• Welcome to DOSBODS

    Please consider creating a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

One percent

Now that’s what I call fraud

Recommended Posts

https://www.dailymail.co.uk/news/article-7018811/A-9bn-lie-Blood-testing-company-boss-Elizabeth-Holmes-faces-20-years-bars.html

The country was spellbound. Two former secretaries of state, Henry Kissinger and George Shultz, invested in her business. So convinced was media mogul Rupert Murdoch, that he ploughed $125 million (£96 million) into Theranos.

Former President Bill Clinton and then-Vice President Joe Biden were among the illustrious supporters seemingly dazzled by Holmes and her vision.

Young, attractive and with a fervent self-proclaimed passion for revolutionising health care, she was feted as her generation’s Thomas Edison, inventor of the electric lightbulb.

Appearing in court last month for a pre-trial hearing, her face was wiped clean of the heavy make-up that was once as ubiquitous as the polo-necks, as if to project an aura of girlish innocence.

And the reason for this astonishing fall from grace? Her ground-breaking invention, a machine she claimed could perform hundreds of tests on just a tiny drop of blood taken from a pin-pricked finger, had been exposed as a humiliating sham, her attempts to conceal the truth laid bare in excruciating detail. Quite simply, it didn’t work.

By June 2016, to the horror of her wealthy investors, Theranos was valued at zero. Then last year it was dissolved. Holmes and her deputy, Sunny Balwani, were charged with nine counts of fraud.

Share this post


Link to post
Share on other sites

This should have been spotted a long time before it was. Sadly it is life these days that to many people want to buy into the genius drop out (yes there have been a few, Gates and Zuckerberg etc). I think the fact she is an attractive (ish) female also went a long way to raising the money. It can be summed up as style over substance, the modern world. 

The funny thing is when I have raised money or tried to raise money in the past for good technical ideas with markets it has been hard, these people seem to be able to get millions very easily 

Share this post


Link to post
Share on other sites
7 hours ago, One percent said:

https://www.dailymail.co.uk/news/article-7018811/A-9bn-lie-Blood-testing-company-boss-Elizabeth-Holmes-faces-20-years-bars.html

The country was spellbound. Two former secretaries of state, Henry Kissinger and George Shultz, invested in her business. So convinced was media mogul Rupert Murdoch, that he ploughed $125 million (£96 million) into Theranos.

Former President Bill Clinton and then-Vice President Joe Biden were among the illustrious supporters seemingly dazzled by Holmes and her vision.

Young, attractive and with a fervent self-proclaimed passion for revolutionising health care, she was feted as her generation’s Thomas Edison, inventor of the electric lightbulb.

Appearing in court last month for a pre-trial hearing, her face was wiped clean of the heavy make-up that was once as ubiquitous as the polo-necks, as if to project an aura of girlish innocence.

And the reason for this astonishing fall from grace? Her ground-breaking invention, a machine she claimed could perform hundreds of tests on just a tiny drop of blood taken from a pin-pricked finger, had been exposed as a humiliating sham, her attempts to conceal the truth laid bare in excruciating detail. Quite simply, it didn’t work.

By June 2016, to the horror of her wealthy investors, Theranos was valued at zero. Then last year it was dissolved. Holmes and her deputy, Sunny Balwani, were charged with nine counts of fraud.

Taking its time on this.

I think Madoff was pimped marched straight to jail before his trail.

Now, all things considered - level of fraud *and* fucking with health, Lizzy Liar needs  to  jailed for 200+ years.

I dont think US do pussy passes.

 

 

Share this post


Link to post
Share on other sites
18 minutes ago, ad_ceng said:

This should have been spotted a long time before it was. Sadly it is life these days that to many people want to buy into the genius drop out (yes there have been a few, Gates and Zuckerberg etc). I think the fact she is an attractive (ish) female also went a long way to raising the money. It can be summed up as style over substance, the modern world. 

The funny thing is when I have raised money or tried to raise money in the past for good technical ideas with markets it has been hard, these people seem to be able to get millions very easily 

I think it was - theres a lot of people doing biotech and whatnot. Theyd have scanned the claims and looked and walked.

This is more about the stupidity of the greatngood rather than the knowwhattheyaretalkingabout.

Look at the board of directors - buch of bullshitters, hasbeens, neverwases, mainly Pols.

