SEC charges Theranos CEO Elizabeth Holmes with elaborate fraud

[n2doc]

By Washington Post Staff March 14 at 12:45 PM

The SEC said Holmes and former company president Ramesh “Sunny” Balwani raised more than $700 million from investors as part of an “elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business, and financial performance.” The agency said the executives agreed to settle the charges, with Holmes losing control of the company, giving up millions of shares and suffering other sanctions.

Theranos, a blood-testing startup that promised to revolutionize consumers’ access to their medical information, was a Silicon Valley darling once valued at $9 billion. Holmes was seen as one of the country’s most promising young entrepreneurs as a college dropout turned chief executive who had assembled a company board filled with powerful ex-government and military leaders. Holmes and her company fell from grace in a snarl of regulatory problems and revelations that its technology was not being used in blood tests.

This is a developing story. It will be updated.

https://www.washingtonpost.com/news/business/wp/2018/03/14/sec-charges-theranos-ceo-elizabeth-holmes-with-elaborate-fraud-marking-fall-of-darling-silicon-valley-company/?tidr=a_breakingnews

Another Scammer

[MineralMan]

1. Elizabeth Holmes Caught My Attention Very Early

She quickly became the darling of many, as her unusual style and energy began to promote Theranos. I don't remember the first article I saw about her and her company, but it was very early in her entrepreneurial journey.

I remember thinking, "Really?" at the time. It was sort of a too-good-to-be-true sort of thing. I looked at the technology, and immediately identified it as either a wonderful breakthrough or a complete bogus thing. I couldn't decide.

So, I followed her through many articles. The more I saw articles focusing on her rather compelling personality and, yes, appearance, the more skeptical I became.

About three years ago, I wrote her and Theranos off as yet another Blue Sky scam. Not too long after that, her star began to fade. The depth of her long con was unraveling.

Looks like it has now completely unraveled, and now I'm interested again. How will she land? What's her next move? Elizabeth Holmes is an interesting character, and well worth keeping track of.

[mythology]

2. She belongs in jail

Medical frauds, no matter how bright their star, deserve nothing better.

[MineralMan]

3. No doubt. But, I don't think it'll happen.

I could be wrong, though.

[dalton99a]

4. Too pretty, young, and blonde for prison

apparently

[mythology]

5. Tom Brady isn't young or blonde and he's not in jail

For selling concussion proofing water (which isn't a thing) or advising people that drinking water will prevent sunburn (it won't ). Nor is his piece of shit business partner who sold millions of dollars worth of snake oil he claimed would cure cancer, MS, AIDS and other major health issues.

There should be a special level of jail for people who scam the desperate on health care. Unfortunately our criminal justice system only goes hard on the criminal class that is most likely to be poor and/or minorities.

[TexasTowelie]

6. $500,000 fine and barred 10 years from serving as a corporate officer

along with forfeiting shares in the company.

https://www.sfgate.com/business/article/Theranos-founder-to-pay-500-000-to-settle-12753129.php