March 28, 2024

Elizabeth Holmes was found guilty this week on 4 of 11 charges against her. The jury was unable to reach agreement on the remaining seven charges against her. Multiple media outlets have reported on the verdict. They include the Verdict itself in the Wall Street Journal (WSJ); what the verdict means for Silicon Valley, in the New York Times (NYT); questions on the victims of the Theranos fraud in Bloomberg and, of course, the lingering questions or how or even will Holmes serve any time, as reported in Fortune. Others have questioned whether the guilty verdict is an indictment of the entire Silicon Valley “fake it ‘til you make it” culture, as reported in The Verge.

I had two recent podcasts on the trial, Holmes and Theranos. The first, with white collar defense lawyer Kevin O’Brien, looked at the trial itself, the prosecution and defense cases as well as whether Holmes testimony hurt or helped her defense. The second, with Exiger President Brandon Daniels, considered the types of due diligence which you should engage in when considering a major investment. Both episodes were well received, pointing to the ongoing fascination with this major fraudster and how to parse out some lessons learned for the compliance professional.

From the testimony it was clear that Holmes knew exactly what she was doing all along. As reported by The Verge, “When it came to the investors, prosecutors had Holmes dead to rights. Unlike with the patients, she was in the room. There…

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