Elizabeth Holmes

[JCBrown]

Once viewed as a rising star of Silicon Valley and a figure of inspiration for women in tech, the former CEO of Theranos has been found guilty of defrauding investors during the company’s fifteen years of trading.⁠

How could all the investors be fooled for so long by this and how can people avoid instances like this in the future?

 

[fisicx]

How could all the investors be fooled for so long by this and how can people avoid instances like this in the future?

She was a very good at convincing people it would work when anyone with intelligence could see it wasn't possible. Even her own scientists told her it wasn't possible.

You can't stop this happening in the future, history is littered with examples of investors being taken in by too good to be true offer. Even governments have been conned:

ADE 651 - Wikipedia

en.wikipedia.org

 

[Paul Norman]

Some people are gullible.

It might surprise us all how many.

Remember, the average IQ is, well, average. And average is not that good.

Plus, add in the blindness that happens when you start to smell profit. We even read it in here. People are offered an opportunity and when we all cry 'do your due diligence' they still do it.

 

[JCBrown]

Some people are gullible.

It might surprise us all how many.

Remember, the average IQ is, well, average. And average is not that good.

Plus, add in the blindness that happens when you start to smell profit. We even read it in here. People are offered an opportunity and when we all cry 'do your due diligence' they still do it.

Are there laws that protect investors from these occurrences or is it down to the terms that you have signed up to?

 

[Mark T Jones]

We all love a 'smooth' fraud - particularly where the victims are wealthy - arguably greedy.

There are of course laws against fraudulently gaining investment - which have been used in this case - the recourse for investors is limited to what they can recoup.

Successful people often have big egos - and people with big egos can be surprisingly gullible.

 

[fisicx]

Are there laws that protect investors from these occurrences or is it down to the terms that you have signed up to?

Yes, there are already loads of laws. Fraud being the most commonly used.

 

[Paul Norman]

I think there is a decent suite of laws in place.

There are potential questions about the speed of the system to act - but often it is not that simple.

But it is not illegal to make a bad deal. And deal makers are rightly responsible for checking they don't get into one. Most of us fail some of the time at that. Some do so more spectacularly.

But in this case, laws were broken. Misrepresentation is illegal.

 

[DontAsk]

Are there laws

What do you think she was found guilty of?

 

[JCBrown]

What do you think she was found guilty of?

I have not gone into the depths of what allegedly happened but it sounds like it could be embezzlement

 

[fisicx]

I have not gone into the depths of what allegedly happened but it sounds like it could be embezzlement

Have a read of the news reports and you answer your own questions. Guilty of 4 out of 11 charges of fraud. Not embezzlement, that is something else entirely (it’s a type of theft).

 

[JCBrown]

This seems like it's going to be even harder for the silicon guys to get investments into their businesses. Any vetting process is going to be crazy

 

[JCBrown]

Have a read of the news reports and you answer your own questions. Guilty of 4 out of 11 charges of fraud. Not embezzlement, that is something else entirely (it’s a type of theft).

I hadn't fully read it until now. It was definitely far from embezzlement!

It could be seen that seem that the fame, wealth and accolades she'd been getting from her late teens into adulthood may have played a part in her doing whatever it took to maintain things

 

[estwig]

I like her....................

At no time did she cash out, she could've grabbed billions and disappeared, now she's skint!

She turned up at court when she didn't have to, didn't change her story, she believes!

I would!!!!!

 

[johndon68]

At no time did she cash out, she could've grabbed billions and disappeared, now she's skint!

I believe that formed part of her defence in so far as if she was a fraud why didn't she just take the money and run when she had the chance...

 

[japancool]

I believe that formed part of her defence in so far as if she was a fraud why didn't she just take the money and run when she had the chance...

Probably because she knew it was all a fraud.