Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

sec.gov

Post reply on HN
Print view View original

91–100 of 557 posts

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

#91

Post by saas_co_de »

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…

Settlement is probably best for investors because they immediately get control of the company and Holmes basically gets nothing.

The job of the SEC is to protect investors so they are probably doing the right thing here.

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

#93

Post by artursapek »

megadeth wrote: post #7

Won’t see a day of jail time while Shkrelli gets 7 years.

While I see the same distinction and it's hard to watch, we can enumerate Shkreli's mistakes:

1. giving the finger to Congress

2. refusing to settle and going to court

3. talking shit the entire time he was on trial, both to court journalists and on TV ("junior varsity", etc.)

4. offering money for Clinton's DNA while on bond shortly after she lost the most embarrassing election of all time (while hilarious and obviously satire, of course "they" used this against him)

And I'm sure someone else could add to my list. Meanwhile, I don't even know what Holmes looks like, let alone what her voice sounds like.

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

#94

Post by fwdpropaganda »

oculusthrift wrote: post #66
FussyZeus wrote: post #48

Earlier quoted context omitted.

Unless of course you steal Holmes' car. Then you'll probably be killed, or at best, incarcerated for 10 years. Remember kids, the rich are not playing the same game the rest of us are.

It helps when you’re the opposite of a black male.

My opinion: if you think this is about race and gender (as opposed to about wealth and power) you're being played.

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

#96

Post by bllguo »

_m8fo wrote: post #85
DannyBee wrote: post #62

People keep complaining about lack of jail time. As has been repeated in a number of subcomments: The SEC cannot send people to jail. Full stop. They have only civil authority. They refer criminal cases to the US attorneys/DOJ, and offer assistance. All evidence suggests they did so here. The decision to criminally prosecute or not is out of their hands.

Why can't the SEC send people to jail? I don't understand the point you're making. If people believe something is an injustice should they just shut up? Even if they can't send people to jail people should complain if they feel that shouldn't be the case -- it's a signal that perhaps the current process is wrong. After all, all restrictions and rules were created by us to begin with. Complaining can be useful feedbac…

they don't have the authority to do that...

yes, people should inform themselves before talking. Jail time and other penalties will depend on the Justice Department

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

#98

Post by Bud »

_m8fo wrote: post #85
DannyBee wrote: post #62

People keep complaining about lack of jail time. As has been repeated in a number of subcomments: The SEC cannot send people to jail. Full stop. They have only civil authority. They refer criminal cases to the US attorneys/DOJ, and offer assistance. All evidence suggests they did so here. The decision to criminally prosecute or not is out of their hands.

Why can't the SEC send people to jail? I don't understand the point you're making. If people believe something is an injustice should they just shut up? Even if they can't send people to jail people should complain if they feel that shouldn't be the case -- it's a signal that perhaps the current process is wrong. After all, all restrictions and rules were created by us to begin with. Complaining can be useful feedbac…

Because it does not have the authority to do so.

https://www.sec.gov/oiea/investor-alerts-bulletins/ib_invest...

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

#99

Post by walrus01 »

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 till you make it" is one thing if your product is a new dating app to compete with grindr, or a clone of flappy bird... entirely another thing if you're making tangible claims about the ability of a medical device.

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

#100

Post by _m8fo »

Bud wrote: post #98
_m8fo wrote: post #85

Earlier quoted context omitted.

Why can't the SEC send people to jail? I don't understand the point you're making. If people believe something is an injustice should they just shut up? Even if they can't send people to jail people should complain if they feel that shouldn't be the case -- it's a signal that perhaps the current process is wrong. After all, all restrictions and rules were created by us to begin with. Complaining can be useful feedbac…

Because it does not have the authority to do so. https://www.sec.gov/oiea/investor-alerts-bulletins/ib_invest...

I've already read that -- it does not explain why. It simply states that it cannot. What law restricted it? Why was that law put into place? How often are recommendations for prosecution followed up on successfully?

EDIT: Thanks everyone for the information -- very interesting.

Post reply on HN