Current Events > James Mattis linked to massive corporate fraud

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antfair
03/16/18 11:08:32 AM
#1:


https://www.vox.com/2018/3/16/17124288/mattis-theranos-board-trump

Secretary of Defense James Mattis is implicated in one of the largest business scandals of the past decades, described by the Securities and Exchange Commission as an elaborate, years-long fraud through which Theranos, led by CEO Elizabeth Holmes and president Ramesh Sunny Balwani, exaggerated or made false statements about the companys technology, business, and financial performance.

Basically, their biotech startup was founded on the promise of faster, cheaper, painless blood tests. But their technology was fake.

Mattis not only served on Theranoss board during some of the years it was perpetrating the fraud after he retired from US military service, but he earlier served as a key advocate of putting the companys technology (technology that was, to be clear, fake) to use inside the military while he was still serving as a general. Holmes is settling the case, paying a $500,000 fee and accepting various other penalties, while Balwani is fighting it out in court.

Nobody on the board is being directly charged with doing anything. But accepting six-figure checks to serve as a frontman for a con operation is the kind of thing that would normally count as a liability in American politics.

But nobody wants to talk about it. Not just Trump and his co-partisans in Congress; the Democratic Party opposition is also inclined to give Mattis a pass. Everyone in Washington is more or less convinced that his presence in the Pentagon is the only thing standing between us and possible nuclear Armageddon.
...
This scheme worked because Theranos was deeply tied in with the American political, business, and media establishment counting former Secretaries of State Henry Kissinger and George Shultz as board members, and maintaining sufficient clout that Hillary Clintons campaign was unwise enough to schedule a high-profile fundraiser with Holmes months after the publication of Carreyrous expos.

But perhaps none of these elite supporters was as valuable as Mattis.

As the SEC complaint describes, a main element of the fraud was that Holmes, and Balwani claimed that Theranos products were deployed by the U.S. Department of Defense on the battlefield in Afghanistan and on medevac helicopters and that the company would generate more than $100 million in revenue in 2014.

Holmes, the SEC alleged, knew, or was reckless in not knowing, that these statements were false and misleading. Its easy to see, however, why investors might be fooled about this because one of the companys board members, Mattis, joined Theranos in 2013 immediately after retiring from a long career of military service that concluded with a stint leading CENTCOM, the US combatant command that is responsible for, among other things, Afghanistan.

Mattis (who, obviously, has no expertise in medical testing) pushed for the military to use Theranos technology, but it was never actually used because it didnt work.

Nonetheless, as of December 2015, Mattis was still vouching for the company, telling the Washington Post that he had quickly seen tremendous potential in the technologies Theranos develops, and I have the greatest respect for the companys mission and integrity.
...
But by the time Mattis was selected to serve as Trumps secretary of defense in January 2017, the basic scope of the fraud was already well-known to the public thanks to diligent journalistic work. So was the fact that Mattis was not only earning $150,000 a year for his service on the Theranos board but was also involved in pro-Theranos advocacy while on active military duty.

He duly resigned from Theranos on January 5, 2017 by which time the company was already commonly described as embroiled in scandal by press reports but, remarkably, the whole affair didnt come up at his confirmation hearings.

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#2
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SK8T3R215
03/16/18 11:13:36 AM
#3:


Whew that's a lot of words trying to put him in on this even though the SEC investigation concluded management was at fault.
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Patchwork
03/16/18 11:14:12 AM
#4:


So, did he actually know the shit didn't work and then advocate it, or was he also being misled?

Mattis is an almost renowned stand-up guy. I'm gonna have to look more into this.
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Tyranthraxus
03/16/18 11:17:17 AM
#5:


Patchwork posted...
So, did he actually know the shit didn't work and then advocate it, or was he also being misled?

Mattis is an almost renowned stand-up guy. I'm gonna have to look more into this.

It's not that it doesn't work, it just doesn't work with enough accuracy to be a reliable medical tool. They've made attempts to improve the technology but haven't really gotten anywhere and have lied to investors about their progress.
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SK8T3R215
03/16/18 11:18:32 AM
#6:


Patchwork posted...
So, did he actually know the shit didn't work and then advocate it, or was he also being misled?


