Here's a television parody I wrote about Theranos that ends right where this story begins... http://pricks.com
Theranos Is Subject of Criminal Probe by U.S
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Re: Theranos Is Subject of Criminal Probe by U.S
#22Investigators are also examining whether Theranos misled government officials, which can be a crime under federal law, some of the people said.
Such subpoenas don’t necessarily mean prosecutors are actively seeking an indictment. People familiar with the matter said the investigation is at an early stage.
In addition to the criminal probe, the Securities and Exchange Commission is examining whether Theranos made deceptive statements to investors when it solicited funding, according to people familiar with the matter. Theranos was valued at $9 billion in a funding round in 2014 and the majority stake of Elizabeth Holmes, the startup’s founder and chief executive, at more than half that.
Has there been any other examples of such high profile entrepreneurs ending up at the wrong end of a criminal investigation?
Re: Theranos Is Subject of Criminal Probe by U.S
#23Earlier quoted context omitted.
The SEC is getting more aggressive about regulating large pseudo-public companies that haven't had a formal IPO, but which have many "qualified" investors.[1] Mutual funds now invest in these companies, which means ordinary investors are at risk. The SEC chair on "unicorns": "It is axiomatic that all private and public securities transactions, no matter the sophistication of the parties, must be free from fraud. Exch…
"tough on Unicorns" :) The plight of Theranos has just become much worse as they will probably be made an example of.
My money is still on the CEO and board of investors bailing out on golden parachutes to whatever their next horrendous executive appointment will be.
Re: Theranos Is Subject of Criminal Probe by U.S
#24non-paywall link: http://on.wsj.com/1VyFPIt
Much appreciated
Re: Theranos Is Subject of Criminal Probe by U.S
#25Investigators are also examining whether Theranos misled government officials, which can be a crime under federal law, some of the people said.
Such subpoenas don’t necessarily mean prosecutors are actively seeking an indictment. People familiar with the matter said the investigation is at an early stage.
In addition to the criminal probe, the Securities and Exchange Commission is examining whether Theranos made deceptive statements to investors when it solicited funding, according to people familiar with the matter. Theranos was valued at $9 billion in a funding round in 2014 and the majority stake of Elizabeth Holmes, the startup’s founder and chief executive, at more than half that.
Has there been any other examples of such high profile entrepreneurs ending up at the wrong end of a criminal investigation?
Re: Theranos Is Subject of Criminal Probe by U.S
#26Here's a television parody I wrote about Theranos that ends right where this story begins... http://pricks.com
that's a more noble use of that domain than anyone could have predicted.
Re: Theranos Is Subject of Criminal Probe by U.S
#27The news release issued when the Walgreens deal was announced said consumers “will be able to access less invasive and more affordable clinician-directed lab testing, from a blood sample as small as a few drops, or 1/1,000 the size of a typical blood draw.”
As part of the deal, Walgreens has invested at least $50 million into Theranos, according to people familiar with the matter.
It really blows my mind that Theranos was able to get this far with what sounds like technology that simply didn't work. Did any investors simply try the test(s) before investing vast sums of money?
Re: Theranos Is Subject of Criminal Probe by U.S
#28Theranos' tragic flaw was not even so much that they were hyped to the moon and back, but that they believed their own hype.
Re: Theranos Is Subject of Criminal Probe by U.S
#29Always fun to go back in time and look at what people were saying about Elizabeth Holmes and Theranos, like 2 years ago:
https://news.ycombinator.com/item?id=7951019
or
https://news.ycombinator.com/item?id=8181339
I find it insightful to see who was "right" and who was "wrong". There were a surprising number of people from the medical field expressing doubts about the technology.
Re: Theranos Is Subject of Criminal Probe by U.S
#30What happens if the investors were not mislead? Is this probe a move by the big investors to cover their ass in the case that Theranos is found to have defrauded customers?