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TheStreet Open House

Financial Ruin Consumes, and Ends, CEO's Life

Stock quotes in this article: FB

In a twisted world turned reality, Sherman was the only one who had access to the company's finances. Even Ecomom co-founder Emily Blakeney was in the dark about the company's bank accounts and expenses.

Just six months after securing nearly $6 million from investors -- and $12 million in total -- the company was out of money. Although his ideas could be brilliant, his money management skills were not.

Sherman had always struggled with money and utilizing it wisely. He struggled with taxes and even committed insurance fraud at the age of 16. This was apparent throughout his life, and even to the end of it, where he had almost no money in his bank account at the time of his death.

After Sherman's death, Ecomom was placed into an "Assignment for the Benefit of the Creditor," which is an alternative to bankruptcy. It has since been bought out by etailz, which operates, and will reopen this summer.

Just six months ago, Ecomom seemed to be doing well. It's gone into bankruptcy, been bought out and the founder is gone. Employees, board members and investors say they can't believe it all happened so fast.

Sherman had many close friends. He had a wife. He had many investors (65 in all) who wanted to him succeed. He was a figure among the Las Vegas start-up community, who adored both his work and his personality.

Family and close friends are still struggling to find peace. Sherman was even supposed to meet a friend for a movie the day he died. He continued to make plans as if nothing was wrong. As if nothing was going to happen.

But at 11:12 PM, that Sunday night, there was Sherman, 25 miles from his Las Vegas home, dead. No note. No clues. He would've turned 48 five days later.

As the grandson of a World War II veteran, I express my gratitude to all of the men and women who served in the armed forces and for those families that have lost someone in active duty. Thank you.

-- Written by Bret Kenwell in New York.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.
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