Clinton Donor, Obama Entrepreneurship Ambassador Charged With Massive Fraud


Elizabeth Holmes / Getty Images


Elizabeth Holmes, a Clinton donor who was named a Presidential Ambassador for Global Entrepreneurship under former President Barack Obama, has settled with the Securities and Exchange Commission after being charged with "massive fraud" on Wednesday.

Holmes, 34, was the founder and CEO of Theranos, a privately owned Silicon Valley health tech company once valued at $9 billion. The SEC alleges the company deceived investors when raising more than $700 million from late 2013 to 2015, and as a result, Holmes will pay a $500,000 fine and be barred from serving as a director or officer of a public company for 10 years, according to CNBC.

The SEC alleged that Theranos raised more than $700 million from late 2013 to 2015 while "deceiving investors by making it appear as if Theranos had successfully developed a commercially-ready portable blood analyzer that could perform a full range of laboratory tests from a small sample of blood."
The SEC also said Theranos deceived investors by "hosting misleading technology demonstrations, and overstating the extent of Theranos' relationships with commercial partners," noting that at times Theranos' technology performed could only do about 12 tests of the over 200 tests advertised. The SEC also said former Theranos President Ramesh "Sunny" Balwani and Holmes lied about the extent of Thernos' involvement with the military.


Theranos previously settled a lawsuit with one of its biggest investors, Partner Fund Management, which invested more than $96 million in Theranos in 2014. Holmes has already said she plans to give away shares to the "most significant shareholders."

Theranos also settled with the state of Arizona for $4.8 million last year over consumer fraud claims pertaining to its "flawed" Edison device blood tests.

"The Theranos story is an important lesson for Silicon Valley," Jina Choi, director of the SEC's San Francisco regional office, said in a statement. ‘"Innovators who seek to revolutionize and disrupt an industry must tell investors the truth about what their technology can do today, not just what they hope it might do someday."

Obama invited Holmes to the White House back in 2015, where she was named a Presidential Ambassador for Global Entrepreneurship. The Clintons have also embraced Holmes, including Bill Clinton, who had a lengthy discussion with her at the Clinton Global Initiative’s annual meeting in 2015. Holmes talked about bringing "equality" to the health care sector.

Holmes was also scheduled to host a $2,700-a-head fundraiser for Hillary Clinton in March 2016 at the Theranos Palo Alto, California headquarters, an event Chelsea Clinton was scheduled to attend. However, the fundraiser changed locations after her campaign was criticized for holding an event at the offices of a company under federal investigation.

Holmes remained a host for the fundraiser, and Chelsea Clinton still attended the event.

"[The event] is not connected to a specific company or policy, but a chance to talk directly to women in tech," the Clinton campaign told CNBC at the time. "We frequently send initial invitations while host committees are still being formed and locations finalized. This was never a health care event and the location wasn't set. It will not be at Theranos."

The Washington Free Beacon reached out to Obama's office for comment but did not receive a response by time of publication.

[–] UchihaMadara 39 points (+41|-2)  ago 

Meanwhile Martin Shkreli gets 6 years in prison.

[–] BentAxel 7 points (+7|-0)  ago 

Thanks for providing a standard to this. Now it's even worse.

[–] Colonel_Questionmark 3 points (+4|-1)  ago 

The SEC can only impose civil actions, not criminal proceedings. Hopefully the FBI is still investigating the criminal matters.

[–] worthlesshope 1 points (+1|-0)  ago 

Shkreli was also forced to forfeit about $7.4 million in assets.

[–] Grunge 0 points (+0|-0)  ago 

lol @ the FBI doing something useful

[–] Scald85 0 points (+0|-0)  ago 

Because penis vs vagina. The modern West is a matriarchy about to get fucked.

[–] TerdWilson 0 points (+0|-0)  ago 

Shkreli, I believe was used as a pawn to legitimize socialized health care. His arrogance was justified as that he is not the only one.

He simply went his own way and didnt play ball.

[–] CheeseboogersGhost 19 points (+19|-0)  ago 

Jews ripping off investors?? You don't say. Its like anudda shoah on the goyim

[–] TheSeer 2 points (+2|-0)  ago 

Ever heard 'Elizabeth' Holmes speak? Ever seen 'her' Adam's apple?

[–] Oh_Well_ian 6 points (+6|-0)  ago 

[–] PrettyBigDouche 1 points (+1|-0)  ago 

I can't find one video of "her" without a turtleneck on or something else covering her neck. Not one.

[–] Colonel_Questionmark 1 points (+1|-0)  ago 

That explains the need for the turtlenecks.

[–] edistojim 10 points (+10|-0)  ago 

And all she's left with is a measly $699,500,000.00. That'll teach the thieving bitch.

[–] Pwning4Ever 4 points (+4|-0)  ago 

lol, good thing it doesn't work like that. She also loses the firm which is where the money should have gone to.

She has absolutely had her net worth tarnished. I wouldn't be surprised if investors start taking her ass to court now.

[–] edistojim 1 points (+1|-0)  ago 

Court? Scares the fuck out of me. Especially sitting on the beach in the French Riviera because a civil suit in the US don't mean shit there, money transferred off shore and all…..

[–] MultipleScorgasms 0 points (+0|-0)  ago 

She was forced to give up millions of shares, prevented from being an officer of any company for 10 years, and blocked from receiving income from sale of shares until defrauded investors are reimbursed.

[–] edistojim 0 points (+0|-0)  ago 

Probably down to her last 50 million. And life is tough.

[–] WindMillOfPeace 10 points (+11|-1)  ago 

Jesus, she looks like chelsea clinton's hotter sister.

[–] ipsocannibal 12 points (+12|-0)  ago 

Female Zuckerburg with the crazy dead-inside eyes to match.

