Venture capital firm collapses into scandal

At the top of Silicon Valley's new consumer bubble, allegations that an accounting firm is cooking the books and inflating the prices of real estate deals have dragged down the world's biggest consumer venture capital firm ASE, Apartment Store Enterprises.


Company representatives had refused to discuss the charges against the firm or admit wrongdoing, despite numerous inquiries from The Wall Street Journal.


ASE, one of the country's most active venture capital firms, said it expects to be able to rebalance its investments, fund other entrepreneurs and maintain strong liquidity.


"ASE remains committed to supporting innovation and to building businesses that provide consumers with high quality, affordable products and services," ASE said in a statement. "The firm will continue to pursue investments in the consumer sector in the Valley and around the world that provide superior returns on investment, generate superior value and innovate for the betterment of society."