Connect with us

Business

As Elizabeth Holmes Heads To Prison For Fraud, Many Puzzle Over Her Motives

Published

1 year ago

on

holmes

SAN JOSE, Calif. The criminal prosecution that exposed the blood-testing scam at the heart of Elizabeth Holmes’ Theranos firm is entering its final phase as Holmes prepares to report to prison next week.

The 11-year sentence is just dessert for the starry-eyed lady who rose to the top of Silicon Valley’s business world despite the “tech bro” culture’s bias towards women, only to be revealed as a phony. Along the process, Holmes became symbolic of the obnoxious boasting that permeates the startup community.

The federal judge who oversaw her trial seems perplexed by the numerous unanswered issues regarding her motivations. And Holmes’ supporters keep asking if the sentence is proportional to the crime.

She was convicted of fraud and conspiracy at the young age of 39, and it seems likely that she will be known as Silicon Valley’s Icarus.

Some of her supporters believe federal prosecutors unfairly singled her out in their pursuit of bringing down a prominent practitioner of fake-it-til-you-make-it, the tech industry’s brand of self-promotion that sometimes veers into exaggeration and blatant lies to raise money.

On May 30, Holmes will begin serving the sentence that will force her to spend time away from her two children, a son whose birth in July 2021 delayed the start of her trial and a 3-month-old girl conceived after her conviction.

Bryan, Texas, is around 100 miles (160 km) northwest of her hometown of Houston and is where she is slated to serve her time. The judge who condemned Holmes suggested the prison, but the location where she would be housed has yet to be made public.

Many people think she is dishonest and should go to jail for selling a device that, she said, could detect hundreds of diseases and other health problems with just a few drops of blood collected from a finger prick.

holmes

The criminal prosecution that exposed the blood-testing scam at the heart of Elizabeth Holmes’ Theranos firm is entering its final phase.

The technique was less effective than advertised. Instead, the results of Theranos’s tests were extremely unreliable, potentially jeopardizing patients’ lives, which is why she should be charged.

Holmes had secured over $1 billion from several sophisticated investors, including Oracle co-founder Larry Ellison and media magnate Rupert Murdoch before those lies were exposed in a series of blockbuster articles in The Wall Street Journal beginning in October 2015. She was convicted of fraud and had to pay $452 million in compensation because of the victims she defrauded.

At one time, Holmes’ Theranos investment made her a paper billionaire worth $4.5 billion. She never sold any of her shares in the company, but the trial evidence showed that she enjoyed the perks that came with her newfound celebrity and money. She and her children’s father, William “Billy” Evans, even resided in a mansion in Silicon Valley while the trial was going on.

Trial evidence recording Holmes’ efforts to prevent the Journal’s research from being published lent credence to the allegation that she was running an extensive fraud. John Carreyrou, the reporter who broke the blockbuster story, attended the trial because of the pressure from the campaign. He sat directly in front of Holmes as she testified.

Holmes approved surveillance aimed at intimidating employees who uncovered the vulnerabilities in Theranos’ blood testing system. Tyler Shultz, the grandson of former Secretary of State George Shultz, was one of the whistleblowers Holmes met and persuaded to join the Theranos board.

Alex Shultz revealed at his daughter’s sentencing that Tyler Shultz slept with a knife beneath his pillow because he was terrified of Holmes’ attempts to silence him.

Holmes’ defenders insist she never intended any harm and was made a scapegoat by the FBI and DOJ. They claim she is just as guilty of using hyperbolic advertising as Elon Musk, another prominent tech entrepreneur who has constantly exaggerated the capabilities of Tesla’s self-driving cars.

Some have argued that Holmes was treated unfairly because she was a woman and because her trial transformed her into a modern-day Hester Prynne, the protagonist of the 1850 classic “The Scarlet Letter.”

Throughout seven days of often compelling testimony in her defense, Holmes doggedly maintained her innocence, causing thousands to queue shortly after midnight to acquire one of the few dozen seats in the San Jose courtroom.

holmes

The criminal prosecution that exposed the blood-testing scam at the heart of Elizabeth Holmes’ Theranos firm is entering its final phase.

While attending Stanford University, Holmes was the victim of sexual assault, an experience she had never fully recovered. She said that her former lover and Theranos conspirator, Ramesh “Sunny” Balwani, had subjected her to a cycle of emotional and sexual abuse and that his oppressive control had clouded her judgment.

Jeffrey Coopersmith, Balwani’s attorney, refuted the claims during the trial. Coopersmith attempted, but failed, to portray his client, Balwani, as Holmes’ pawn in the later trial.

Balwani, 57, was found guilty of fraud and conspiracy and is currently serving nearly 13 years in prison.

U.S. District Judge Edward Davila seemed as perplexed as the rest of us when it came time to sentence the pregnant Holmes in November.

“This is a fraud case where an exciting venture went forward with great expectations and hope, only to have them dashed by untruth, misrepresentations, hubris, and plain lies,” Davila bemoaned as Holmes stood before him. “I suppose we step back and look at this, and we think, what is the pathology of fraud?”

