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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