Moses Joseph began working at a Palo Alto VC firm called the Anila Fund in 1999 and soon after began conning banks such as US Bank, Wells Fargo, Eastman Kodak, Bank One and Silicon Valley Bank out of loans and investments with forged financial statements, checks and stock certificates. Yesterday, a two-month trial ended with a jury deciding to convict Joseph on 22 counts. What does this prove?

That the best way for VCs to swindle cash from investors — even when big exits remain are as rare as they are these days — are through exorbitant fees.

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