| Just a few weeks ago, Theranos Founder, Elizabeth Holmes, was convicted of defrauding investors and sentenced to a substantial 11+ years in prison. Judge Edward Davila delivered a harsh sentence that he believes will send a message to Silicon Valley.
Other than the length of her sentence, nothing about this outcome amends our earlier analysis after the verdict—Holmes was a driven entrepreneur whose vision probably became untethered from reality, the type of Type A Silicon Valley eccentric who drives innovation when their excesses are held in check.
The real crime in our opinion is not that she lost money for people who were rich enough to suffer the blow but that she was acquitted of deliberately misleading healthcare consumers, a much more egregious charge. And the ONE ASPECT of this case (if true) that genuinely separates Holmes from most other tech entrepreneurs who fly too close to the sun.
How is it that the Palo Alto jury showed no lenience for Holmes misleading investors (sophisticated venture capitalists, not pensioners with Theranos stock hiding like a sleeper cell in their 401k’s), but let her off the hook for lying to patients and healthcare providers like Walgreens that believed her company’s promises regarding the reliability of its signature (just one drop of) blood tests?
We're not sure if Holmes’ sentence will throw an ice bucket over excessive Silicon Valley egos (Elon is still roaming free) or tighten the reins on the fulfillment of visionary ambition. Still, the verdict sends a message that, even in 2022, in America, losing investors’ money remains a bigger crime than compromising consumer health and safety.
We suspect this Steve Jobs wannabe is looking at years behind bars because she lost ‘sophisticated’ VC investors’ money and hurt their pride.
If Holmes had been found “guilty on four other counts related to defrauding patients who had used Theranos’s blood tests,” her stiff sentence would include a message worth delivering.
If you would like to read Gapingvoid’s Theranos pieces on the Forbes Coaches Council website, revisit the first story and analysis of the Holmes verdict. | 