Theranos, CEO Holmes, and Former President Balwani Charged with Fraud

Post by onecooldev24 » Wed, Mar 14, 2018, 8:28 PM UTC

mikeyouse wrote: post #242

rb808 wrote: post #44

Earlier quoted context omitted.

You dont really think a working class Albanian would get treated the same as a well connected blonde woman do you? This is America here. Shkreli got convicted because he was running "Ponzi Scheme" where no one lost money. Figure that one out.

If you rob a bank and then go to a casino and bet it all on 'Black', you're not absolved of that original crime if Black hits and you pay back the bank. Shkreli lied to his investors (he claimed he had $55M under management when it never surpassed $6M), produced false financial statements, told prospective investors that his original investors had doubled their money (when they actually lost everything), raided the f…

Post by ericd » Wed, Mar 14, 2018, 8:30 PM UTC

spaceflunky wrote: post #325

mathattack wrote: post #212

Earlier quoted context omitted.

This will wipe her out, and likely kill her career. Remember, this is just the SEC. The pain they inflict is commensurate to investor pain. The government still should go after them for endangering people’s lives. There should be long jail terms for that.

>This will wipe her out Will it though? Surely Holmes still has a few million stashed away somewhere that she can live comfortably off of? This settlement isn't going to leave her destitute. Either that or I'm sure she set up some clever offshore accounting structure that has $10M stashed in the cook islands or some shit. As soon as you get some cash, I think "rich person 101" is you set up some complicated structure…

Post by jbellis » Wed, Mar 14, 2018, 8:32 PM UTC

icantdrive55 wrote: post #301

nathanaldensr wrote: post #2

Theranos and Holmes have agreed to settle the fraud charges levied against them. Holmes agreed to pay a $500,000 penalty, be barred from serving as an officer or director of a public company for 10 years, return the remaining 18.9 million shares that she obtained during the fraud, and relinquish her voting control of Theranos by converting her super-majority Theranos Class B Common shares to Class A Common shares. Du…

Not in my opinion. I remember those interviews, with the black turtle necks. She was playing the part of genius, but looked full of it, especially with all the secrets. She is basically being fined $500,000. This is pocket change. I imagine so much money is hidden. This hidden money just might be the next fraud charge? "Bared from hiring as an officer, or director for 10 years." She will get hired on somewhere under…

Post by paul7986 » Wed, Mar 14, 2018, 8:34 PM UTC

Post by Sangermaine » Wed, Mar 14, 2018, 8:38 PM UTC

mbell wrote: post #209

ChuckMcM wrote: post #23

Ok, 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…

"fake it until you make it" generally refers to the product implementation vs pitch on the consumer side. e.g. You pitch "The best automated way to do X!", but in actuality you have a horde of people doing the work initially to figure out the problem before building the actual automation. There is nothing wrong with this and remains a completely viable approach. What you don't do is tell your investors you've already…