A Game of Jenga
After hearing the news of Peregrine CEO, Russ Wasendorf’s 20 year, $200 million dollar Ponzi scheme, and failed attempt at suicide, I’m struck with inspiration to write. My initial reaction to blogging something was to explain the details, lay out my questions, and maybe make sense of it; but the truth is, you already know the details, my questions are the same as yours, and there is no making sense of it.
What I want to pose to you instead is that deception invariably fails and people’s perception of who you are as a business owner is in fact the same as who you are as a person.
Wasendorf began counterfeiting bank statements and changing balance numbers 20 years ago when he was faced with the decision to close his business due to lack of capital or, alternatively – cheat. Maybe he thought: “I’ll just borrow some investor money long enough to get my business back in shape and then I’ll put it back”. The fact is, 20 years ago, Wasendorf was a small business owner just like you or me. His initial decision to cheat the system in hopes of saving his business spiraled over time into a multi-million dollar spending spree of investors’ money.
It is the small crimes that will blindly catch up to you: the white lie, stealing some petty cash funds, stealing a candy bar from the gas station, fudging some business numbers on your tax return, taking a few crops from the farmer’s land – you get the idea. Over time you become immune to the possibilities of being caught, maybe getting bolder with your choices and more confident that what you’re doing is ok.
But don’t be fooled: You can’t operate your business on an “As long as I don’t get caught” notion, because you will. To the public, your reasons or scale of crime won’t matter. And you will affect far more people that just yourself. As a business owner, you have a responsibility that far outweighs that of an employee. Your employees look up to you, not just as an entrepreneur, but also as a person. They will see how you live your life, what you do with your money, and how you treat other people. Your community will see the same. Wasendorf was beyond convincing in his lavish employee benefits, working atmosphere, and philanthropic endeavors. But inevitably, stuff* hit the fan. And now those same people’s (employees, community AND family) perceptions he spent years building up, are dead, never to be risen again. I’m sure you’ve heard the phrase “Rome wasn’t built in a day” – Same goes for trust and honesty.
The take away from Wasendorf’s story is a lesson that extends far beyond a prison sentence & disappointment in a man of our community . Be careful how you run your business and stay out of the gray. If you’re questioning if something is ethical or Not – It’s usually NOT. Use the resources you have to put your best foot forward. People will inevitably look beyond the glitz and glam whether it’s now or it’s later.
Sarah Bey is UNI Entrepreneurship Outreach Coordinator & GIS Specialist.