Most likely the latter since the article is basically a bunch of assumptions to find him at fault
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mario2000
03/16/18 11:22:11 AM
#7:


only the best people
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s0nicfan
03/16/18 11:22:39 AM
#8:


Mattis is a fantastic Sec of Defense so I hope this doesn't lead to his resignation.
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Balrog0
03/16/18 11:22:50 AM
#9:


jim 'mad stacks' mattis
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mario2000
03/16/18 11:23:02 AM
#10:


s0nicfan posted...
Mattis is a fantastic Sec of Defense so I hope this doesn't lead to his resignation.

drain the swamp
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tamashiini
03/16/18 11:24:20 AM
#11:


s0nicfan posted...
Mattis is a fantastic Sec of Defense so I hope this doesn't lead to his resignation.


Garbage in, garbage out.
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s0nicfan
03/16/18 11:24:25 AM
#12:


mario2000 posted...
s0nicfan posted...
Mattis is a fantastic Sec of Defense so I hope this doesn't lead to his resignation.

drain the swamp


Fuck off. You'd see the whole country burn to the ground just so you can say "I told you so". Half of Trump's cabinet is garbage, but Mattis was the architect behind the Syria airfield strike and has overseen the rapid victories against ISIS. He's exactly the kind of person we need in that position right now.
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Patchwork
03/16/18 11:24:35 AM
#13:


SK8T3R215 posted...
Patchwork posted...
So, did he actually know the shit didn't work and then advocate it, or was he also being misled?


Most likely the latter since the article is basically a bunch of assumptions to find him at fault


That's what I figured.
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SK8T3R215
03/16/18 11:27:35 AM
#14:


Patchwork posted...
SK8T3R215 posted...
Patchwork posted...
So, did he actually know the shit didn't work and then advocate it, or was he also being misled?


Most likely the latter since the article is basically a bunch of assumptions to find him at fault


That's what I figured.


Also it's a Vox article so you can assume it's exaggerated and poorly understood by the writer.
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mario2000
03/16/18 11:27:45 AM
#15:


s0nicfan posted...
mario2000 posted...
s0nicfan posted...
Mattis is a fantastic Sec of Defense so I hope this doesn't lead to his resignation.

drain the swamp


Fuck off. You'd see the whole country burn to the ground just so you can say "I told you so". Half of Trump's cabinet is garbage, but Mattis was the architect behind the Syria airfield strike and has overseen the rapid victories against ISIS. He's exactly the kind of person we need in that position right now.

keep crying your delicious redhat tears, they sustain me
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Antifar
03/16/18 11:28:02 AM
#16:


s0nicfan posted...
Mattis is a fantastic Sec of Defense so I hope this doesn't lead to his resignation.

Why would you assume that fraudulent behavior would result in a resignation from the Trump administration?
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s0nicfan
03/16/18 11:28:20 AM
#17:


mario2000 posted...
s0nicfan posted...
mario2000 posted...
s0nicfan posted...
Mattis is a fantastic Sec of Defense so I hope this doesn't lead to his resignation.

drain the swamp


Fuck off. You'd see the whole country burn to the ground just so you can say "I told you so". Half of Trump's cabinet is garbage, but Mattis was the architect behind the Syria airfield strike and has overseen the rapid victories against ISIS. He's exactly the kind of person we need in that position right now.

keep crying your delicious redhat tears, they sustain me


Good, you'll need to be well fed when your extremist agenda never gets passed and the only thing left for you to eat is your hat.
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KingCrabCake
03/16/18 11:28:48 AM
#18:


Mad Dogg not going anywhere
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foreveraIone
03/16/18 11:28:59 AM
#19:


Antifar posted...
Why would you assume that fraudulent behavior would result in a resignation from the Trump administration?

lol this. this admin is corrupt as shit.
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mario2000
03/16/18 11:32:58 AM
#20:


s0nicfan posted...
mario2000 posted...
s0nicfan posted...
mario2000 posted...
s0nicfan posted...
Mattis is a fantastic Sec of Defense so I hope this doesn't lead to his resignation.

drain the swamp


Fuck off. You'd see the whole country burn to the ground just so you can say "I told you so". Half of Trump's cabinet is garbage, but Mattis was the architect behind the Syria airfield strike and has overseen the rapid victories against ISIS. He's exactly the kind of person we need in that position right now.

keep crying your delicious redhat tears, they sustain me


Good, you'll need to be well fed when your extremist agenda never gets passed and the only thing left for you to eat is your hat.

