US v. Theranos (oct. 23) Flashcards
theranos
US v. Theranos
founders: Sunny Balwani & Elizabeth Holmes
groomed audience like child predators groom childrein
- gaining trust to manipulate (in this case getting $)
Holmes was very professional & compelling w/her sales pitches
case against theranos
US v. Theranos
company claimed that they had cutting edge medical devices that were already working and sold them to medical facilities
overview of the fraud
US v. Theranos
- 2 multi-million dollar schemes to promote theranos
- advertising & socilitations to induce doctors/patients to use services H & B knew were unreliable & inaccurate (mens rea)
- making false claims about theranos & omitted information about its limits & problems
charges in indictment
US v. Theranos
indictment was conspiracy to commit wire fraud & wire fraud
- Holmes met with people to get $ through banks (wire)
- important individual wires that made best cases were taken to court
jury verdict: Holmes
US v. Theranos
convicted of wire fraud conspiracy & 3 substantive wire fraud counts
got 135 months in prison (max was 20y)
- penalty was hefty for white collar crime
jury verdict: Balwani
US v. Theranos
convicted of 2 counts of wire fraud conspiracy & 10 wire fraud substantive counts
got 155 months in jail (max 20y)
- his sentence was decided based on federal sentencing book & statute 3553
