Are Meredith Perry and uBeam next?
And eventually Magic Leap
Theranos, CEO Holmes, and Former President Balwani Charged with Fraud
111–120 of 557 posts
Re: Theranos, CEO Holmes, and Former President Balwani Charged with Fraud
#112It's about time. Blatantly lying to investors is fraud and should be prosecuted as such. People who defraud others should face consequences for doing so.
Re: Theranos, CEO Holmes, and Former President Balwani Charged with Fraud
#113Ok, this is the money line in that press release for me: “The charges against Theranos, Holmes, and Balwani make clear that there is no exemption from the anti-fraud provisions of the federal securities laws simply because a company is non-public, development-stage, or the subject of exuberant media attention.” For all those entrepreneurs are trying to "fake it until you make it" be aware that the SEC considers your…
>For all those entrepreneurs are trying to "fake it until you make it" be aware that the SEC considers your strategy both fraudulent and they feel they have the jurisdiction to prosecute you. Holmes was, in many ways, embodying that HN mentality, acting on the basis: - that an entire industry has been doing it wrong - that it can be fixed by a low-bureaucracy, Angel-funded startup - that once you have enough success…
- dropping out is a positive thing (the implication being that education is either a scam or for dumb people, not smart people like us)
Re: Theranos, CEO Holmes, and Former President Balwani Charged with Fraud
#114You can commit most crimes in this world with relative impunity, but the number one rule is never steal from the rich.
I have seen this idea from time to time. I don't think it's right. The problem is they are stealing from people with abilities, smarts, and resources. Of course, there are going to be backlashes.
Re: Theranos, CEO Holmes, and Former President Balwani Charged with Fraud
#115Are Meredith Perry and uBeam next?
Didn't she sort of demonstrate that it worked? Or least that is the headline I read.
My (limited) understanding is that they've demonstrated a level of wireless power transmission, but nothing approaching some of the early hype that had things like mobile phones recharging in people's pockets whilst they were in a coffee shop.
The controversy there isn't whether you can transfer wireless power or not, but whether you can transfer enough in an easy enough way to make a practical consumer product.
If you want (alot) more detail this is a good thread to read http://www.eevblog.com/forum/projects/the-ubeam-faq/1175/
Re: Theranos, CEO Holmes, and Former President Balwani Charged with Fraud
#116There's often a thin line between "startup founder" and "confidence man".
No, there isn't often a thin line. Most founders are not out there committing massive fraud. They may be doing a lot of marketing, and are probably promising things that still have to be built, but they're not out there lying that they have millions in revenue from contracts that don't exist, or falsifying demos.
> Most founders
Often does not imply most nor does it mean that there must be massive levels of fraud such that the SEC has to be involved.
Re: Theranos, CEO Holmes, and Former President Balwani Charged with Fraud
#117Ok, this is the money line in that press release for me: “The charges against Theranos, Holmes, and Balwani make clear that there is no exemption from the anti-fraud provisions of the federal securities laws simply because a company is non-public, development-stage, or the subject of exuberant media attention.” For all those entrepreneurs are trying to "fake it until you make it" be aware that the SEC considers your…
>For all those entrepreneurs are trying to "fake it until you make it" be aware that the SEC considers your strategy both fraudulent and they feel they have the jurisdiction to prosecute you. Holmes was, in many ways, embodying that HN mentality, acting on the basis: - that an entire industry has been doing it wrong - that it can be fixed by a low-bureaucracy, Angel-funded startup - that once you have enough success…
She is too intelligent to have believed even half of these things, so I'm going with wilful deception.
Re: Theranos, CEO Holmes, and Former President Balwani Charged with Fraud
#118Ok, this is the money line in that press release for me: “The charges against Theranos, Holmes, and Balwani make clear that there is no exemption from the anti-fraud provisions of the federal securities laws simply because a company is non-public, development-stage, or the subject of exuberant media attention.” For all those entrepreneurs are trying to "fake it until you make it" be aware that the SEC considers your…
>For all those entrepreneurs are trying to "fake it until you make it" be aware that the SEC considers your strategy both fraudulent and they feel they have the jurisdiction to prosecute you. Holmes was, in many ways, embodying that HN mentality, acting on the basis: - that an entire industry has been doing it wrong - that it can be fixed by a low-bureaucracy, Angel-funded startup - that once you have enough success…
You can have all of those listed beliefs and still be honest about the actual state of your company, progress towards goals, etc. Doing so will probably beat those beliefs out of you, and you can come to an honest understanding of your limits.
Arrogant, presumptive behavior is annoying -- but I think it's important to keep a bright line between that and dishonesty, because one self corrects and the other doesn't. And, a pinch of presumption is necessary for exploration.
Re: Theranos, CEO Holmes, and Former President Balwani Charged with Fraud
#119So do those of us accused of sexism for not supporting Holmes a few years ago now get vindicated? Attacking her competence and questioning the Theranos Kool-Aid was seen as sexist and unfair, but it turns out we were right — she is a criminal — or at least a civil violator of securities law.
The accusations (at least the ones I made) were never about her guilt or innocence.
From what I remember, HN and similar just had dozens and dozens articles each week on this case, far more than for other, comparable cases. MtGox was around the same time, I believe.
My subjective impression was also that Holmes featured far more prominently in the articles and discussions than male CEOs in other cases.
Here is one commentator in this thread comitting all sorts of crimes against grammar to accentuate her gender: “The FBI should recommend charges for this Holmes lady.”
Edit: I just noticed the comment I cited was by the same user I was replying to :) I guess my sexism-radar is well-tuned today.
Re: Theranos, CEO Holmes, and Former President Balwani Charged with Fraud
#120I wonder if Holmes was male if she would be treated like Martin Shkreli and attacked in every horrible way possible. Don’t see much rhetoric against her.
Hoo boy, you are right, the world sure is hard for us white males. Discrimination lurks around every corner. I can't believe nobody realizes that ol Martin wasn't punished because he made a public ass of himself and openly mocked the justice department. It was because he was a white male.