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SEC Charges Elizabeth Holmes with “Massive Fraud” but Says She Can Head a Public Company in 10 Years

amirm

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#2
Can't believe two things:

1. She did not get serious jail time.

2. They waited this long to give her this light sentence.

She wasted $700 million of investor money and all he gets is $0.5M fine? Hopefully she gets sued personally by the investors and gets more punishment.
 

amirm

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#3
Looks like there may be justice after all: http://money.cnn.com/2018/06/15/technology/elizabeth-holmes-indicted-theranos/index.html

Theranos founder Elizabeth Holmes has been indicted on federal wire fraud charges, the office of the United States Attorney for the Northern District of California announced Friday.
Holmes and former Theranos COO and president Ramesh "Sunny" Balwani allegedly engaged in a multi-million dollar scheme to defraud investors, as well as a scheme to defraud doctors and patients, according to a release from the US Attorney's office.​
Holmes and Balwani are charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud. The indictments happened Thursday and were unsealed on Friday. If convicted, they each face a maximum sentence of 20 years in prison and a fine of $250,000, plus restitution for each count of wire fraud and each conspiracy count, according to the US Attorney's office.​
 

RayDunzl

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#4
Can't believe two things:

1. She did not get serious jail time.

SEC may not have the jurisdiction to put people in jail (directly).

https://www.sec.gov/about/offices/oia/oia_enforce/overviewenfor.pdf

"In a civil enforcement action filed in a United States District Court, the Commission can obtain a court order enjoining an individual from further violations of the securities laws, disgorgement of any money obtained from the illegal conduct, and in some circumstances, civil penalties."

"Criminal enforcement of the federal securities laws is done through the U.S. Department of Justice and the individual U.S. Attorney's offices throughout the country. The Division provides assistance to United States Attorneys throughout the country by, among other things, providing access to Commission investigative files and assigning Commission staff to assist those offices as Special Assistant U.S. Attorneys. A defendant in a criminal securities fraud prosecution may be subject to both criminal fines and prison. "
 

amirm

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#5
What is amazing is how gullible she takes investors. This is from just five days ago: http://www.businessinsider.com/theranos-founder-elizabeth-holmes-new-startup-report-2018-6

Theranos founder Elizabeth Holmes is reportedly seeking Silicon Valley investors for a new company

The word is that Elizabeth Holmes is looking to raise money for a new startup.

The 34-year-old founder and CEO of the embattled blood-testing startup Theranos is courting Silicon Valley investors in hopes of forming a new company, according to a Vanity Fair interview with the author John Carreyrou.

Carreyrou, the Wall Street Journal reporter who first revealed Theranos had misled the public about its blood-testing product, didn't disclose what the new startup was or whom Holmes was meeting with.
 

RayDunzl

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#6
Well, sometimes ya just don't learn yer lesson on the first fuckup.
 

FrantzM

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#7
Hi
As usual I learn from this board as I didn't know that the SEC wasn't able t put someone directly in jail ... anyhow this perhaps OT but I can't stop from ranting so .. here I go:

Start of rant :D

I remain amazed at how gullible intelligent, educated folks often can be. If one needs any proof of that just look at people investing upward of $100,000 for the basic cabling of a stereo system ... We are after all witnessing day in and day out people extolling the virtue of their new $5000 USB (!!!!???!!!) cable or their $10,800 HDMI cable (!!!WTF!!! WTF!!! WTF !!!!!!)
In this light, one can understand that people would invest with crooks. We are at an inflection point where people can lie in your face and yet enjoy great power. Facts seem to no longer matter only perception. We have people that are famous for doing nothing else than .. being famous!!!

End of rant.

She will get her day in court and the proverbial slap on one of her finger. The public will quickly forget how crooked she is and promptly move on to the next news, that of perhaps Kim Kardashian West running for some public office and actually being elected...
 
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