 

Share this post


Link to post
Share on other sites
39 minutes ago, ad_ceng said:

This should have been spotted a long time before it was. Sadly it is life these days that to many people want to buy into the genius drop out (yes there have been a few, Gates and Zuckerberg etc). I think the fact she is an attractive (ish) female also went a long way to raising the money. It can be summed up as style over substance, the modern world. 

The funny thing is when I have raised money or tried to raise money in the past for good technical ideas with markets it has been hard, these people seem to be able to get millions very easily 

Her first substantial investment was by a family friend.

That family friend was well connected and the others invested on the back of his investment.

You tend to rely upon the opinion of others who you perceive as being experts in these matters.  The only time I thought Warren Buffet had lost it was when he bought loads of Tesco shares when it looked like their market share couldn't grow any further. He was indeed wrong that time.

If you came to me with your technical idea asking me to lob in a few quid my first question would be "Who has already invested?". If it was decent seed / VCT funds then I would rely upon their due diligence and market knowledge and jump in.  If however it was nobody then I wouldn't because I'm not in a position to assess the likely return from your idea.

Share this post


Link to post
Share on other sites
3 minutes ago, Frank Hovis said:

Her first substantial investment was by a family friend.

That family friend was well connected and the others invested on the back of his investment.

You tend to rely upon the opinion of others who you perceive as being experts in these matters.  The only time I thought Warren Buffet had lost it was when he bought loads of Tesco shares when it looked like their market share couldn't grow any further. He was indeed wrong that time.

If you came to me with your technical idea asking me to lob in a few quid my first question would be "Who has already invested?". If it was decent seed / VCT funds then I would rely upon their due diligence and market knowledge and jump in.  If however it was nobody then I wouldn't because I'm not in a position to assess the likely return from your idea.

Excellent post. That also explains why this lot seem to keep getting millions/billions despite burning through cash and it appearing to be questionable tech done better by others:

https://www.magicleap.com

Share this post


Link to post
Share on other sites

Blokes love investing in "gadget" type companies - it has always been so in the stock market.

A black box that can track your car for insurance, a black box that can save you water, a black box that does magical things!

I don't know how it works, but it'll make us a fortune! Take my money!

Share this post


Link to post
Share on other sites
24 minutes ago, Frank Hovis said:

Her first substantial investment was by a family friend.

That family friend was well connected and the others invested on the back of his investment.

You tend to rely upon the opinion of others who you perceive as being experts in these matters.  The only time I thought Warren Buffet had lost it was when he bought loads of Tesco shares when it looked like their market share couldn't grow any further. He was indeed wrong that time.

If you came to me with your technical idea asking me to lob in a few quid my first question would be "Who has already invested?". If it was decent seed / VCT funds then I would rely upon their due diligence and market knowledge and jump in.  If however it was nobody then I wouldn't because I'm not in a position to assess the likely return from your idea.

That  is a very valid point and a good post. 

 

Share this post


Link to post
Share on other sites

This is Toy Town stuff compared to Bear Stearns or Lehman brothers.

None of their financial products worked either but no one went to jail for losing billions of dollars. 

I assume the the real crime here is conning the rich just like Bernie Madoff.

Share this post


Link to post
Share on other sites
Posted (edited)
1 hour ago, ad_ceng said:

This should have been spotted a long time before it was. Sadly it is life these days that to many people want to buy into the genius drop out (yes there have been a few, Gates and Zuckerberg etc). I think the fact she is an attractive (ish) female also went a long way to raising the money. It can be summed up as style over substance, the modern world. 

The funny thing is when I have raised money or tried to raise money in the past for good technical ideas with markets it has been hard, these people seem to be able to get millions very easily 

1) Connections, someone putting in a good word. She had good connections,

2) Then being recommended to more people who know nothing about the technology but trust the person recommending,

3)The bigger and more outrageous the sum the easier it is to get. Don't approach a billionaire for $20k

Edited by Hopeful

Share this post


Link to post
Share on other sites

Thanks, hadn't heard of this but will buy the book.

I've always wondered if I've got some sort of personality defect as I almost admire master fraudsters like her. Has anyone read 'The Smartest Guys in the Room' (Enron scandal). Another great book.

Just now, Happy Renting said:

I wonder when Investors will spot that Uber has not made, and never will make a profit.

