Elizabeth Holmes, the former CEO of the blood-testing company Theranos, is accused of defrauding investors out of hundreds of millions of dollars through false and misleading statements about the company's technology. Here are the top 5 facts about how Elizabeth Holmes' is accused of defrauding investors:

 

Top 1# Misleading statements about the capabilities of the Edison device

Holmes and other executives at Theranos claimed that the company's blood-testing device, called the Edison, was capable of performing a wide range of diagnostic tests using just a few drops of blood. However, in reality, the device was inaccurate and unreliable.

Top 2# Fabricating Data

To conceal the truth about Edison's capabilities, prosecutors allege that Holmes and other executives at Theranos fabricated data about the device's performance.

Top 3# Inflating the company's valuation

By making false and misleading statements about the company's technology and financial condition, Holmes and other executives at Theranos were able to inflate the company's valuation and attract hundreds of millions of dollars in investments. She is good at creating FOMO phenomenon.

Top 4# Misuse of investor funds

Instead of using the invested funds to develop and improve the Edison device, prosecutors allege that Holmes and other executives at Theranos misused the money for personal expenses to cover up the company's problems.

Top 5# Fraudulently obtaining regulatory approvals

To obtain regulatory approvals for the Edison device, prosecutors allege that Holmes and other executives at Theranos submitted fraudulent data and misleading information.

 

Overall, the alleged fraud at Theranos was a complex scheme that involved numerous fraudulent actions designed to mislead investors, regulators, and the public about the company's technology and financial condition. If convicted, Holmes and other executives at the company could face significant prison time and fines for their role in the fraud.

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