we are living in an era where we are fortunate enough to see the death of american conservatism

the more you try and fight it, the more painful it will be when it finally happens

just accept it. it is a good thing
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s0nicfan
03/16/18 11:34:49 AM
#21:


mario2000 posted...
s0nicfan posted...
mario2000 posted...
s0nicfan posted...
mario2000 posted...
s0nicfan posted...
Mattis is a fantastic Sec of Defense so I hope this doesn't lead to his resignation.

drain the swamp


Fuck off. You'd see the whole country burn to the ground just so you can say "I told you so". Half of Trump's cabinet is garbage, but Mattis was the architect behind the Syria airfield strike and has overseen the rapid victories against ISIS. He's exactly the kind of person we need in that position right now.

keep crying your delicious redhat tears, they sustain me


Good, you'll need to be well fed when your extremist agenda never gets passed and the only thing left for you to eat is your hat.

we are living in an era where we are fortunate enough to see the death of american conservatism

the more you try and fight it, the more painful it will be when it finally happens

just accept it. it is a good thing


That's totally why you're seeing a global rise in conservatism, right? But by all means I'm not going to stop you, because the insane ideals of you and people like you are creating conservative strongholds in every western nation. You've got countries like the UK, Italy, France, etc where conservative parties are going in single elections from single digits to dominance and eastern european countries pushing so hard right it's actually kind of getting scary.

You have no idea what you're birthing.
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mario2000
03/16/18 11:36:39 AM
#22:


s0nicfan posted...
mario2000 posted...
s0nicfan posted...
mario2000 posted...
s0nicfan posted...
mario2000 posted...
s0nicfan posted...
Mattis is a fantastic Sec of Defense so I hope this doesn't lead to his resignation.

drain the swamp


Fuck off. You'd see the whole country burn to the ground just so you can say "I told you so". Half of Trump's cabinet is garbage, but Mattis was the architect behind the Syria airfield strike and has overseen the rapid victories against ISIS. He's exactly the kind of person we need in that position right now.

keep crying your delicious redhat tears, they sustain me


Good, you'll need to be well fed when your extremist agenda never gets passed and the only thing left for you to eat is your hat.

we are living in an era where we are fortunate enough to see the death of american conservatism

the more you try and fight it, the more painful it will be when it finally happens

just accept it. it is a good thing


That's totally why you're seeing a global rise in conservatism, right? But by all means I'm not going to stop you, because the insane ideals of you and people like you are creating conservative strongholds in every western nation. You've got countries like the UK, Italy, France, etc where conservative parties are going in single elections from single digits to dominance and eastern european countries pushing so hard right it's actually kind of getting scary.

You have no idea what you're birthing.

that is because they are small, frightened children who cannot cope with the idea that the world might move on without them

but the onus is on them to adapt, not progressivism
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MC_BatCommander
03/16/18 11:36:58 AM
#23:


s0nicfan posted...
mario2000 posted...
s0nicfan posted...
Mattis is a fantastic Sec of Defense so I hope this doesn't lead to his resignation.

drain the swamp


Fuck off. You'd see the whole country burn to the ground just so you can say "I told you so". Half of Trump's cabinet is garbage, but Mattis was the architect behind the Syria airfield strike and has overseen the rapid victories against ISIS. He's exactly the kind of person we need in that position right now.


Look you can appreciate his actions as the secretary of defense but if he committed felony fraud he needs to answer for that. No on'es above the law.
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s0nicfan
03/16/18 11:37:35 AM
#24:


MC_BatCommander posted...
s0nicfan posted...
mario2000 posted...
s0nicfan posted...
Mattis is a fantastic Sec of Defense so I hope this doesn't lead to his resignation.

drain the swamp


Fuck off. You'd see the whole country burn to the ground just so you can say "I told you so". Half of Trump's cabinet is garbage, but Mattis was the architect behind the Syria airfield strike and has overseen the rapid victories against ISIS. He's exactly the kind of person we need in that position right now.


Look you can appreciate his actions as the secretary of defense but if he committed felony fraud he needs to answer for that. No on'es above the law.


Sure, IF he committed felony fraud, but as far as the article states:
antfair posted...
Nobody on the board is being directly charged with doing anything.

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Antifar
03/16/18 11:39:04 AM
#25:


s0nicfan posted...
That's totally why you're seeing a global rise in conservatism, right?

You're seeing a rise in nationalism. Classical conservatism and the traditional right wing parties aren't on the rise.

