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It Pays To Have Good PR: Compared to Jeff Skilling, Elizabeth Holmes Gets Slap On the Wrist for Outright Fraud

Posted by on | March 14, 2018 | Comments Off

Jeff Skilling was convicted of fraud and fined $50 million dollars and given 20+ years in jail.  Elizabeth Holmes — for fraud that is way more obvious and for which she is clearly directly accountable — will get no jail time, a fine of a half million dollars, loss of some voting shares in the company, and a ten year moratorium on being a director or officer of a public company.  From the SEC press release:

The complaints allege that Theranos, Holmes, and Balwani made numerous false and misleading statements in investor presentations, product demonstrations, and media articles by which they deceived investors into believing that its key product – a portable blood analyzer – could conduct comprehensive blood tests from finger drops of blood, revolutionizing the blood testing industry.  In truth, according to the SEC’s complaint, Theranos’ proprietary analyzer could complete only a small number of tests, and the company conducted the vast majority of patient tests on modified and industry-standard commercial analyzers manufactured by others.

The complaints further charge that Theranos, Holmes, and Balwani claimed that Theranos’ products were deployed by the U.S. Department of Defense on the battlefield in Afghanistan and on medevac helicopters and that the company would generate more than $100 million in revenue in 2014.  In truth, Theranos’ technology was never deployed by the U.S. Department of Defense and generated a little more than $100,000 in revenue from operations in 2014.

These are only the highlights of the many, many repeated knowingly grossly fraudulent statements made by Holmes over a span of several years, and this does not even include her harassment of whistle blowers who tried to go public with the fraud.  This isn’t a case of creating an offshore JV that shifted some debt off the balance sheet — its the case of lying blatantly about the company’s technology and financials for years and years.

 It Pays To Have Good PR:  Compared to Jeff Skilling, Elizabeth Holmes Gets Slap On the Wrist for Outright Fraud  It Pays To Have Good PR:  Compared to Jeff Skilling, Elizabeth Holmes Gets Slap On the Wrist for Outright Fraud  It Pays To Have Good PR:  Compared to Jeff Skilling, Elizabeth Holmes Gets Slap On the Wrist for Outright Fraud

 It Pays To Have Good PR:  Compared to Jeff Skilling, Elizabeth Holmes Gets Slap On the Wrist for Outright Fraud

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