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Count one of conspiring to commit wire fraud against investors in Theranos between 2010 and 2015: Guilty. Count two of conspiring to commit wire fraud agai
by NikolaeVarius 5y ago
Count one of conspiring to commit wire fraud against investors in Theranos between 2010 and 2015: Guilty.
Count two of conspiring to commit wire fraud against patients who paid for Theranos’s blood testing services between 2013 and 2016: Not guilty.
Count three of wire fraud in connection with a wire transfer of $99,990 on or about Dec. 30, 2013: No verdict.
Count four of wire fraud in connection with a wire transfer of $5,349,900 on or about Dec. 31, 2013: No verdict.
Count five of wire fraud in connection with a wire transfer of $4,875,000 on or about Dec. 31, 2013: No verdict.
Count six of wire fraud in connection with a wire transfer of $38,336,632 on or about Feb. 6, 2014: Guilty.
Count seven of wire fraud in connection with a wire transfer of $99,999,984 on or about Oct. 31, 2014:Guilty.
Count eight of wire fraud in connection with a wire transfer of $5,999,997 on or about Oct. 31, 2014: Guilty.
Count nine was dropped.
Count 10 of wire fraud in connection with a patient’s laboratory blood test results on or about May 11, 2015: Not guilty.
Count 11 of wire fraud in connection with a patient’s laboratory blood test results on or about May 16, 2015: Not guilty.
Count 12 of wire fraud in connection with a wire transfer of $1,126,661 on or about Aug. 3, 2015: Not guilty.
- klohto 5y agoThese are big wins! Some huge sums up there. How many years is she looking at?
- NikolaeVarius 5y ago20 years per count
- Symmetry 5y agoThat's the maximum possible the judge could decide to give. It bears little relationship to what the federal sentencing guidelines will actually suggest or the judge will deliver. https://www.popehat.com/2013/02/05/crime-whale-sushi-sentence-eleventy-million-years/ https://www.popehat.com/2013/02/05/crime-whale-sushi-sentenc...
- Ostrogodsky 5y ago
- beamatronic 5y ago
- BobbyJo 5y agoRacial and gender disparities are real, but against the 'rich' part in this case... In any case, she'll definitely do time. You're forgetting the victims in this case are not only also rich, but probably vastly better connected since they have yet to steal from their friends.
- Ostrogodsky 5y ago> Racial and gender disparities are real, but against the 'rich' part in this case... Sorry I didnt understand what you meant here.
- BobbyJo 5y agoSaying she'll get off because she's white, a woman, and rich is like saying your car stalled because your tires were low, you had groceries in the back seat, and your engine hadn't had its oil changed in 18 years. That make more sense? Edit: I'm saying being white and being a woman helps, but being rich helps such an astronomically huge amount more emphasizing anything else feels less like informing and more like baiting. Not sure how that wasn't crazy clear.
- Ostrogodsky 5y agoNo, I am more confused now. Are you saying white, rich people and women dont get preferential treatment in the US justice system?
- zls 5y agoReads to me like "being rich only helps if the people on the other side are materially less rich". edit: wow, reading gp's "clarification" below, I was way off
- paxys 5y agoTechnically 20 years per count, but realistically not too many. White collar crimes are anyways not punished very strictly, and she's a new mother on top of that. She'll negotiate a short term at some country club prison.
- hn_throwaway_99 5y agoThere are really no "country club prisons" in the US anymore. Yes, there are minimum security prison camps for first time, non violent offenders, which seems entirely appropriate, but a day spa it aint.
- deleted 5y ago[deleted]
- rrdharan 5y ago“What it’s really like inside ‘Club Fed’ prisons”: https://www.washingtonpost.com/news/reliable-source/wp/2015/01/05/what-its-really-like-inside-club-fed-prisons/ https://www.washingtonpost.com/news/reliable-source/wp/2015/...
- jcranmer 5y agoI'm not an expert in US sentencing guidelines, but a quick crack at the sentencing guidelines calculator [1] suggests ~97-121 months, or about 8-10 years. [If you're not familiar with sentencing, the basic procedure is this: 1. Compute an 'offense level' for each count. For counts that are strongly related (which all of these likely are), combine by taking the maximum offense level. If they're not related, it's more complicated (not simply adding them up). 2. Compute a 'criminal history level'. For Holmes, that's basically "no criminal history." 3. Adjust for things like the convicted person's remorse or cooperation with investigators. 4. Look up a table that maps offense and criminal history to an actual sentencing range. 5. Adjust that (primarily, but not exclusively, in the previously output range) based on the judge's feelings.] [1] https://www.sentencing.us/ https://www.sentencing.us/
- busymom0 5y agoApparently the "No verdict" might get declared a mistrial on 3 counts. For those unaware John Carreyrou played a major role in exposing Holmes. His book is a good read: Bad Blood and host of Bad Blood: The Final Chapter https://twitter.com/JohnCarreyrou/status/1478158063379042304 https://twitter.com/JohnCarreyrou/status/1478158063379042304 > And the judge will probably declare a mistrial as to the 3 counts they couldn’t reach consensus on. > The 4 guilty counts are all investor counts. The investor conspiracy count and the counts relating to the hedge fund PFM, the ex Cravath attorney Mosley and the DeVos family. EDIT: Mistrial only on those 3 counts which got no verdict, not the full trial. Also this is only if the Feds want to do it or now which will also depend upon how many years Holmes gets as well as if she just decides to plead guilty on those 3 charges.
