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Not long ago, we were living by proxy of the 1 percent watching “Lifestyles of the Rich and Famous” or “Cribs.” Now we obsess over the details of how they were deceived. In San Jose, California, where Ms. Holmes’ trial was pending last month, numerous book clubs reading “Bad Blood” about Theranos’ downfall made pilgrimages to catch a glimpse of her in the courtroom. An enthusiastic contributor told me he was a “fan of white collar crime.”
The bubbling enthusiasm for Grift,”murderers”or fans of true murder stories. We are relieved that we are not victims. Few among us could lose millions – or hundreds of millions – on a dubious startup bet.
“Psychological distance makes us laugh at things we’d be ashamed of, embarrassed or hurt if it happened to us,” said Peter Atwater, an assistant professor of research on trust in decision-making at the College of William & Mary. “In the end, some of the rich were deceived as much as we were, the poor.”
For so-called fans of white-collar crime, the starter scam ball offers an increased reward for them to feast on. There is a recent revelation that Ozy executive impersonates a YouTube representative in a meeting with Goldman Sachs to secure an investment. HeadSpin, the software company founded by Manish Lachwani, has fake invoices used to inflate its revenues to raise $60 million in funding. last criminal indictment. (HeadSpin said it was returning the funds and collaborating with investigators.) There are fake insurance reimbursement claims on uBiome, a poop-testing startup that officials say has misled investors about their business to raise $65 million, and prosecutors have sparked charges. them more 40 scams in February. Theranos have private detectives and legal bullying tactics to intimidate informants. according to the last court statement.
They follow a formula as old as “Music Man”. A charismatic founder portrays themselves as a visionary destroyer. Ms. Holmes said Theranos’ blood analyzers can quickly and inexpensively perform hundreds of medical tests from a single drop of blood. This phrase appealed to people like General James Mattis, who witnessed see the potential to save lives on the battlefield, or Steve Burd, former CEO of Safeway. who witnessed He said putting the machines in stores would open up an exciting new business for the grocery chain.
Once a wealthy person buys, the founder can use the credibility of this philanthropist to steadily gather a strong backer every time. In the Theranos case, former Secretary of State George Shultz, introduced To his friends at the Hoover Institute, including Ms. Holmes, Henry Kissinger, and Mr. Mattis. Everyone assumes that the first investor has asked all the hard questions. Further research is not considered a trade secret.
Claims can be flimsy. Theranos projected revenue of $990 million in 2015. The truth revealed in court was close to zero. Ozy Media claimed to have written the first stories about influential people like Trevor Noah and Alexandria Ocasio-Cortez. information technology did not have. Jessica Richman, co-founder of uBiome, told reporters that she qualifies for the “Under 30” and “Under 40” lists. According to the indictment, he was over 40 years old. Mr Neumann promised WeLive, WeWork’s apartment-side project, will generate $600 million in revenue by 2018.We Cult” a book about the company. It never expanded beyond two buildings with a few hundred units.
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