[–] Machz 9 points (+9|-0)  ago 

I think you meant to say Chelsea Hubble.

[–] WindMillOfPeace 3 points (+3|-0)  ago 

Yup, that's the one.

[–] worthlesshope 4 points (+4|-0)  ago 

still ugly

[–] WindMillOfPeace 7 points (+7|-0)  ago 

That's what I was getting at, she has a face only a jewish mother could love.

[–] Scine 2 points (+2|-0)  ago 

Caitlyn Jenner could be considere "Chelsea Clinton's hotter sister". Have you seen that ugly cunt?

[–] WindMillOfPeace 0 points (+0|-0)  ago 

That's starting to push it a little. Mainly because the resemblance isn't as strong there.

[–] prairie 5 points (+5|-0)  ago 

"Hey, want to gamble? You'll win $700 million, and if you're caught you pay less than a tenth of a percent penalty. I know, it's quite a risk..."

[–] HappyMealBullshit 4 points (+4|-0)  ago 

We give taxpayer funded bonuses to heads of banks that destroyed our economy. This doesn't really sound out of line with normal federal government behavior.

[–] ForTheUltimate 3 points (+3|-0)  ago 

That's not a fine. That's a cheap crime-laundering.

You can't prosecute someone twice

[–] JerkSock 3 points (+3|-0)  ago 

I if I recall properly, Kissinger was on the board of directors...

[–] PrettyBigDouche 1 points (+1|-0)  ago 

So we knew it was trustworthy from the start...

BTW, I don't buy everyone is a tranny but Kissinger may very well be as is this "bitch"

[–] fusir 3 points (+3|-0)  ago 

Why isn't this being treated as a civil matter?

[–] Narrative-Collapse 2 points (+2|-0)  ago 

She is also paying almost $5 million to the state of Arizona and being sued by all the investors.

[–] the_sharpest_knife 1 points (+1|-0)  ago 

She'll never do that again. /s

[–] Yuke 1 points (+1|-0)  ago 

I saw in the BBC article that she was worth 4.5bn some years ago. That makes it seem even more ridiculous.

[–] White-Supremacist 1 points (+1|-0)  ago 

"Remember kids, crime doesn't pay... any small sum."

[–] rspix000 [S] 1 points (+1|-0)  ago 

[–] Spaceballs-1 1 points (+1|-0)  ago  (edited  ago)

"# freepharmabro" !

[–] jackofdiamonds 1 points (+1|-0)  ago 

She personally didn't put all that money in her pocket. She's worth nowhere near that amount. If the company hadn't already spent it, they could have fined the company for all of it to return to the investors, but trying to do that now would just bankrupt the company.

[–] rspix000 [S] 1 points (+1|-0)  ago 

Too bad the Ferguson defendants don't enjoy that same level of excuse.

[–] R34p_Th3_Wh0r1w1nd 1 points (+1|-0)  ago 

I bet the judge didn't get a fat paycheck either...

[–] netengdj 1 points (+1|-0)  ago 

ummm don't they have to pay the fine IN ADDITION to restitution of the stolen money? otherwise yea this is ridiculous.

[–] NoisyCricket 1 points (+1|-0)  ago 

In a world with justice should be require to pay back more than a billion dollars.

[–] Thisismyvoatusername 0 points (+0|-0)  ago 

To be fair, that is what they accused her of. She was never charged with it, much less convicted of it. Since it wasn’t turned over to the DoJ for a criminal prosecution and since the settlement is for such a relatively small amount, I suspect their case was not nearly as strong as their accusations make it sound.

[–] rspix000 [S] 0 points (+0|-0)  ago  (edited  ago)

Or regulators work for people who need campaign donations from the med tech industry.

the company cherrypicked which data to report to regulators, a major no-no for any company trying to prove that its medical technology actually works.

she exaggerated company earnings by 1000 times to investers

[–] PrettyBigDouche 0 points (+0|-0)  ago 

What kind of person wears the same outfit in every fucking interview? A tranny hiding an Adams Apple? She should be in prison for being a lying scam artist. She's no better than a Nigerian Prince scammer. Cunt.

[–] theoldones 0 points (+0|-0)  ago 

she got MK ultra eyes

[–] coolmoe 1 points (+1|-0)  ago 

Thank you never stick your dick in crazy.

Those are almost the archetype for crazy eyes IMHO.

[–] 0110001111 0 points (+0|-0)  ago 

She loses control of the company as well. If the company is 'worth' 500mm and she gets fined 500K, she loses a big pocket of change. It's hard to tell how much she personally made from the deal,. and how much is tied to company stock,etc. Also, really bad case of the crazy eyes

[–] Inquisitioner 0 points (+0|-0)  ago 

She only loses "majority" control. Could be a tiny penalty in reality.

[–] Pwning4Ever 0 points (+0|-0)  ago 

A few years ago her net worth was in the billions, she was one of Time's most influential people, the whole 9 yards. The reputation she has done to female entrepreneurs more than makes up all the money she has pocketed though. Silicon Venture Capitalist will think twice before jumping on some woman's snake oil scam just because the media wants a strong woman.

[–] thewhitewizzard 0 points (+0|-0)  ago 

I think this is an individual fine, not the company fine.

I think that is the difference here.

[–] discoball 1 points (+2|-1)  ago 

Shkreli was personally fined 7.3 million, and he made his investors money.

[–] thewhitewizzard 0 points (+0|-0)  ago 

That may be, I don't have extensive knowledge on that case. In this case, If it's like I recall, and the fine is a personal fine then it seems appropriate. If it was a fine on the company, then it isn't enough.

I don't have financial information on Shkreli, nor of the case other than he was convicted and has years in prison.