From ’30 Under 30′ to Fraud: The Dark Side of Early Success

In June, Nate Paul, an investor once regarded as a “real estate prodigy,” was indicted on eight felony charges for allegedly making false statements on loan applications, which ultimately led to banks loaning the investor over $170 million. According to the indictment, in one application, Paul claimed to have an account with $31.6 million in cash, when in reality the account in question had less than $500,000. Paul’s alleged violations took place between March 2017 and April 2018.

In 2017, Paul was named in Forbes Magazine’s much sought-after list of “30 Under 30,” a compilation that pays homage to those who have made remarkable strides in the business world before the age of 31. However, his recent indictment isn’t just a one-off situation wherein a businessman turned out to be a possible con.

Paul, who pleaded not guilty to the charges and awaits trial, has joined the infamous group of “30 Under 30” honorees who were praised by the public for their early success — before authorities discovered the illicit shortcuts that got them there.

Since 2011, the magazine has used the annual list to celebrate and honor entrepreneurs who have excelled in their fields early in their careers. The company thoroughly vets each of the nearly 100,000 nominees annually. As the Guardian’s Betsy Reed notes, “The problem here isn’t Forbes, the problem is the vision of success that we’ve been sold and the fetishizing of youth. 30 Under 30 isn’t just a list, it’s a mentality: a pressure to achieve great things before youth slips away from you.”

So, next time you’re feeling discouraged about not reaching your goals by a certain age, remember these entrepreneurs-turned-felons who were once honored for their accomplishments in their youth. And those accomplishments? They wouldn’t have been possible without cutting corners and crossing legal lines.

Sam Bankman-Fried

Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, was named to the list in 2021 for Finance.

Bankman-Fried started Alameda Research in 2017, and later founded FTX in 2019, which was valued at $32 billion in 2022. But in November of that year, FTX filed for bankruptcy after struggling to raise funds and facing a liquidity crisis, and U.S. prosecutors accused him of fraud. He was arrested in the Bahamas in December 2022 and charged with defrauding investors in a scheme that led to the bankruptcy of his company.

In February, four additional charges were added to his docket for conspiring to make over 300 illegal political donations. Currently, Bankman-Fried is out on bail, living at his parents’ house, and awaiting trial (which is scheduled for October).

Related: Who Is FTX Founder Sam Bankman-Fried and What Did He Do? Everything You Need to Know About the Disgraced Crypto King

Elizabeth Holmes

Elizabeth Holmes founded Theranos in 2003, a company that promised a revolutionary blood testing technology, and was once hailed as the world’s “youngest self-made female billionaire.” The company caught the attention of high-profile investors and companies (many of which never even saw the technology before investing) and raked up partnerships with big-name brands like Safeway and Walgreens.

Holmes was never officially on the “30 Under 30” list, however, she did headline the “Under 30 Summit” in 2015, where she also accepted the “Under 30 Doers Award” for her work in the healthcare industry and the potential impact of her company’s technology.

However, just weeks after accepting her Doers Award, Holmes became the subject of an investigation by The Wall Street Journal, raising questions about the legitimacy of her technology. What ensued was nothing short of one mishap after another: failed lab inspections, a slew of lawsuits, and the not-to-be-forgotten net worth dip of $4.5 billion to $0 in 2016.

Finally, in 2018, it was revealed that the technology simply didn’t work, the company collapsed, and Holmes was charged by the SEC with “massive fraud,” alleging Holmes knowingly misled investors and the public.

Elizabeth Holmes speaking during the 2015 Fortune Global Forum in San Francisco, California, in 2015. David Paul Morris | Getty Images.

After nearly a year of delays due to the pandemic, Holmes’ trial began in 2021, and she was ultimately convicted on four counts of fraud in 2022 and sentenced to 11 years in prison. After a request for a new trial was denied in November 2022, Holmes began her sentence in May 2023. Through it all, Holmes has maintained her innocence. She is currently serving time in prison in Bryan, Texas.

Holmes’ story of deceit has been the subject of widespread media coverage, including a 2019 HBO documentary, The Inventor, and 2022 Hulu miniseries, The Dropout (for which Amanda Seyfried won an Emmy for her portrayal of the disgraced founder).

Related: I Worked Side By Side With Elizabeth Holmes. She Seemed Like a Visionary, but We Were All Duped — and It’s a Comfort to See Justice Served.

Charlie Javice

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