Submitted via IRC for BoyceMagooglyMonkey
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: 4, Informative) by Gaaark on Sunday June 17 2018, @10:22PM (11 children)
"face a maximum prison sentence of 20 years, a $250,000 fine and restitution for each count of wire fraud."
So, they'll get what... 4 days and pay up in sticks of chewing gum?
"Fine?"
"Yeah. That's fine."
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(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.
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(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.
(Score: 2) by darkfeline on Monday June 18 2018, @07:37AM (1 child)
That's "for each count". So taking the reporting at face value, that means a maximum of 180 years and $2.25 million fine plus restitution, and that's not counting the conspiracy charges.
Of course, I wouldn't be surprised either if it got negotiated down to something more mundane, or if there are some other maximum limits on fraud sentences.
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(Score: 0) by Anonymous Coward on Monday June 18 2018, @02:33PM
There is exactly zero probability that, if convicted on all counts, the absolute statutory maximum sentence will be received. That is because sentencing in the US does not work like that [popehat.com].
(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 ---