's a startup company you're taking a big risk by working there. If you want stability, work for Microsoft, and even then, put a few months pay into a low risk savings account. On the other hand, if you can afford to take the risk, many of these startup companies are the most fun and highest paying jobs to work for.

    If the risk is really a problem for you, find out about the main investors and executives. When I started working for my first internet company, a simple search on Yahoo showed lots of information about the previous investments that our lead investor made, and I even found out some information about the former companies of our CEO. If I had particularly cared (I didn't mind risk, so I didn't), I could have contacted those previous companies and asked for even more information.

    Above all, remember that if it looks too good to be true, it probably is. Maybe you really have won the lottery by getting that company to choose you over all the other candidates, or maybe that company has just found the biggest sucker. Ultimately you always have to take some risk, but there are ways you can minimize it.

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