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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: 0) by Anonymous Coward on Monday June 18 2018, @11:34PM (1 child)
There's an elaborate points-and-charts system that makes recommended sentences longer for large amounts stolen, for failure to admit responsibility or show remorse, and for being in a leadership role in a conspiracy. About all she's got going for her is no prior convictions. So, not 20 years, but not short if the judge stays close to guidelines.
She'll have a good chance at a minimum security camp, not the worst thing but featuring expired and moldy food, verbal abuse, and terrifyingly bad medical "services". I hiss when people say "Club Fed" -- it is something I would wish on my worst enemy.
(Score: 2) by Gaaark on Tuesday June 19 2018, @12:33AM
https://www.washingtonpost.com/news/reliable-source/wp/2015/01/05/what-its-really-like-inside-club-fed-prisons/?noredirect=on&utm_term=.f128e32c5ef3 [washingtonpost.com]
--- Please remind me if I haven't been civil to you: I'm channeling MDC. ---Gaaark 2.0 ---