Sackless SEC Cuts Sweetheart Deal with Slimy Theranos CEO Elizabeth Holmes
March 14, 2018
Today it was announced the Securities Exchange Commission (SEC) cut a deal with Theranos CEO Elizabeth Holmes. There is only one way returning shares of (worthless) stock, paying a $500,000 fine and 10 year ban on serving as an officer or director of a public company (Theranos is a venture capital funded privately held startup) is acceptable; and, that’s if Holmes flipped on the venture capitalists that funded healthcare fraud.
According to the FBI my venture capital-funded startup whistleblower case showed previously unknown patterns of fraud to the United States Department of Justice (DOJ). This in turn prevented startups Theranos and Uber from being acquired or Initial Public Offering (IPO) PRIOR to their CEOs being investigated or charged. This is progress but still not enough.
In my case, Johnson & Johnson’s Ethicon’s Acclarent, paid an $18 million fine, removed a fraudulently obtained medical device from the global market and convicted two Silicon Valley executives, William (Bill) Facteau and Patrick (Pat) Fabian. The problem remains that pending Facteau and Fabian’s appeals, they are free to work. They’re both still employed for venture capital-funded healthcare startups, Facteau is CEO at Earlens and Fabian is at COO at NxThera.
The world’s largest venture capital firm, by their own assertion with $17 billion in outlying capital, New Enterprise Associates (NEA) knowingly and willingly funded healthcare fraud at Acclarent and still in-part funds Bill Facteau at Earlens.
On top of healthcare fraud, NEA is paid to kill women Essure and Gynecare.
The SEC is encouraging, replicating and rewarding venture capital-funded startup fraud if they continue to allow startup executives back into the industry. Just like Facteau and Fabian, Holmes too will still be able to hold executive positions in privately held startups. Again, the only way it’s acceptable for Holmes to avoid jail is if she flipped on the venture capital firms that fund Theranos; and, the SEC has the sack to go after them. Venture capital firms usually also hold startup board positions as a means to protect their investment. It’s highly unlikely that board members did not know that Theranos was only FDA cleared for one test but ran & profited from another 249 tests without FDA clearance.
Time for the SEC to sack-up and go after the venture capitalists that knowingly and willingly fund healthcare fraud.