Shady pasts haunt many dotcoms

CNETnews.com

A dark side of dotcoms has come to light, and it has nothing to do with plunging stock prices or scrapped IPOs.

Internet company executives are four times more likely to have questionable or criminal pasts than their low-tech counterparts, according to a study by Kroll Associates, a global business investigations and intelligence firm based in New York.

Nearly 40 percent of senior managers at Internet companies had less than squeaky-clean backgrounds. Checks revealed criminal convictions or connections to organizations such as gambling rings or organized crime.

By comparison, 10 percent of non-Internet company executives were found to have questionable backgrounds, Kroll said.

Of the 70 background checks Kroll conducted on Internet company top executives, directors and consultants, 27 had been charged with or connected to white-collar crimes. Allegations included Securities and Exchange Commission violations, insurance fraud, undisclosed bankruptcy and ties to the Russian mafia.

Robert Hogan, a professor of psychology at the University of Tulsa, believes the study pinpoints a difference between straight-laced corporate America and the more risk-seeking executives of Internet start-ups. Hogan described typical dotcom chiefs as "people who are real aggressive, who are willing to take chances, who are willing to roll the dice, break rules."

Hogan also noted that many dotcom leaders started as scrappy entrepreneurs — a stark contrast to many of the polished, business-school graduates and button-down ladder climbers likely to control the helm of giant corporations. Hogan’s research shows that entrepreneurs are considerably more audacious and adventuresome than people who toil for large companies.

"There is a huge difference between an entrepreneur and someone who climbs the corporate hierarchy at Bank of America or General Motors," Hogan said. "In a corporation, it has to do with conscientiousness and rule following. And the name of the game in entrepreneurship is to break the rules."

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Customers enter and exit the Costco on Dec. 2, 2022, in Lake Stevens. (Olivia Vanni / The Herald)
Costco stores could be impacted by looming truck driver strike threat

Truck drivers who deliver groceries and produce to Costco warehouses… Continue reading

Two Washington State ferries pass along the route between Mukilteo and Clinton as scuba divers swim near the shore Sunday, Oct. 22, 2023, in Mukilteo, Washington. (Ryan Berry / The Herald)
Ferry system increases ridership by a half million in 2024

Edmonds-Kingston route remains second-busiest route in the system.

Pharmacist Nisha Mathew prepares a Pfizer COVID booster shot for a patient at Bartell Drugs on Broadway on Saturday, Oct. 1, 2022, in Everett, Washington. (Ryan Berry / The Herald)
Everett lawmakers back universal health care bill, introduced in Olympia

Proponents say providing health care for all is a “fundamental human right.” Opponents worry about the cost of implementing it.

Outside of the updated section of Lake Stevens High School on Thursday, Feb. 27, 2020 in Lake Stevens, Wa. (Olivia Vanni / The Herald)
Lake Stevens, Arlington school measures on Feb. 11 ballot

A bond in Lake Stevens and a levy in Arlington would be used to build new schools.

Lake Stevens Sewer District wastewater treatment plant. (Lake Stevens Sewer District)
Lake Stevens sewer district trial delayed until April

The dispute began in 2021 and centers around when the city can take over the district.

Robin Cain with 50 of her marathon medals hanging on a display board she made with her father on Thursday, Jan. 2, 2025 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
Running a marathon is hard. She ran one in every state.

Robin Cain, of Lake Stevens, is one of only a few thousand people to ever achieve the feat.

People line up to grab food at the Everett Recovery Cafe on Wednesday, Dec. 4, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Coffee, meals and compassion are free at the Everett Recovery Cafe

The free, membership-based day center offers free coffee and meals and more importantly, camaraderie and recovery support.

Devani Padron, left, Daisy Ramos perform during dance class at Mari's Place Monday afternoon in Everett on July 13, 2016. (Kevin Clark / The Herald)
Mari’s Place helps children build confidence and design a better future

The Everett-based nonprofit offers free and low-cost classes in art, music, theater and dance for children ages 5 to 14.

The Everett Wastewater Treatment Plant along the Snohomish River on Thursday, June 16, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Everett water, sewer rates could jump 43% by 2028

The rate hikes would pay for improvements to the city’s sewer infrastructure.

The bond funded new track and field at Northshore Middle School on Thursday, Oct. 24, 2024 in Bothell, Washington. (Courtesy of Northshore School District)
Northshore School District bond improvements underway

The $425 million bond is funding new track and field complexes, playgrounds and phase one of two school replacements.

A salmon carcass lays across willow branches in Edgecomb Creek on Thursday, Jan. 30, 2025 in Arlington, Washington. (Olivia Vanni / The Herald)
Tribes: State fish passage projects knock down barriers for local efforts

Court-ordered projects have sparked collaboration for salmon habitat restoration

The Everett Municipal Building on Thursday, Feb. 29, 2024 in Everett, Washington. (Annie Barker / The Herald)
Everett council approves $111 million construction of sewer project

The Port Gardner Storage Facility, in the works for more than a decade, will help prevent overflows of the city sewer system.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.