Uber trade is beyond parody. Zero sympathy for any of these greedy bastards. Has nobody every stopped and asked themselves how often they get a taxi - versus something of similar market value for example how often they use Google?

Share this post


Link to post
Share on other sites
2 hours ago, spygirl said:

I think it was - theres a lot of people doing biotech and whatnot. Theyd have scanned the claims and looked and walked.

This is more about the stupidity of the greatngood rather than the knowwhattheyaretalkingabout.

Look at the board of directors - buch of bullshitters, hasbeens, neverwases, mainly Pols.

 

yup

 

http://fortune.com/2015/10/15/theranos-board-leadership/

of Theranos’ 12-person board - average age, 80

 former Secretary of State Henry Kissinger

 former Secretary of Defense Bill Perry

former Secretary of State George Shultz

former Senator Sam Nunn

former Senator Bill Frist

former Navy Admiral Gary Roughead

former Marine Corps General James Mattis

 

 

 

 

 

 

 

 

Share this post


Link to post
Share on other sites
15 minutes ago, PatronizingGit said:

yup

 

http://fortune.com/2015/10/15/theranos-board-leadership/

of Theranos’ 12-person board - average age, 80

 former Secretary of State Henry Kissinger

 former Secretary of Defense Bill Perry

former Secretary of State George Shultz

former Senator Sam Nunn

former Senator Bill Frist

former Navy Admiral Gary Roughead

former Marine Corps General James Mattis

 

 

 

 

 

 

 

 

Looks like it became a bit of a club to be seen among - clever stuff

Share this post


Link to post
Share on other sites
2 hours ago, ccc said:

https://www.bbc.co.uk/news/business-your-money-48186086

This is fraud. Well it seems she provided the fraudsters with her log in details :o

Yet still gets the money back. 

Lets have a lookie.

First off, this is not some little old lady being defrauded by indian scammers. Shes 49.

Next, the money was took from a business account.

And ... she gave them the account details:

But before she knew it, the money had gone, stolen by thieves who'd tricked Alex into believing they were calling from BT before persuading her to hand over sensitive security details to gain access to her account.

Now that is gros stupidity on behalf of the woman. Yes, Santanter might have a shit fraud detcttion system - every thing about San is fucking shit.

However .... all business transaction Ive dealt with are via quotes. Bar the odd one where Ive transferred cash to supplier when I did not.cout not get an account in place in time.

Maybe this woman was not clued up on finance ..... bit naive .... pin  money job ....

https://uk.linkedin.com/in/alex-luke-24ba14b

A bespoke recruiter with over 25 years recruitment experience. I was approached to set up my own business in 2007/8 as a niche, bespoke recruiter to HNWI within financial services and family offices as well as private households.
AKL Search is also a named niche recruiter for a cross section of global investment banks retained to recruit for high profile roles within the executive offices. Now working alongside Sturgeon Ventures LLP to assist in onboarding new teams and managing in house recruitment requirements for offices of private equity/corporate finance and investment advisory firms. In addition to providing an incubator service to clients Sturgeon Ventures LLP together with AKL Search Limited offer interim, contract and permanent recruitment for compliance analysts, COO's and Financial Directors in addition to PA's and Business Assistants.

Specialties: Interviewing skills
Matching skills
Excellent Sales
Total discretion
High profile roles
Not 9-5 recruitment but 24/7
Target driven
Fluent French
Boutique in approach with wide reach

 

https://www.thisismoney.co.uk/money/beatthescammers/article-4358442/Santander-fraud-victims-tell-anguish.html

t hasn't been easy, but Alex Luke has always put on a brave face for her two children. 

For nearly ten years, she has been the sole breadwinner in her household, working long hours in the recruitment business she set up after her divorce in 2008.

Share this post


Link to post
Share on other sites

The international banking system.  I say, it largely acts as a parasite, taking a cut from every transaction.  They say 'Ah, but we do so much more, performing due diligence on investments, and the very process of going over potential candidates for investments and then investing in the best, actually creates significant value for the world and justifies the financial industry's size and compensation'.

Except that, despite sucking up some of the best candidates from top universities around the world, in pretty much all subjects ranging from material science to ancient history, they still manage to completely fuck it up over and over again, leading to substantial loss of value.  Oh, but only loss of value to 'normal people' (pensions, etc), not actual loss of value to their pay packet.

