4 ms·

How do you not go to jail for this? This isn't fake it until you make it. This is massive fraud. 100 mil vs 100,000 is off by a factor of 1000.

hn_throwaway_99 9y ago
Well, parsing that statement: > claimed that Theranos’ products were deployed by the U.S. Department of Defense on the battlefield in Afghanistan and on medevac helicopters That is clearly a statement looking at past events, so if it was false it was clearly a lie > the company would generate more than $100 million in revenue in 2014. The important word there appears to be "would", in which case it was a forward-looking statement so easier to argue it was based on projections that just didn't pan out.
iliketosleep 9y ago
I agree, especially when you use the recent Shkreli case as a point of comparison. You have Shkreli who has been put away for 7 years for a hypothetical 10mil, yet Holmes commits "massive fraud", possibly losing 100's of millions of investors' money, and most likely gets away with a 600,000 fine and no jail time.
- psergeant 9y ago
  Also, regarding the Shrekli case, didn’t everyone end up financially better off than they started?
  - hyperbovine 9y ago
    Umm, the money had to come from somewhere.
    - justAnotherNET 9y ago
      Yeah. He failed with A, spun up B. B did well, he paid off A with B and B made money. Technically fraud. Everyone got paid, but he still committed a process crime
    - aplummer 9y ago
      Nah they did. He lost their money on stocks, lied about the state of their investments then paid them all a healthy return from his drug ventures with them none the wiser.
    - L_Rahman 9y ago
      It came from the pockets of insurers and individuals who couldn't afford insurance at all when he jacked up the prices of essential drugs. That wasn't illegal at all though :) Just that he lied to his investors about the source of the returns.
      - gowld 9y ago
        People who can't afford insurance can't afford retail price either, and get discounts.
- notzuck 9y ago
  I believe this is known as the 'pussy pass'.
- justAnotherNET 9y ago
  This is going to be a golden bone to the men charged with X vs women charged with Y crowd.

hn_throwaway_99 9y ago

Well, parsing that statement: > claimed that Theranos’ products were deployed by the U.S. Department of Defense on the battlefield in Afghanistan and on medevac helicopters That is clearly a statement looking at past events, so if it was false it was clearly a lie > the company would generate more than $100 million in revenue in 2014. The important word there appears to be "would", in which case it was a forward-looking statement so easier to argue it was based on projections that just didn't pan out.

iliketosleep 9y ago

I agree, especially when you use the recent Shkreli case as a point of comparison. You have Shkreli who has been put away for 7 years for a hypothetical 10mil, yet Holmes commits "massive fraud", possibly losing 100's of millions of investors' money, and most likely gets away with a 600,000 fine and no jail time.

psergeant 9y ago
Also, regarding the Shrekli case, didn’t everyone end up financially better off than they started?
- hyperbovine 9y ago
  Umm, the money had to come from somewhere.
  - justAnotherNET 9y ago
    Yeah. He failed with A, spun up B. B did well, he paid off A with B and B made money. Technically fraud. Everyone got paid, but he still committed a process crime
  - aplummer 9y ago
    Nah they did. He lost their money on stocks, lied about the state of their investments then paid them all a healthy return from his drug ventures with them none the wiser.
  - L_Rahman 9y ago
    It came from the pockets of insurers and individuals who couldn't afford insurance at all when he jacked up the prices of essential drugs. That wasn't illegal at all though :) Just that he lied to his investors about the source of the returns.
    - gowld 9y ago
      People who can't afford insurance can't afford retail price either, and get discounts.
notzuck 9y ago
I believe this is known as the 'pussy pass'.
justAnotherNET 9y ago
This is going to be a golden bone to the men charged with X vs women charged with Y crowd.