Theranos, CEO Holmes, and Former President Balwani Charged with Fraud
Ok, this is the money line in that press release for me:<p><i>“The charges against Theranos, Holmes, and Balwani make clear that there is no exemption from the anti-fraud provisions of the federal securities laws simply because a company is non-public, development-stage, or the subject of exuberant media attention.”</i><p>For all those entrepreneurs are trying to &quot;fake it until you make it&quot; be aware that the SEC considers your strategy both fraudulent and they feel they have the jurisdiction to prosecute you. And while I doubt the SEC is going to go after every CEO that raised a Series A on a pitch deck that was pure fantasy, the people who participated in the round might bring them in if it served their purposes.