The judge also recalled when Silicon Valley was primarily orchards planted by immigrants. That was before Palo Alto, where Theranos is headquartered, gave way to the tech boom in the late 1930s, when William Hewlett and David Packard launched the corporation that would bear their names in a one-car garage.

You’ll remember the incredible innovation of those two men in that modest garage,” Davila told the attentive courtroom. “No flashy cars or opulent lifestyle, just a commitment to doing good, honest work for the benefit of others. And that, I can only hope, will be Silicon Valley’s lasting legacy and standard operating procedure.

SOURCE – (AP)

Related Topics:
Continue Reading

Business

Forced Sale Google Chrome Could Fetch $20 Billion

Published

7 hours ago

on

2024-11-21

By

Sale Google Chrome

Antitrust officials in the US could force the sale of Google’s Chrome browser for up to $20 billion, demonstrating the tremendous worth of the world’s most popular web browser.

Bloomberg Intelligence attributes Chrome’s projected worth to its more than 3 billion monthly active users. The US Department of Justice is preparing to request a federal judge order the browser’s separation from Google’s parent company, Alphabet.

Chrome’s worth comes from its overwhelming 61% market share and its crucial role in Google’s advertising ecosystem. User data enables businesses to better target adverts, and the browser also acts as an important distribution mechanism for Google’s AI technologies.

Industry analysts think it may be difficult to find a suitable buyer. While tech behemoths like Amazon could finance the purchase, they would likely face regulatory scrutiny.

AI businesses, such as OpenAI, may emerge as more viable contenders. They could potentially leverage Chrome to broaden their reach and develop an advertising business.

“It’s not directly monetizable,” one analyst told Bloomberg. “It functions as a gateway to other things. It’s unclear how you would assess that in terms of pure revenue generation.”

Google opposes prospective sales, claiming that they will hamper innovation. The firm does not break out Chrome’s revenue individually in its financial filings, even though the browser’s user data plays an important part in the company’s principal revenue stream, advertising.

The DOJ’s suggestion follows Judge Amit Mehta’s August decision that Google had illegally monopolized the search industry. The judge will consider the recommended remedies at a two-week hearing in April 2024, with a final judgment due in August 2025.

Related News:

Appeals Court Delays Order For Google To Open Its App Store In Antitrust Case

Appeals Court Delays Order For Google To Open Its App Store In Antitrust Case

Continue Reading

Business

Bitcoin Has Set a New Record And Is Approaching $100,000.

Published

15 hours ago

on

2024-11-21

By

Bitcoin

(VOR News) – Bitcoin broke beyond the $98,000 mark for the first time on Thursday as investors awaited Donald Trump’s second term as president. All of this happened during the day. As such, cryptocurrency has reached a significant turning point.

According to Coin Metrics, the top cryptocurrency was trading at $97,541.61 during the most recent trading session. Merchants provided this information. This suggests a price gain of more than three percent during the previous trading session.

When the period began, Bitcoin peaked at $98,367.00.

During the premarket trading session, MicroStrategy, a platform that facilitates cryptocurrency foreign exchange trading and serves as a bitcoin proxy, saw a 13% gain. Coinbase, on the other hand, had a 2% rise during that period. Furthermore, all of these increases occurred simultaneously.

The market value of Mara Holdings increased by 9%, which helped raise the valuation of mining companies overall. This was among the factors that led to the total rise.

Because of the widespread belief that President Trump will usher in a new era of prosperity for cryptocurrencies, one marked by more favorable laws and the possible creation of a national strategic bitcoin reserve, the price of Bitcoin has been rising steadily this month.

The most recent change brought about by the increase was the consequence of higher financing rates and more open interest in the futures market during Asian trading hours. The rise was the catalyst for this change. This action was prompted by the ensuing rush.

Throughout its lifespan, this legislation was the catalyst for this change for a variety of reasons. At the same time, spot market premiums decreased, according to CryptoQuant statistics. All of this happened at the same time.

Furthermore, a number of short liquidations have been sparked by the recent spikes in Bitcoin’s price, which has caused the price to rise overnight. As a result, the price has gone up much more. As a result, the total number of short liquidations has increased.

According to CoinGlass, these liquidations have effectively produced more than $88 million in capital during the last 24 hours.

Rob Ginsberg, an analyst at Wolfe Research, noted in a study released on Wednesday that “historically, following previous movements of this magnitude, Bitcoin has either entered a consolidation phase or disregarded the overbought condition as investors accumulate.” This phrase relates to the fact that this particular move has happened before.

Ginsberg stated this in reference to the evolution of Bitcoin over time.

Ginsberg’s answer makes reference to Bitcoin’s propensity to go through a period of consolidation. The comment also made reference to this.

He said, “Considering we are emerging from an extended consolidation phase and the price has reached a new high, it suggests that the pursuit is underway.”

The crucial psychological milestone of $100,000 is expected to be reached in the upcoming weeks, and this breakthrough could happen as early as Thursday. It seems likely that this level will be reached. There is a chance that this new development will take place.

