Wealthy Startup Founder Turns Out to be a Fraudster, Jailed for 11 Years

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Previously, the www.hukumindo.com platform has talk about "Elza Syarief, Salah Satu Advokat Perempuan Populer Indonesia", "Bernie Madoff, The Story of the Biggest Ponzi Scheme Scam in History", "How To Report Online Scammer Or Fraud To The Police In Indonesia" you may read also "Case of Boredom at Work" and on this occasion we will discuss about 'Wealthy Startup Founder Turns Out to be a Fraudster, Jailed for 11 Years'.

Elizabeth Holmes, the founder of startup Theranos who was once one of the richest women in the world, was sentenced to more than 11 years in prison. He was found guilty of deceiving investors about the effectiveness of his company's blood test kits. "I feel deep sorrow for what people have gone through because of my failure. To investors and patients, I apologize," he said, quoted by detikINET from CNBC. The 38-year-old woman's lawyers initially argued that the maximum sentence for her was 18 months. However, the judge rewarded him 11 years and 3 months behind bars.[1]

The startup Theranos' business model is to run blood tests with its own technology that requires only a small sample. This test is claimed Holmes can instantly detect medical conditions such as cancer and high cholesterol. Investors also came because they were promised to reap big profits. Holmes also became one of the richest women in the United States in 2014, according to calculations by Forbes.[2]

Holmes's name is increasingly known, he is widely covered in the media. He often attends prestigious events such as TED Talks where he shares the stage with Bill Clinton and Jack Ma. Outsiders are widely interested in Theranos. One of them is Walgreens retail, which opened a blood test center with Theranos technology. "I know he had this brilliant idea and he managed to convince all these investors and scientists," said Dr. Jeffrey Flier, former dean of Harvard Medical School, having lunch with Elizabeth Holmes in 2015. In August 2015, the FDA government agency finally began investigating Theranos. Government regulators later found the blood tests Theranos performed on patients were inaccurate.[3]

In October 2015, the influential Wall Street Journal published findings about Theranos that turned out to be dubious technology. This news sparked a deeper downfall for Theranos and Holmes. John Carreyrou, a reporter for the Wall Street Journal, revealed that the Theranos blood test machine, called the Edison, could not give accurate results. Because of this, Theranos seems to be using the same machines as other traditional blood test companies, rather than its own technology.[4] And if you have any legal issue with this topic, contact us then, feel free in 24 hour, we will be happy to assist you. 

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References:

1. "Pendiri Startup Kaya Raya Ternyata Penipu Dibui 11 Tahun", detik.com., Diakses pada tanggal 21 November 2022, Link: https://inet.detik.com/law-and-policy/d-6415895/pendiri-startup-kaya-raya-ternyata-penipu-dibui-11-tahun

2. Ibid.

3. Ibid.

4. Ibid.