Ross was a San Fran "startup" guy. Hey created an MVP product with the usual "fake it till you make it" attitude that is part of this culture. PG himself will happily tell you not to worry about lawyers and other distractions until your MVP is out the door.
This may work for a typical startup, but Ross was foolish enough to apply this advice to a criminal enterprise.
Amusing anecdote: I was at a pg talk last week, and afterwards someone in the audience came up and asked if SR being gone meant there was a market niche for a new startup.
pg's answer was that it was in no way worth the risk, there are lots of other things you can try without the large risk of ending up in jail.
This may work for a typical startup, but Ross was foolish enough to apply this advice to a criminal enterprise.