Unbelievable. SEC is allowing a CEO who perpetrate
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Posted On: 04/13/2018 10:32:30 AM
Unbelievable. SEC is allowing a CEO who perpetrated an outright fraud on investors to stay in charge and ask investors for more money.
If you're not familiar with the Theranos case, they said they had developed a machine that could do a zillion blood tests from just a few drops of blood -- signed an agreement with Walgreen's to install the machines in their stores.
Only problem was, their machines didn't work. So they set up fake "labs" in which they installed OTHER companies' machines under new casings, and rigged them so that they would seemingly print out accurate test results -- but actually they were just a con game, they used previously tested samples and then printed out the supposed "new" analysis.
When they had the room set up, they trotted investors through the "lab" to fool them into thinking Theranos had a machine that worked.
The outcome? SEC fined them. Big deal, hundreds of millions of dollars lost by investors.
Crooked CEO who designed all this remains in power.
Thanks, SEC.
Oh, by the way, the head scientist for the company committed suicide when he realized that the machines were never going to work, and that the fraud had been uncovered.
And, this was a company that Cramer urged all his followers to "Buy buy buy."
well, bye-bye to their money, anyway.
https://www.fiercebiotech.com/medtech/holmes-...d=48083647
If you're not familiar with the Theranos case, they said they had developed a machine that could do a zillion blood tests from just a few drops of blood -- signed an agreement with Walgreen's to install the machines in their stores.
Only problem was, their machines didn't work. So they set up fake "labs" in which they installed OTHER companies' machines under new casings, and rigged them so that they would seemingly print out accurate test results -- but actually they were just a con game, they used previously tested samples and then printed out the supposed "new" analysis.
When they had the room set up, they trotted investors through the "lab" to fool them into thinking Theranos had a machine that worked.
The outcome? SEC fined them. Big deal, hundreds of millions of dollars lost by investors.
Crooked CEO who designed all this remains in power.
Thanks, SEC.
Oh, by the way, the head scientist for the company committed suicide when he realized that the machines were never going to work, and that the fraud had been uncovered.
And, this was a company that Cramer urged all his followers to "Buy buy buy."
well, bye-bye to their money, anyway.
https://www.fiercebiotech.com/medtech/holmes-...d=48083647
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