And this is particularly visible in cases of fraud.  Over and over again the financial system appears to have the wool pulled over its eyes.  

We'd be better off if it went back to being no more than a percent or so of GDP.  

Share this post


Link to post
Share on other sites
6 minutes ago, dgul said:

The international banking system.  I say, it largely acts as a parasite, taking a cut from every transaction.  They say 'Ah, but we do so much more, performing due diligence on investments, and the very process of going over potential candidates for investments and then investing in the best, actually creates significant value for the world and justifies the financial industry's size and compensation'.

Except that, despite sucking up some of the best candidates from top universities around the world, in pretty much all subjects ranging from material science to ancient history, they still manage to completely fuck it up over and over again, leading to substantial loss of value.  Oh, but only loss of value to 'normal people' (pensions, etc), not actual loss of value to their pay packet.

And this is particularly visible in cases of fraud.  Over and over again the financial system appears to have the wool pulled over its eyes.  

We'd be better off if it went back to being no more than a percent or so of GDP.  

Indeed and all too often it has appeared complicit along with its so called regulators.

Share this post


Link to post
Share on other sites
14 minutes ago, dgul said:

The international banking system.  I say, it largely acts as a parasite, taking a cut from every transaction.  They say 'Ah, but we do so much more, performing due diligence on investments, and the very process of going over potential candidates for investments and then investing in the best, actually creates significant value for the world and justifies the financial industry's size and compensation'.

Except that, despite sucking up some of the best candidates from top universities around the world, in pretty much all subjects ranging from material science to ancient history, they still manage to completely fuck it up over and over again, leading to substantial loss of value.  Oh, but only loss of value to 'normal people' (pensions, etc), not actual loss of value to their pay packet.

And this is particularly visible in cases of fraud.  Over and over again the financial system appears to have the wool pulled over its eyes.  

We'd be better off if it went back to being no more than a percent or so of GDP.  

Bit too Jeremy Cuntbyn ... jowever ...

The original ButtonWood in TE always used to stress that, historically, banking./finance only accounted for ~20% of the economies profits.

He was repeatedly stressing this in the run up to 2007 where, despite the likes of Martin Wolf assuring everyone that finance was stable and correctly marked to market ..... everything went tits up.

As far as sucking up al the talents in maths, astro physics geography lesbian studies .... I always used to make the point in that it should be mainly recruiting good, experience software people. You dont integration for banking - just integers and tallies/transactions. I was right. All these high paid people finance from 1985ish to 2007 were wrong.

 

 

Share this post


Link to post
Share on other sites
3 hours ago, ccc said:

https://www.bbc.co.uk/news/business-your-money-48186086

This is fraud. Well it seems she provided the fraudsters with her log in details :o

Yet still gets the money back. 

I am a little sympathetic.

See, it is nearly impossible to get a bank account.  You've got to jump through so many hoops that many people don't bother -- or rather, once you've done it once or twice you try not to keep doing it.  Sure, you might need to for when you move your mortgage (say), but that includes reams of evidence showing who you are, where the money comes from, etc.

Okay, it isn't actually that difficult, but you still need to have prior history, employment records etc.  Lots of evidence for who you are, where you live, etc.

And all that is a good idea -- it is part of the Know Your Customer / Anti-Money Laundering regs, and it is needed to make sure that people aren't processing proceeds of crime, etc.

Yet time and time again, for this sort of fraud the money just disappears.  Surely, I think, they could just chase the money to the next bank account and arrest them?   Or maybe to the next account after?  But no.  It appears that it might well be difficult for me to open a bank account, but it is relatively easy for the fraudsters.

Frankly, I think it is the banks problem.  I live in a world where everyone is decent and finds it difficult to open a bank account.  I'd really really like to have an option on all my accounts called 'I'll only transfer money to someone that you've vetted (as the UK banking industry).  Never to strange people overseas, never to some account at a weird offshore banking trust which banks at the London branch of Seychelles national agricultural bank.  Just normal people like me, or businesses like normal UK businesses.  But they don't offer that option.  They only offer the 'option' called 'and then we'll just send it anywhere, because we're, like, the international banking system and what you see is what you get'.

Pretty typical, though.  The solution to a problem becomes 'lots more effort and trouble for people that weren't the problem in the first place', and 'business as usual' for the people that were.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Recently Browsing   0 members

    No registered users viewing this page.