Tomorrow there is a court date to see whether or not ethical standards apply to those determined to hoodwink the law.

Clearly Ron Levinsohn of Yahoo and Paul Allen’s Vulcan Capital feel that it is perfectly ok to try to do so- to use the law against itself by contorting its intent to justify their actions. If the defendants succeed, they will have succeeded in establishing the legalization of fraud. I’m not sure if this is a legal precedent.

As a litmus test of the Silicon Valley community this in and of itself is cause for dismay. And make no mistake- this  is  a litmus test of the Silicon Valley community.

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