I don't think any of their sales tactics fell under "misleading, illegal, or dishonest." It was their California pre-certification practices that was blatantly illegal.
Well, that still falls under the "Not behaving in a way that damages the reputation of his/her company or of YC" and "Generally behaving in a professional and upstanding way" rules listed on that page.
> Some examples of ethical behavior we expect from founders are:
> ...
> - Not using misleading, illegal or dishonest sales tactics.
> ...
Does this mean Parker is no longer a YC Founder, if the allegations turn out to be true?