The Ongoing New Financial Era Thread

psu_dad
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Re: The Ongoing New Financial Era Thread

Postby psu_dad » Fri Jun 15, 2018 5:47 pm

Elizabeth Holmes, Theranos founder and CEO, 2015:

TIME magazine list of "Most Influential People in the World"
Forbes magazine list of the "Most Powerful Women"
Glamour magazine "Woman of the Year"
Fortune magazine "Businessperson of the Year"
Horatio Alger Award

Elizabeth Holmes, Theranos founder and CEO, 2018:

The U.S. Attorney's Office in the northern district of California has indicted Theranos founder Elizabeth Holmes and former chief operating officer Ramesh "Sunny" Balwani for allegedly defrauding investors and doctors. They were charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud.

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Blue&White
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Re: The Ongoing New Financial Era Thread

Postby Blue&White » Fri Jun 15, 2018 6:20 pm

This wasn't really news, though. You knew this was coming. She had been outed as a fraud some time ago and the SEC and DOJ have been digging into her for a while. It was a matter of time before this happened.
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psu_dad
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Re: The Ongoing New Financial Era Thread

Postby psu_dad » Fri Jun 15, 2018 6:40 pm

She settled with the SEC a few months ago. Paid a huge fine, returned a bazillion shares of stock and relinquished control of Theranos. I kinda/sorta thought that was it. I didn't know she was being fitted for orange pajamas.
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Blue&White
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Re: The Ongoing New Financial Era Thread

Postby Blue&White » Fri Jun 15, 2018 6:57 pm

I didn't either but I'm not shocked. Nor am I upset. We throw poor people in jail for years for selling dime bags of weed. White collar criminals we let off with a slap on the wrist.

Her mistake was not being a large financial institution that donates shit tons of money to political candidates.
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psu_dad
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Re: The Ongoing New Financial Era Thread

Postby psu_dad » Sat Jun 16, 2018 7:59 am

It might be better were she were committed to a psychiatric facility.

I saw Jim Kramer (speaking of lunatics) interview her when the WSJ story broke and this all first began to unravel. I wasn't a Psych major, but she came off as totally unhinged. Not in a wild hysterical way, but in a calm sociopath way. Like Norman Bates when he wasn't dressed up like his mom. And she spoke in this bizarre baritone voice, which insiders claim was something she affected for her public persona. Perhaps she thought it gave her gravitas. She calmly dismissed the WSJ story as a combination of misunderstanding and outright falsehoods, all the while flashing a pair of World-Class Crazy-Chick Eyes. It was mesmerizing.

As for the recent indictment, If she pleads insanity and I'm on the jury, she might have a shot.
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Blue&White
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Re: The Ongoing New Financial Era Thread

Postby Blue&White » Sat Jun 16, 2018 9:32 am

If they go for the death penalty and I'm on the jury, they will likely get it.

The focus on this woman and her company has been mostly on the investor fraud with some small amount of attention to the doctors and patients who were defrauded because they used here bullshit tests. But, what about the people who relied on them for accuracy? What about people who had blood tests with them and then had doctors make clinical diagnosis and suggest a course of treatment - or not treatment - because of this bullshit technology.

The financial fraud is the least of the impacts of what this bitch did. And if anyone died because of this then I hope she faces manslaughter charges for every time that may have happened. Screw her. Let her spend the rest of her spoiled life rotting in a cell.
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psu_dad
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Re: The Ongoing New Financial Era Thread

Postby psu_dad » Sat Jun 16, 2018 12:44 pm

But, what about the people who relied on them for accuracy?

The WSJ staffer who broke the story (John Carreyrou) and wrote a book (soon to be a movie) believes Holmes' fundamental mistake was treating her company like a Silicon Valley tech startup. Exaggerating capabilities is pretty common in that world in order to get financing. Her idol (Steve Jobs) was a master BS artist. There's even a Silicon Valley expression for this: "Fake it until you make it."

The problem is that if you're designing a new internet browser or a restaurant take-out ordering app for a smartphone no one is going to get hurt except investors if you can't deliver on your BS. Theranos wasn't just tech, it was medical tech. Once they contracted with Walgreens, they crossed a very serious line. Carreyrou believes that's the main reason the DOJ went after them. He claims there are several Silicon Valley types who have duped investors with exaggerated claims over the years and not been indicted by the DOJ, but no one's health was at stake in those instances.
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Blue&White
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Re: The Ongoing New Financial Era Thread

Postby Blue&White » Sat Jun 16, 2018 12:52 pm

That's consistent with my feelings on the topic. Venture capitalists are in a position to research a firm before they invest. And, investors in general have a lot of protections and recourse. Customers have far fewer protections and recourse. And, when it comes to medical, it gets really hairy.

Your point is exactly right - when she started having real people rely on this bullshit test for medical diagnoses it crossed a serious line. And, she should have known that. Real lives were impacted and we may never know how badly.

She should be in jail.
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psu_dad
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Re: The Ongoing New Financial Era Thread

Postby psu_dad » Sat Jun 16, 2018 7:44 pm

Ramesh Balwani's attorney categorized Theranos as a "business failure" rather than a fraud case, and added that his client is looking forward to the trial to clear his name.

Dude. I admire the bravado, but seriously. Get real.

Your client wasn't indicted by the District Attorney of Santa Clara County. He was indicted by the United States Department of Justice. They've been building their case for over 2 years. And all those employees you fired over the years because they wouldn't "play ball"? God knows how many of them have been deposed. Your client is not looking forward to the trial. Your client is crying himself to sleep at night worrying about the prospect of Federal PMITA Prison.
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Re: The Ongoing New Financial Era Thread

Postby Blue&White » Tue Jun 19, 2018 7:51 am

43% of households can't afford basics.

This is a problem that has been years in the making and it's going to get worse. And, we are all going to pay for it.
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