Theranos Inc. has told federal health regulators that the company voided two years of results from its Edison blood-testing devices, according to a person familiar with the matter.
Theranos corrects tens of thousands of blood-test reports, including voiding 2 years of Edison results MASS FRAUD. https://t.co/OkwFyvWqba— Jeffrey D. Sachs (@JeffDSachs) 2016年5月19日
The federal investigations, reported this week in the Journal, cover both civil and criminal law. For one, you’ve got the US Securities and Exchange Commission—which you may remember as the agency in charge of making sure companies do not bilk their investors or the public. The SEC can’t send anybody to prison, but the Department of Justice can. Which, by the way, is the other federal agency looking at Theranos’ business
And if … if the SEC finds evidence of misrepresentation, the company could be in all kinds of trouble. “The SEC has a variety of enforcement mechanisms at its disposal,” says Stevenson. It can, for instance, make Theranos pay back its investors, issue penalties, negotiate settlements, even bar Theranos’ leadership from serving as officer or director of a public company. Anything short of prison, basically.
Except the Department of Justice is also doing an investigation. They’ll probably be looking for evidence of consumer, rather than investor, fraud. Theranos sold its tests in Walgreens, to hospitals, and through Medicare and Medicaid.
If the DOJ concludes that Theranos was charging money for a test it knew was not accurate, that would violate health care laws, and could earn people prison time.
Amazing. The Edison was Holmes' key invention that drove Theranos to a valuation of $9B. https://t.co/tueNsWaquq— Stephen Bronstein (@sbb) 2016年5月19日
Finally, the question everyone should be asking is who enabled this fraud for so many years? The simple answer: everyone, and especially those who have an agenda to conduct one endless infomercial for a product that ended up being an epic fraud. Here is a sample (courtesy of Bruce Quinn).