Convicted of fraud, Elizabeth Holmes, founder of start-up Theranos, gets 11 years in prison

πŸ‡§πŸ‡· I assume my responsibilities for Theranos πŸ‡§πŸ‡·πŸ‡§πŸ‡· On Friday, Elizabeth Holmes, founder of this start-up that promised a revolution in health diagnostics, was sentenced to more than 11 years in prison for fraud in the management of her company. A sentence that the pregnant mother of a boy will have to start until April 27, although her lawyer has announced her intention to appeal.

Already last January, this daughter of a parliamentary adviser and former director of Enron – a group that sank in a huge fraud scandal – had been found guilty of having lied to investors about the real progress of Theranos, after four months of trial in the media. in court in San Jose, California. These investors include media mogul Rupert Murdoch, former Secretary of State Henry Kissinger and Jim Mattis, Donald Trump’s defense minister. And it was they who were recognized as victims of the former star of Silicon Valley, who one day dropped out of studies at the prestigious Stanford University to use the money saved by his parents to finance the start-up of his company, based in Palo. High in the heart of Silicon Valley in 2003.

Theranos and the Dark Side of Silicon Valley: The Startup Judgment in Five Issues

πŸ‡§πŸ‡· I thought this would be the next Apple πŸ‡§πŸ‡·

Everyone believed in this start-up, founded in 2003 when Elizabeth Holmes was just 19 years old, with the idea of ​​making a blood diagnostic tool that was quick, painless and cheaper than traditional laboratories. To convince, Elizabeth Holmes personally placed the logos of pharmaceutical giants such as Pfizer on official Theranos documents promoting their products, without permission from the companies involved. And it keeps the various flaws of its machines a secret. She was πŸ‡§πŸ‡· intelligent, eloquent, determined πŸ‡§πŸ‡·said during the Jim Mattis trial. πŸ‡§πŸ‡· I thought this would be the next Apple πŸ‡§πŸ‡·, summarized Adam Rosendorff, who was once director of the company’s laboratory. The latter, at its peak, was valued at nearly $10 billion. In 2014, Forbes estimated her fortune at $4.5 billion and described her as the youngest self-made billionaire. πŸ‡§πŸ‡· The tragedy in this case is that Mrs. Holmes is brilliant πŸ‡§πŸ‡· and that she managed to make a place for herself in a world πŸ‡§πŸ‡· dominated by male egos πŸ‡§πŸ‡·admitted the judge adding, however, that there was also sufficient evidence of πŸ‡§πŸ‡· manipulations and lies used to do business πŸ‡§πŸ‡·πŸ‡§πŸ‡·

πŸ‡§πŸ‡· The decision to deceive investors πŸ‡§πŸ‡·

It was in 2015 that the scandal came to light when wall street newspaper reveals that the machine never worked as it should. Without reliability, the startup’s technologies are used, in fact, only for a small part of the more than 200 tests offered. It’s a cold shower and investors then post heavy losses. So much so that the judge clarified on Friday that he did not take into account all the losses generated by the fall of his company, but only part of those collected by ten investors, that is, 121 million dollars. The amount you will have to return to investors will be defined later, but you will not be fined. Prosecutor Jeff Schenk argued in court that the sentence should reflect the idea that πŸ‡§πŸ‡· The ends do not justify the means πŸ‡§πŸ‡·πŸ‡§πŸ‡· Is not πŸ‡§πŸ‡· a punishment for mrs. holmes πŸ‡§πŸ‡·πŸ‡§πŸ‡· but a penalty for πŸ‡§πŸ‡· the decision to deceive investors πŸ‡§πŸ‡·, he insisted. However, the magistrate explained that he did not take into account Elizabeth Holmes’ apparent disregard for the potential risks to patients, in so far as she was acquitted of fraud charges against them. Her failure to acknowledge her responsibility by pleading not guilty, on the other hand, worked against her, he said.

The young woman’s lawyer, Kevin Downey, retorted that his client was never motivated by greed: she could have gotten rich, but she never sold shares, using the money to build her technology. She, however, assured to take it πŸ‡§πŸ‡· responsibilities for Theranos πŸ‡§πŸ‡· during the hearing, in tears, just before sentencing, saying to himself πŸ‡§πŸ‡· devastated by (his) failure πŸ‡§πŸ‡·πŸ‡§πŸ‡· πŸ‡§πŸ‡· Not a day has gone by in the last few years that I haven’t been deeply touched by what people have gone through because of my mistakes. πŸ‡§πŸ‡·, she pleaded. The prosecution had asked for fifteen years in prison and wanted her to return 800 million dollars to the victims. The defense had asked for a maximum sentence of one and a half years. In turn, his former partner and director of operations at Theranos, Ramesh πŸ‡§πŸ‡· Sunny πŸ‡§πŸ‡· Balwani, was tried separately and also found guilty of fraud. His sentence is due on December 7.