GUILTY: Theranos' Elizabeth Holmes has been convicted of fraud of over $140 million!!

She didn't do anything different from every other silicon valley start-up.

Ms. Holmes indeed do something different than the standard silicon valley start-up. Let me state the obvious - she was dealing with health care technology - you know - where a false test result can result in loss of life, illness or injury. If some software as a service platform doesn't work, sure, investors are disappointed or worse, but look, those investors typically understand the kind of risk profile at hand. But really, putting out unreliable (or worse) test devices and accordingly unreliable results into the medical community? An entirely different level of chutzpah.

One of the things I found fascinating about this case is that one of the early whistleblowers was George Schulz's grandson, a then recent Stanford grad, with Schulz sitting on the board of advisors. This kid knew what was going on was wrong, and kudos to him for raising it, facing not only the retaliation of his employer (which he did) but also from his family.

Too wealthy and attractive for prison. Media loves this story so they can show her picture again

This shouldn’t surprise you. White collar criminals get off easy often. Rick Scott oversaw the largest Medicare fraud scheme in history. Years later, the company is still going strong and he becomes governor of Florida!

Cute and innocent looking keeps you out of jail every time.

I'm betting $100 that this was posted by rojo.

Rojo, I agree the claims against her are substantial, but your generally egregious and obtuse position on many social issues makes me think you're only obsessed with this issue because you enjoy seeing a woman in power fail.

Racket wrote:

Rojo, I agree the claims against her are substantial, but your generally egregious and obtuse position on many social issues makes me think you're only obsessed with this issue because you enjoy seeing a woman in power fail.

When I read his post, I wondered what his angle was. Was it because he didn't agree with her politically? He perceived her to be a "liberal"? I'm not defending her, but I do think there is some basis for his interest in this case which he did not disclose. He'll never tell us the full story, but there is a method to his madness.

Her "company"'s board was filled old white men. Their intent was to use her--woman-owned, small business--to get favorable defense contracts. As ugly as this is, she and her board will be home free. Congressional republicans, and many democrats, are loathe to put their own kind behind bars--using a woman as a pawn to make money is a game they all want to play after they retire from CON-gress.

Yeah I don't get this either. Martin Shkreli just got several years in prison for defrauding his investors, who didn't even lose money! Whereas Elizabeth Holmes defrauded her investors, lied to regulatory agencies, put people's lives at risk, created hostile working environments for her employees... and it's business as usual?

I've been obsessed with this case too, because it's such an extreme example of how ridiculous silicon valley has become and how far corruption and greed can take you in this country. The entire premise of the company is built on a lie, why is it allowed to continue? How is she not in prison? Why was this behavior basically condoned and accepted as fait accompli?

When I read the headline (I saw it on my google news feed before letsrun), I actually laughed out loud when I saw the fine. She used to be worth a billion dollars. Right now she's probably worth a few hundred million because of her fraudlent company. And they're fining her 500,000? That's less money for her than a parking ticket would be for me. It's totally outrageous.

I thought regulations were bad.

Let markets be free! Now regulation is good?

It's pretty crazy banks can make billions on money laundering like HSBC and no one minds. This person fleeces a few investors and she's public enemy #1.

Racket wrote:

Rojo, I agree the claims against her are substantial, but your generally egregious and obtuse position on many social issues makes me think you're only obsessed with this issue because you enjoy seeing a woman in power fail.

DING DING DING. Rojo is a closet misogynist as well as racist- no surprise but funny he out himself so often. I guess daddy's money is enough he won't ever have to work again.

That said, this woman was definitely up to no good but not in any exceptional way; she might even be small and relatively ill-connected enough to take to trial (though I bet they settled), compared to the SEC ludicrous non-action in many many many many MANY other cases.

Rojo, what's your favorite Thomas Carlyle book?

wafasfasdf wrote:

Yeah I don't get this either. Martin Shkreli just got several years in prison for defrauding his investors, who didn't even lose money! Whereas Elizabeth Holmes defrauded her investors, lied to regulatory agencies, put people's lives at risk, created hostile working environments for her employees... and it's business as usual?

Shkreli case and sentencing were ridiculous, he * is * a scapegoat but one has to admit he gave the prosecutors every opportunity to slam him- and they did. Especially on the pharma side, nothing is changing but the low IQ set were cheering for "vengeance." His going down is meaningless though again, he basically dared the Feds again, and again, again so... he dug that whole himself.

Just today wondered again why she hasn't faced criminal charges, along with her co-conspirators.

Good to see the post. She's pretty much the most egregious fraud out there - just because she suckered a lot of people that should have known better doesn't mean she shouldn't be criminally prosecuted.

Female privilege.

Old White Men wrote:

Her "company"'s board was filled old white men. Their intent was to use her--woman-owned, small business--to get favorable defense contracts.

This is common-place practice. E.g., almost all construction companies are technically female/black-owned in places like Atlanta, to allow them an extra 10-15% big margin in projects (govt money of course the big ticket).

I too am shocked by this sweetheart deal. Screams criminal behavior. One possible reason is that the VCs who invested in it know it’s a zero and don’t want to force prosecution because it would expose the absolute lack of due diligence they performed on this investment. There’s no upside and in fact considerable reputational downside should they force the issue. So she skates. There was a reason many of the big VCs passed here — nothing could be confirmed. The ones who invested were taken in by a story and by the belief that the pretty girl couldn’t be a scammer. A little like Madoff on that count

I am more upset that Toys R Us is going out of business

I'll show you the IPs. My post is from Baltimore. Other post is from DC. No I didn't drive down there to win a $100 bet.

You think I"m starting a thread and then replying to it under a fake name? Why wouldn't I just post under my name? I could understand if it was a running related topic but this?