It is fraud to take advantage of the fact that your employees don't realise their stocks are not the same kind of stock that the VC and the founders have.
It is fraud to take advantage of the fact that your employees don't realise their stocks are not the same kind of stock that the VC and the founders have.
morally, yes
legally, no
I don't know where you live but in my country going to some old person and trick them into signing stuff they don't understand is illegal.
Banks aren't even allowed to suggest buying high risk stuff.
Different stock classes SHOULD be illegal. I have yet to hear a single good argument for it that isn't obviously self-serving.
And ownership stake in the company should be a simple thing to understand, not some byzantine mess designed to fuck over the engineers.