![]() With Holmes now facing fraud charges and years behind bars if convicted, it has become common for tech leaders and venture capitalists to argue that her case is a one-off, not an indictment of the industry. Investors responded by pumping hundreds of millions of dollars into the company. Proving that Holmes is guilty will turn on demonstrating her intent, since exaggerating a product's potential, missing financial forecasts and running a secretive company do not constitute federal crimes.Īs a pitchwoman, Holmes called Theranos' device "the iPod of health care." She wore black turtlenecks in a not-so-subtle nod to Apple co-founder Steve Jobs. Her team argues that she is being wrongly prosecuted for being the CEO of a failed startup. Prosecutors have not presented such a document from Holmes, but through emails, text messages, witness testimony and other evidence, prosecutors say, they will be able to show that Holmes " knowingly and intentionally" defrauded investors and patients - something her defense team says is false. ![]() "Occasionally you might find a case where there's an email that says, 'Boy, I hope we can defraud all these investors,' but that is very rare," West said. Attorney's Office for the Northern District of California, which polices Silicon Valley. "That is frequently the most difficult part of a white-collar case to prove," said Hartley West, a former top prosecutor in the U.S. Law What A Trump Defense Secretary Said At The Elizabeth Holmes TrialĪnother reason Holmes was charged, according to former prosecutors, was that the government says it obtained evidence that she acted intentionally, which can be difficult to establish in fraud cases. "That all these people continue to lead their lives and not be held accountable for all the harm that they've caused, it does send a message," she said. There were lawsuits, settlements and more fallout - but notably, Pao points out, no criminal prosecutions. She points to Adam Neumann, who drove WeWork into the ground former Uber CEO Travis Kalanick, who resigned after a sexual harassment scandal and Juul's Kevin Burns, who stepped down amid questions over the company's role in stoking the youth vaping epidemic. "When you see which CEOs get to continue to wreak havoc on consumers and the market, it's people who look like the venture capitalists, who are mostly white men," Pao said. To Ellen Pao, the former CEO of Reddit, who is a vocal critic of gender discrimination in tech, sexism is partially to blame. In Silicon Valley, the trial has launched a debate: Since Holmes was following a playbook used by dozens of tech CEOs, why is she the only one to face prosecution when a company becomes engulfed in a scandal? 2 at Theranos, Ramesh "Sunny" Balwani, broke the law by deceiving investors about how well the business was doing and the capabilities of its testing machines, in addition to allegedly providing false or flawed test results to patients. In doing so, federal prosecutors allege, she and the No. Technology Elizabeth Holmes Promised Miracles By A Finger Prick. ![]()
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