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posted by martyb on Wednesday January 05 2022, @04:23AM   Printer-friendly
from the the-harder-they-fall dept.

Elizabeth Holmes Found Guilty on 4 of 11 Charges

Elizabeth Holmes found guilty on 4 of 11 charges:

Elizabeth Holmes was convicted today of three counts of criminal wire fraud and one count of criminal conspiracy to commit wire fraud. The jury delivered its verdict after six days of deliberation.

The government's victory in the case is a rare rebuke for tech startups, which often pitch investors on their technological prowess and business acumen using wildly optimistic assumptions.

Theranos was, perhaps, an extreme example, raising over $900 million on the back of claims that its proprietary tests were better, cheaper, and less invasive than the competition. None of those claims was true, and unlike many other Silicon Valley startups, the health and safety of patients was on the line.

Holmes was found guilty of defrauding Lakeshore Capital Management (the family office of the DeVoses) of $100 million, PFM Healthcare (a hedge fund) of $38 million, and an LLC connected to Daniel Mosley (Henry Kissinger's former estate attorney) of $6 million. She was also convicted of conspiracy to commit wire fraud against Theranos investors more generally. On three charges, all alleging wire fraud against investors, the jury returned no verdict. Holmes was acquitted of all other charges, including those that involved defrauding patients. She faces up to 20 years in prison.

With the guilty verdict, Holmes, the founder of the company, is the first Theranos executive to be held criminally responsible for her actions, though she may not be the last.

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  • (Score: 2) by Beryllium Sphere (r) on Wednesday January 05 2022, @05:12PM (2 children)

    by Beryllium Sphere (r) (5062) on Wednesday January 05 2022, @05:12PM (#1210175)

    There's a detailed algorithm of points and charts to arrive at a recommended sentence. It's possible for a judge to override that and show favoritism toward a woman but it would show.

    One former US attorney whose blog I follow estimated that the recommended sentence will be somewhere in the range 15-20 years.

    I'm interested in criminal justice reform and I'd enjoy looking at the research you mentioned. In general, women and men get into prison from very different paths and I'm full of curiosity how the researchers controlled for all other factors and still had a sample left over.

    Starting Score:    1  point
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    Total Score:   2  
  • (Score: 0) by Anonymous Coward on Wednesday January 05 2022, @11:25PM

    by Anonymous Coward on Wednesday January 05 2022, @11:25PM (#1210333)
  • (Score: 0) by Anonymous Coward on Thursday January 06 2022, @01:22AM

    by Anonymous Coward on Thursday January 06 2022, @01:22AM (#1210384)

    Recommendations don't mean shit. It will all come down to what the judge decides to do, which can vary widely.