The Tories held a snap election and wound up needing a coalition with the kooky DUP. In Italy, the party that just won a plurality of seats is so vague on its actual principles (besides a loose opposition to migrants) that it tells its members to abstain from voting on anything controversial. France saw its Republicans pushed out of the way by fucking fascists (who then lost heavily to a guy who might as well personify the "globalist" epithet).

In the US, the Republican Party holds power on the basis of an administration filled with philanderers and those who see an opportunity to bilk the public for taxpayer money for their personal gain. It's hardly small government, religious conservatism at the fore.
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mario2000
03/16/18 11:39:16 AM
#26:


MC_BatCommander posted...
s0nicfan posted...
mario2000 posted...
s0nicfan posted...
Mattis is a fantastic Sec of Defense so I hope this doesn't lead to his resignation.

drain the swamp


Fuck off. You'd see the whole country burn to the ground just so you can say "I told you so". Half of Trump's cabinet is garbage, but Mattis was the architect behind the Syria airfield strike and has overseen the rapid victories against ISIS. He's exactly the kind of person we need in that position right now.


Look you can appreciate his actions as the secretary of defense but if he committed felony fraud he needs to answer for that. No on'es above the law.

redhats would have each and every one of their paragons escape justice just so they can say "I told you so"

party of law and order
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s0nicfan
03/16/18 11:41:08 AM
#27:


Antifar posted...
s0nicfan posted...
That's totally why you're seeing a global rise in conservatism, right?

You're seeing a rise in nationalism. Classical conservatism and the traditional right wing parties aren't on the rise.

The Tories held a snap election and wound up needing a coalition with the kooky DUP. In Italy, the party that just won a plurality of seats is so vague on its actual principles (besides a loose opposition to migrants) that it tells its members to abstain from voting on anything controversial. In the US, the Republican Party holds power on the basis of an administration filled with philanderers and those who see an opportunity to bilk the public for taxpayer money for their personal gain.


You could make the same argument about classic liberalism, though. The current far-left and people like Mario in no way represent traditional left values and they're at a point where you've got parties like Labour that have completely stopped talking about workers. It's more likely that both parties are evolving in their stances, but you can't honestly say the right is dying without simultaneously admitting the left is dying in the exact same way.
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Doom_Art
03/16/18 11:43:01 AM
#28:


Get Mattis out. Corrupt as hell.

Drain the swamp
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Antifar
03/16/18 11:43:39 AM
#29:


s0nicfan posted...
You could make the same argument about classic liberalism, though.

Yes, absolutely. Liberalism sucks and deserves to be replaced.

s0nicfan posted...
The current far-left and people like Mario in no way represent traditional left values


Yes they do. They don't represent liberal values.

s0nicfan posted...
they're at a point where you've got parties like Labour that have completely stopped talking about workers.

This is absolutely, 100% not true. The relative success of Corbyn has been the direct result of working class movements and strengthened ties to labor unions. Labour has put workers first for the first time in a long time.
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foreveraIone
03/16/18 11:45:13 AM
#30:


Doom_Art posted...
Get Mattis out. Corrupt as hell.

Drain the swamp

yes. Mattis out. Bolton in
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s0nicfan
03/16/18 11:46:15 AM
#31:


Antifar posted...
This is absolutely, 100% not true. The relative success of Corbyn has been the direct result of working class movements and strengthened ties to labor unions. Labour has put workers first for the first time in a long time.


Are you talking in the last 6 months, or the last few years? Labour has seem content to play identity politics rather than focus on issues like the housing crisis and a jobs shortage, but it's possible they've changed their tune a bit. There's also that nagging problem of modern Labour having to repeatedly deal with high ranking members of their party being openly antisemitic.
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Balrog0
03/16/18 11:49:42 AM
#32:


nationalist trade policies actually are a classical conservative stance, it is just that there have never been any classical conservative parties in the U.S. as both are based on classical liberal principles (at least, so they say)
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creativerealms
03/16/18 11:52:21 AM
#33:


Wow it's never ending.
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Balrog0
03/16/18 11:53:22 AM
#34:


s0nicfan posted...
Are you talking in the last 6 months, or the last few years? Labour has seem content to play identity politics rather than focus on issues like the housing crisis and a jobs shortage, but it's possible they've changed their tune a bit. There's also that nagging problem of modern Labour having to repeatedly deal with high ranking members of their party being openly antisemitic.


