Improving The Odds That Auditors Will Sooner Detect Fraudsters Like Elizabeth Holmes And Martin Shkreli…

The pop science magazine Psychology Today has a nice if shortish piece out on what may be gleaned — by auditors — as risk factors for Vyera / Theranos style frauds, at the CEO seat.

It is worth reading, if for nothing else than its well-placed praise for Amanda Seyfried in “The Dropout“.

Here’s the bit I found most interesting (after listing the factors to watch out for in a potential fraudster CEO):

…It’s clear that the public is fascinated by the Theranos debacle and with Holmes, specifically. And maybe with good reason. One main conclusion of the study is that auditors looking for fraud should expand their focus beyond economic incentives to include psychological risk factors exhibited by the people running the companies. Understanding why Holmes did what she did and learning to spot people like her in advance is one way to help prevent another Theranos from happening….

In candor, I must admit that a fair bit of the way the compensation of ’34 Act public company auditors works in the SEC rules… seems almost specifically designed to incentivize audit partners to “look the other way“, when an aberrant CEO is promoted… or worse, founds… what becomes… a public company. [Think Elon Musk here, as well.]

Onward, into the cool sunshine — with my youngest grown son now home for ten wonderful, adventure filled days! Woot!

Elizabeth Holmes’ Sentencing Date: Pushed Back One Month — Now Oct. 17, 2022.

This will effectively mean that her sentencing will be only a month ahead of Sunny’s.

It also will give Billy The Kid an additional month to complete his trivia quiz (grin!), on her — and for us to get it published in the week prior to her sentencing. Most likely, the BoP reports on her are raising additional questions, and so the time-line has been elongated slightly:

…CLERK’S NOTICE CONTINUING HEARING.

Sentencing as to Elizabeth A. Holmes set for 9/26/2022 is continued to 10/17/2022 at 1:30 PM in San Jose, Courtroom 4, 5th Floor before Judge Edward J. Davila….

Now you know. Off, now — to see stunning next gen space ‘scope full color deep space photo

Sunny Found Guilty On All Twelve Counts, Including Fraud On Patients — Top Charge.

With the fraud on paying patients guilty verdict, he may actually do more time that Elizabeth Holmes. [Here is Sunny’s full verdict form, as signed by the foreperson.]

In a small victory, Ms. Holmes was not found guilty of defrauding patients. Even so, each of them is eligible for well over two decades in prison, just on the size ($ billions) of the securities / federal wire frauds.

His bond is going up as well:

…The Court refers the matter to the Probation Department for preparation of a Pre-Sentencing Report and sets Sentencing for November 15, 2022, at 10:00 AM. Court will increase bond to $750,000, and bond package due by July 14, 2022….

Onward… but, this is… justice, now arriving.