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Elizabeth Holmes steps down as Theranos CEO as DOJ levels charges
CNBC is reporting that Elizabeth Holmes has stepped down from her position as CEO of Theranos and the Department of Justice has indicted her on alleged wire fraud. Both the company and Holmes have been embroiled in scandal following reports that the blood tests it claimed to be working on weren't actually effective. Earlier this year, the Securities and Exchange Commission charged Holmes and Theranos with fraud.
[...] Along with Holmes, Ramesh "Sunny" Balwani, former president of Theranos, is being charged by the DOJ as well. Both Holmes and Balwani appeared before US Magistrate Judge Susan van Keulen today where they were arraigned on nine counts of wire fraud and two counts of conspiracy to commit wire fraud. [...] CNBC reports that Holmes will still chair Theranos' board and the company's general counsel, David Taylor, has been appointed CEO. If convicted, Holmes and Balwani face a maximum prison sentence of 20 years, a $250,000 fine and restitution for each count of wire fraud.
(Score: 5, Insightful) by PartTimeZombie on Sunday June 17 2018, @11:13PM (6 children)
I was assuming they will go away for a long time, as the "victims" are all wealthy, powerful white people who have senior politicians as friends, and probably want to send the message that nobody should try to steal from wealthy "investors"*.
* In quotes because if you couldn't see this was a con long, long ago then you are just a rube.
(Score: 5, Insightful) by frojack on Sunday June 17 2018, @11:35PM
Chump change to the wealthy "victims" (Who probably were in on the scam anyway).
Few months in Camp Fed, probation and maybe some minimal fine. The poor woman CEO was duped by the male technical experts. (sob).
No, you are mistaken. I've always had this sig.
(Score: 0) by Anonymous Coward on Sunday June 17 2018, @11:36PM (2 children)
"* In quotes because if you couldn't see this was a con long, long ago then you are just a rube."
*
*
*
Of course the con was painfully obvious to many of us, but it's worth noting that there are many people who either don't actually use the intelligence they do have, or perhaps they aren't that intelligent, period. Add to that the very real phenomenon that greed can and does blind people to what would be "red flags", and it's easy to see how con artists are often able to succeed when they prey on certain subsets of the population.
It's best to go with your gut instinct on such matters and never forget the "if it seems too good to be true it is probably a scam" principle.
(Score: 3, Informative) by PartTimeZombie on Sunday June 17 2018, @11:58PM (1 child)
Frojack pointed out above that the "victims" may well have been in on the con which might be true, as there are tax breaks for loses aren't there?
(Score: 2) by darkfeline on Monday June 18 2018, @07:41AM
I'm pretty sure there are better ways to get tax breaks without throwing the money away. Since we don't have a 100% tax bracket, you're going to be strictly losing more money than what you save from the tax break, unless that money somehow got funneled into secret assets somewhere.
Join the SDF Public Access UNIX System today!
(Score: 1, Insightful) by Anonymous Coward on Monday June 18 2018, @02:28AM
What about the Important Connected Wealthy People they had assembled on the board of directors? Any chance they will have to face justice?
However, Tyler Shultz, grandson of Reagan's secretary of state, wasn't content to be a pretty face, he loudly warned that Theranos was a scam.
(Score: 2) by Fluffeh on Monday June 18 2018, @03:27AM
That's totally the way I saw it too. Steal $100 from a thousand suckers and you're gutter scum not really worth anyone's time. Steal $100k from a politician and you are in the crosshairs of all the three-letter agencies.