Elizabeth Holmes found guilty of fraud and conspiracy in blockbuster Silicon Valley trial

It took more than 50 hours of deliberations over seven days, but yesterday a jury found Theranos founder Elizabeth Holmes guilty on four charges of criminal fraud. Basically, they concluded that Holmes intentionally lied to investors to raise gobs of money for her company, a blood testing startup that promised to revolutionize health care.

Spoiler alert: It didn’t. And according to the jury, Holmes knew that it wouldn’t work out even as she touted the company’s tech capabilities to raise nearly $1 billion from the likes of Rupert Murdoch, the DeVos family, and the Waltons of Walmart fame.

The details: Holmes was convicted of three counts of wire fraud and one count of conspiracy to commit wire fraud. She was found not guilty on four other charges and the jury couldn’t agree on a verdict for three charges. So Holmes went 4/11.

How long will Holmes be behind bars? Each of those guilty counts could carry a sentence of 20 years in prison, but legal experts say she’ll probably serve less time than that, given typical sentences in white-collar fraud cases like hers.

How we got here

When she was 19, Holmes dropped out of Stanford to build a device that could perform hundreds of diagnostic tests more cheaply and more accurately than anything on the market. She was labeled the youngest female self-made billionaire by Forbes and drew comparisons to Steve Jobs.

But things unraveled when WSJ investigations in 2015 and 2016 exposed Theranos’s vaunted technology for not actually working. Then came a slew of lawsuits and an indictment, and in 2018 the company dissolved in a thundercloud of disgrace.

Big picture: To many, Holmes’s story reflects the excesses of a venture capital industry that will plug any charismatic founder with a geyser of cash despite their ideas being untested. But Silicon Valley insiders told Bloomberg that, despite Holmes’s conviction, that faucet won’t be turned off anytime soon. The lure of exponential returns is that powerful.

Hot this week

The Myth of Perfect Security

Perfect security is a myth, and focusing on resilience rather than prevention can better protect your organization from inevitable breaches.

Why Traditional Passwords Are Failing Us

Password fatigue from complex rules often causes more security breaches than weak passwords, requiring a shift toward user-friendly tools and behaviors.

Why Your Employees Are Your Best Security Defense

Empowering employees with security awareness training often provides better protection than stacking more technology, turning human factors from a weakness into your strongest defense.

Why Most Security Awareness Training Fails and What to Do About It

Security awareness training often fails because it focuses on knowledge rather than behavior, but shifting to a behavior-based approach can lead to better outcomes and fewer incidents.

The Myth of Multifactor Authentication Security

Multifactor authentication enhances security but is not foolproof, as it can be bypassed through social engineering and technical exploits. Understanding its limitations and adopting stronger methods is essential for effective protection.

Topics

The Myth of Perfect Security

Perfect security is a myth, and focusing on resilience rather than prevention can better protect your organization from inevitable breaches.

Why Traditional Passwords Are Failing Us

Password fatigue from complex rules often causes more security breaches than weak passwords, requiring a shift toward user-friendly tools and behaviors.

Why Your Employees Are Your Best Security Defense

Empowering employees with security awareness training often provides better protection than stacking more technology, turning human factors from a weakness into your strongest defense.

Why Most Security Awareness Training Fails and What to Do About It

Security awareness training often fails because it focuses on knowledge rather than behavior, but shifting to a behavior-based approach can lead to better outcomes and fewer incidents.

The Myth of Multifactor Authentication Security

Multifactor authentication enhances security but is not foolproof, as it can be bypassed through social engineering and technical exploits. Understanding its limitations and adopting stronger methods is essential for effective protection.

Why MFA Is Not Enough Anymore

Multi-factor authentication is no longer a silver bullet for security as attackers develop new bypass methods, requiring a layered defense approach with phishing-resistant tools and continuous monitoring.

Why Phishing Still Works and What to Do About It

Phishing remains a top threat because it exploits human psychology, not just technical gaps. Shifting focus to employee awareness and habits can build stronger defenses than relying solely on technology.

Rethinking Password Security

Complex password rules often increase risk by encouraging poor habits. Learn how password managers and multi-factor authentication offer more practical protection for organizations of all sizes.
spot_img

Related Articles

Popular Categories