- celticninja 5y agoWhy would a mistrial be declared? Does that prevent a future prosecution of these charges?
- deleted 5y ago[deleted]
- VWWHFSfQ 5y agoIt will likely result in a new trial of those counts.
- paxys 5y agoIf the prosecution decides to pursue it. They may very well decide that finding her guilty on 4 of 11 counts sends a strong enough message.
- Kranar 5y agoIt's not about sending a message, it's that the sentence will almost certainly be carried out concurrently. That means even if she is found guilty of the remaining counts it won't result in any additional time served.
- passerby1 5y agoDid Theranos blood test work?
- celticninja 5y agoNo. The very fact this trial occurred is testament to that fact.
- mulmen 5y agoThat’s not how the presumption of innocence works.
- celticninja 5y agoShe wasn't being tried on the technology. The technology had failed, the issue is she knew it didn't work and told people it did to get their money. If the technology worked then even if the business failed with huge losses, there was no fraud. The presumption of innocence in this case, is that she did not mislead Investors.
- alisonkisk 5y ago
- deleted 5y ago[deleted]
- VWWHFSfQ 5y agoMy understanding is that it worked in the sense that the results were accurate. But the results were gotten by means other than what the investors/customers thought. So the end-user patients really had no claim since they got correct results. But the companies and investors got scammed bigtime.
- teraflop 5y agoI haven't been following the trial closely, but I spent a bit of time skimming through some of the case documents a while back. The government's allegations included a bunch of supporting statements from doctors, who claimed that Theranos frequently gave their patients wildly inaccurate results. It sounds like they weren't able to convince the jury of Holmes' guilt on those charges. (IIRC, Holmes' lawyers also made the argument that it was not legally possible for her to have committed wire fraud against the patients, because any money that Theranos received would have come from their insurance companies.) Part of the difficulty is that the empirical data that would have proven how well (or poorly) the technology worked was allegedly stored in a proprietary, bespoke database. When Theranos was ordered to turn over the data to the feds for discovery, they delivered an encrypted copy, and then claimed that the encryption key was lost and the original disk arrays were unrecoverable. Both sides of the case then blamed each other for destroying the last remaining copy of the data, which made for some fun reading.
- jameson 5y agoWhat an odd sums of money ending with 9s. Does anyone know why such numbers were picked?
- ShamelessC 5y agoWhat are you talking about?
- jameson 5y agoCount six of wire fraud in connection with a wire transfer of $38,336,632 on or about Feb. 6, 2014: Guilty. Count seven of wire fraud in connection with a wire transfer of $99,999,984 on or about Oct. 31, 2014:Guilty. Count eight of wire fraud in connection with a wire transfer of $5,999,997 on or about Oct. 31, 2014: Guilty.
- tevon 5y agoThe $38m one likely has to do with share count or funds. Often shares will be split %-wise between two or more funds. I.e. 22.5% goes to XYZ Fund 1, 85.5% goes to XYZ Fund 2. These % can be super specific and make it so wires go down to the cent.
- kadoban 5y agoRound number minus various transfer fees maybe?
- skzv 5y agoIt's probably minus the wire fee, so you can round up.
- phonon 5y agoBecause someone says "I'll invest $100,000,000" and it's not evenly divisible by the share price.
- hn_throwaway_99 5y agoDon't know all of the details behind each count, but glad to see this result, which seems good and fair. Basically, looks like the majority of "committing fraud against investors" charges were guilty, but the "committing fraud against patients", which always seemed like more of a stretch to me, were not guilty.
- celticninja 5y agoI wonder if that was because they used other testing methods to check patient samples, so they patient got a result regardless of the means by which it was obtained.
- nmz 5y agoStill seems like fraud to me, they advertised a single drop of blood and they ended up taking blood samples the normal method.
- NikolaeVarius 5y agoAnd exactly what damage was done, slightly less blood in the patient?
- dvhh 5y agoI think in some case un-necessary and costly procedures were performed as some of the test were inaccurate.
- superfrank 5y agoNAL, but I believe the prosecution would need to prove damages. If, like you said, the patients still got their results, the results were correct, and it was only how those results were obtained that lead to the patient fraud charges, then I think you maybe correct. Again, I'm not a lawyer, so people should feel free to correct me if what I said was wrong.
- bryan0 5y ago
- xqcgrek2 5y agoInteresting you can tell how much the wire transfer fee was in each case. How does it compare to the major crypto exchanges?
- goobergoo 5y agoBoy, it's all about the wire-fraud, isn't it? The MONEY itself seems to have filed this lawsuit.
- celticninja 5y agoIt's fraud case, so it exists entirely because someone was separated from their money illegally. I imagine in part this case was brought to protect some of that money through insurance, which may pay out if the fraud is proven.
- Overtonwindow 5y agoI think it's about wire fraud because the prosecution was able to prove she had motive to commit fraud. Whereas with the patients, it seems, the jury believed she did not intend to cause fraud upon the patients.
- deleted 5y ago[deleted]
- deleted 5y ago[deleted]
- alisonkisk 5y ago