Current Events > Theranos Founder Elizabeth Holmes Charged With 'Massive' Fraud

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https://gizmodo.com/theranos-founder-elizabeth-holmes-charged-with-massive-1823768780

CEO Elizabeth Holmes and former president Ramesh Sunny Balwani of the disgraced blood-testing startup Theranos have been charged with massive fraud, according to the Securities Exchange Commission, and have agreed to resolve the charges.

Complaints cited by the SEC allege that Theranos and its principals raised over $700 million through an elaborate, years-long fraud in which they exaggerated or made false statements about the companys technology, business, and financial performance. That includes the core product Theranos had claimed to be developinga portable analyzer that could make accurate assessments of a patients health with a few drops of blood drawn from a fingeras well as claims the analyzer had already been deployed by the Department of Defense in Afghanistan.

Theranos was able to court some deep-pocketed investors (Rupert Murdoch among them) and powerful board members (which included former Secretary of State Henry Kissinger and current Trump-appointed Secretary of Defense Gen. James Mattis) as it rocketed towards a valuation of $9 billion. A truly portable device that could handle multiple blood tests would have been a medical breakthrough, and CEO Holmesin the trappings of a biotech Steve Jobshelped sell an idea that otherwise might have seemed too good to be true.

The fantastical promises of Theranos came crashing down in late 2015, when a series of reports from the Wall Street Journal revealed the company couldnt deliver on the tech it claimed to have created. Over the ensuing years, Theranos fired hundreds of employees and shuttered its facilities, and Holmes was banned from operating a laboratory. The company and its founder were accused of running fake tests and were eventually sued by investors who felt rightly duped.

Holmes attempted to bail out her sinking ship by promising investors worthless stock to stave off further suits, and miraculously secured a $100 million loan this past December. But Theranos remains in shambles, and no amount of backroom dealing has helped the company avoid its fate.

Holmes agreed to pay a $500,000 penalty and wont be able to serve as an officer or director of a public company for 10 years. She further agreed to reduce her equity and relinquish 18.9 million shares in the company she started in 2003. Holmes will no longer have majority voting control over the company.

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That's literally all that she got?
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Well that's a lame punishment.

She used to look kinda hot
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Paper_Okami posted...

That's literally all that she got?

"pretty please with sugar on top, don't do that again"
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Paper_Okami posted...

That's literally all that she got?

the real slam is they're making her divest her holdings right now

stock in that company is worthless at the moment

so in case theranos ever rights its ship in the future, she will be left out in the cold
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So much for the youngest self-made female billionaire.

She should get married to Shkreli they were made for each other.
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they actually kinda were, and the gap between her sentence and his is quite amusing
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Antifar posted...

and wont be able to serve as an officer or director of a public company for 10 years.

I hope no one was planning on doing this anyway.
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Darkman124 posted...

Paper_Okami posted...

That's literally all that she got?

the real slam is they're making her divest her holdings right now

stock in that company is worthless at the moment

so in case theranos ever rights its ship in the future, she will be left out in the cold

should still be in jail

i got this book a while ago, i really should read it sometime soon

https://www.amazon.com/Chickenshit-Club-Department-Prosecute-Executives/dp/1501121367
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