This task will be carried out against the backdrop of this historical era. In addition, if Trump were to win a second term, federal budget deficits would increase, inflation would likely increase, and the dollar’s position in international affairs would change.

The administration that Trump would run during his presidency would be responsible for these consequences. All of these characteristics would positively impact the value of Bitcoin as a currency if they were taken into account in the order that they are presented.

The price of bitcoin had risen by more than 130% by the beginning of 2024.

SOUREC: CNBC

SEE ALSO:

PayPal’s Technical Challenges Are Affecting Thousands Of Customers Globally.

NVIDIA’s Earnings: The Leader In AI Chips Demonstrates Relentless Growth.

 

Continue Reading

Business

Target Struggles in the Third Quarter: Offers Tempered Holiday Outlook and Price Cuts

Published

1 day ago

on

2024-11-20

By

Target

(VOR News) – Target experienced a modest rise in sales during the third quarter; nevertheless, profitability declined due to reduced customer spending attributed to inflation and adverse effects from the ongoing costs associated with the October dockworker strike.

Despite ongoing consumer expenditure in the United States, but with more prudence, the Minneapolis retailer did not meet Wall Street’s forecasts for the quarter and similarly disappointed industry analysts with its projections for the final quarter of the year.

Target’s reduction in prices for Christmas products, including a Thanksgiving promotion that lowered the cost of the holiday feast relative to last year’s total, raises concerns about disappointing quarterly results.

Target’s latest quarter sharply contrasts with competitor Walmart, which reported another quarter of exceptional revenues on Tuesday and provided positive forecasts for the forthcoming holiday season. Amazon disclosed last month that its quarterly profits had risen. Amazon surpassed projections with an 11% rise in quarterly revenue.

Target fell over 21% on Wednesday morning.

Chairman and CEO Brian Cornell stated, “We encountered distinct challenges and financial constraints that impacted our overall performance.”

FactSet reports that Target’s net income for the quarter ended November 2 was $854 million, or $1.85 per share, markedly below the anticipated $2.30 and a decline from $971 million, or $2.10 per share, in the same quarter of the previous year.

Despite an increase in sales to $25.67 billion from $25.4 billion the previous year, they fell short of Wall Street’s projections.

Target announced that for the fiscal fourth quarter, it anticipates earnings per share to fall between $1.85 to $2.45. This amount is below the $2.65 per share forecast by analysts surveyed by FactSet.

The retailer announced that in the third quarter, its comparable sales, derived from stores and digital platforms operational for a minimum of one year, increased by 0.3%.

This is inferior to the second quarter’s 2% growth. Several months of decreases, comprising a 3.7% reduction in the first quarter and a 4.4% reduction in the company’s final quarter of 2023, were counterbalanced by the rise in the April–June period.

Cosmetics sales rose by almost 6%, whilst food, beverages, and necessities such as shampoo experienced gains in the low single digits relative to the previous year.

The positive attributes were negligible. Target’s quarterly customer traffic rose by 2.4%. Target officials report that this represents an increase of 10 million sales transactions compared to the previous year. Digital comparable sales rose by 10.8% due to a 20% enhancement in same-day delivery facilitated by the Target Circle loyalty program and double-digit growth in its drive-up service.

Target encountered several challenges.

Target’s food and beverage sales constitute under 25% of overall sales, indicating a greater dependence on luxury items such as apparel and accessories.

Target management acknowledged that the company, similar to other retailers, had to redirect specific items due to the strike of 45,000 dockworkers, the first occurrence since 1977.

The accumulation of commodities in warehouses escalated operational expenses and diminished corporate earnings.

The commitment by President-elect Donald Trump to impose elevated import tariffs is resulting in difficulties for Target and other enterprises. Trump advocates for a 60% tariff on Chinese imports and a 20% levy on all other products. Cornell stated that, despite monitoring trends meticulously, the corporation has prioritized diversifying its supplier network.

“Currently, there exists considerable uncertainty regarding future developments, and we will exercise our flexibility to adapt as necessary,” he stated on the call.

Buyers remain apprehensive due to ongoing uncertainty, as prices, albeit decreasing, remain elevated compared to a few years prior.

“They are exhibiting significant patience, pursuing promotions and outstanding value on essential pantry items,” Cornell stated during a conference call with reporters. “Over the year, they have consistently focused on discretionary categories and are practicing prudent shopping behaviors.”

Target officials indicated a decline in television purchases, although they expressed interest in incorporating candles, frames, and flowers into their home décor.

Target has been reducing prices to boost sales. Last spring, it reduced costs for numerous essentials, including milk and diapers. Almost fifty percent of the numerous goods offered this Christmas are priced below $20. Target is offering a Thanksgiving dinner bundle for four people at $20, which is $5 less than its 2023 Thanksgiving meal package.

SOURCE: USN

SEE ALSO:

Comcast Is Expected To Announce Its Cable Network Separation On Wednesday.

Canada’s Budgetary Watchdog Warns Over Trudeau’s Spending

Continue Reading

Trending