Corbyn was the far-left insurgent candidate for Labour leader back in 2015. His campaign was based on a strong anti-austerity stance and opening up the party to more grassroots activists, including union members. It was a rejection of the more centrist third way ideology of Milliband/Blair
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Antifar
03/16/18 11:54:31 AM
#35:


s0nicfan posted...
Labour has seem content to play identity politics rather than focus on issues like the housing crisis and a jobs shortage, but it's possible they've changed their tune a bit.

I'm talking about the party under Corbyn and last year's election. The platform Labour put out for that election put workers front and center: https://labour.org.uk/manifesto/fair-deal-work/
https://www.yahoo.com/news/labour-apos-manifesto-shows-true-113911592.html
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Doom_Art
03/16/18 11:58:14 AM
#36:


@s0nicfan is willing to tolerate such blatant corruption in government officials. Not much use in arguing with him
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s0nicfan
03/16/18 12:01:12 PM
#37:


Antifar posted...
s0nicfan posted...
Labour has seem content to play identity politics rather than focus on issues like the housing crisis and a jobs shortage, but it's possible they've changed their tune a bit.

I'm talking about the party under Corbyn and last year's election. The platform Labour put out for that election put workers front and center: https://labour.org.uk/manifesto/fair-deal-work/
https://www.yahoo.com/news/labour-apos-manifesto-shows-true-113911592.html


That's a great platform on paper, but if that's what Labour actually claims to stand for I haven't seen it lately from the actual members, especially not from Corbyn, at least as it relates to Question Time and public speaking. That may be more a factor of immigration being their hot topic right now, though.
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s0nicfan
03/16/18 12:01:43 PM
#38:


Doom_Art posted...
@s0nicfan is willing to tolerate such blatant corruption in government officials. Not much use in arguing with him


Doom I'm having a reasonable conversation with some people right now. Get your partisan hackery out of here if all you want to do is shitpost.
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Doom_Art
03/16/18 12:02:19 PM
#39:


And now he's deflecting to England because he can't address Mattis' corruption
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s0nicfan
03/16/18 12:03:10 PM
#40:


Doom_Art posted...
And now he's deflecting to England because he can't address Mattis' corruption


antfair posted...
Nobody on the board is being directly charged with doing anything.

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Doom_Art
03/16/18 12:04:19 PM
#41:


All I'm saying is we should probably drain the swamp by starting with stuff like this

Not sure why you're so tolerant of corruption all of a sudden
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TheCyborgNinja
03/16/18 12:04:47 PM
#42:


SK8T3R215 posted...
Patchwork posted...
SK8T3R215 posted...
Patchwork posted...
So, did he actually know the shit didn't work and then advocate it, or was he also being misled?


Most likely the latter since the article is basically a bunch of assumptions to find him at fault


That's what I figured.


Also it's a Vox article so you can assume it's exaggerated and poorly understood by the writer.

Yeah, that was my first thought. They don't try to conceal their bias in any way.
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foreveraIone
03/16/18 12:05:33 PM
#43:


yeah Matt Y is a dweeb

I don't take anything he says seriously
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s0nicfan
03/16/18 12:05:40 PM
#44:


Doom_Art posted...
All I'm saying is we should probably drain the swamp by starting with stuff like this

Not sure why you're so tolerant of corruption all of a sudden


When the charges show up we can talk. Until then...
antfair posted...
Nobody on the board is being directly charged with doing anything.

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ElatedVenusaur
03/16/18 12:16:58 PM
#45:


This is troubling, but there's no evidence to suggest it was anything more than a lapse in judgment. We all make mistakes.
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cerealbox760
03/16/18 12:20:09 PM
#46:


s0nicfan posted...

f*** off. You'd see the whole country burn to the ground just so you can say "I told you so". Half of Trump's cabinet is garbage, but Mattis was the architect behind the Syria airfield strike and has overseen the rapid victories against ISIS. He's exactly the kind of person we need in that position right now.

Im no Trump fan but I agree.
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SK8T3R215
03/16/18 12:20:39 PM
#47:


ElatedVenusaur posted...
This is troubling, but there's no evidence to suggest it was anything more than a lapse in judgment. We all make mistakes.


Its more of he was deceived like the investors were since Holmes was the Chairman of the Board and basically was the one of the two who communicated with the Board.
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