Elizabeth Holmes Fraud Trial (QUESTIONS AND ANSWERS)

[@WhiteCollarAdviceOfficial]

1:12 Why would Elizabeth Holmes go to trial? 2:17 How much do you think her defense attorneys are making? 4:07 What is Elizabeth Holmes (or any federal defendant) going through every day? 6:05 How will Elizabeth Holmes make money again? 9:58 Are there any benefits to going through through sentencing and federal prison? 12:20 What will federal prison be like for Ms. Holmes? 15:49 What could Ms. Holmes have done differently?

[@louisreuter8197]

Thank you Justin! What will you cover next in this case???

[@WhiteCollarAdviceOfficial]

@@louisreuter8197 good question! When I know, you’ll know!

[@amyturbiner6364]

Terrific analysis. I was wondering why she would not just take a deal and try to cooperate against Balwani. The evidence seems so overwhelming. Just love your insights!! Keep these coming.

[@WhiteCollarAdviceOfficial]

The time to take a deal has passed. In time, she may regret it. Someone, somewhere convinced her she could win. Maybe she will.

[@Courage2006]

@@WhiteCollarAdviceOfficial I imagine any deal would have involved substantial jail time. The evidence against both her and Balwani is substantial. I doubt the state was willing to give a deal to the CEO in order to convict an underling. Especially, given that the state believes they can convict both without eithers testimony. Basically, if the government doesn't send her to jail for at least 10 years there will be huge political blow back. More importantly, they believe she is guilty and she is the face of this type of fraud. Her crimes are too public and she is too famous for her to get a plea deal that doesn't include a long prison sentence.

[@davidhutchinson5233]

Thoughtful and insightful as usual Justin. Thanks.

[@WhiteCollarAdviceOfficial]

Thanks bud.

[@louisreuter8197]

Totally agree!

[@sandrapaperny5023]

Love the glasses!!

[@louisreuter8197]

Great gift!

[@WhiteCollarAdviceOfficial]

Me too!

[@MajinHico]

Thanks man. This is good stuff. You answered the questions that I had in mind, but no one answered and you did.

[@WhiteCollarAdviceOfficial]

You're welcome. I am pleased to know you found value in the video!! Thank you.

[@lisadellaratta495]

Just found your channel today and I freaking love it!!!!!! Watched your entire Dr. Phil interview so I feel like I know you now. Excited to binge watch all your stuff tonight. ❤️🇱🇷 Pensacola, Fl

[@WhiteCollarAdviceOfficial]

You’re kind, thank you!! I appreciate you taking the time to write me. Thank you for reviewing the content our team produces. More to come. We always welcome feedback! Best, Justin

[@TristouMTL]

Awwww... the best reason (aside from, say, the sun) for wearing sunglasses that I've ever heard of. I hope your wife watches your video!

[@WhiteCollarAdviceOfficial]

Thank you so much!! With a subtle suggestion from me, she watched!!

[@internetpolification]

You allude to your being convicted of a crime for which you were guilty? Have you ever disclosed what the crime was?

[@WhiteCollarAdviceOfficial]

Yes, I have covered it at length on our website and through books our team has produced. It is also covered in many of the videos on this channel. As a result of my experience through prison, I became committed to helping others better prepare for their own experience. To learn more about why I went to federal prison. check out this film The Esquire Channel produced: kzbin.info/www/bejne/aZ3CYaSVg8eWj7M

[@beachbum1523]

When I look at the people who invested in Theranos, like George Schultz, Henry Kissinger, Bill Clinton, et. al., I'm left to wonder why none of them ever stopped to question whether the machine worked. It's not like these were people who could easily be duped.

[@WhiteCollarAdviceOfficial]

It is easy, I guess, to buy into the hype and forego due diligence and asking basic questions, like, "Who has confirmed this thing works?" And it was not just Schultz, Kissinger and Clinton. James Mattis lost his whole investment and many others. Plus Walgreen, a billion dollar company, got duped. Something to consider is social proof: "Well, Clinton invested, it must be good. Or Walgreens is on board? Good enough for me." And so on...

[@allyourcode]

None of the people you named have a medical background that would allow them to ask useful probing questions. Therefore, them being duped is no surprise to me at all. Ditto for Mattis, who even told her that he didn't feel entirely comfortable joining the board precisely due to his lack of medical background. She convinced him that his experience leading large organizations would make him a valuable board member, and he (gullibly?) accepted that explanation. The $150k salary probably didn't hurt either. With all the egg on his face, he is almost certainly regretting the decision to associate himself with her. The fact that all of these people were on the board makes me think that maybe Holmes sought them out exactly because they would NOT be able to question her properly, but would still lend gravitas to the company and impress investors. If that was her thought process, then her fraud goes even deeper than you might otherwise think. Ditto for some of her headline investors: they do not have medical background. I'm talking about DeVos, and Murdoc. These people are successful in completely different industries. Whereas, biotech is very, well, technical. This means that if you want to play that game, you better be savvy. They should have known that they were out of their depth, but you know how these people are: they think that because they succeeded at something that they can go into any field. She probably exploited this aspect of their egos, and had a relatively easy time fleecing them. She did fool Walgreens though. In that case, they did send someone to do some due diligence, and he recommended that they not go with her, but the higher-ups ignored the expert's advice. I'd guess that the people who decided to overrule their own expert(s) were more MBA types, and didn't have medical backgrounds themselves either. Cellgene is an example of the opposite: they are savvy when it comes to biotech. When they investigated Theranos technology, they realized that it did not perform to their standards, so they (correctly) declined to make a deal. It might have also helped that their CEO is a non-white more experienced woman who would be less susceptible to Holmes's big blue eyes.

[@Courage2006]

@@WhiteCollarAdviceOfficial Mattis still made money on the deal. He invested $85,000 -- but he was paid $150,000 a year to attend a few board meetings.

[@Courage2006]

@@allyourcode Agreed. Theranos mainly was just able to get "dumb money". None of the big venture capital firms invested. And her board was made up of old white men who had a crush on her.

[@WhiteCollarAdviceOfficial]

@@Courage2006 I thought he did but accept pay to be on board?

[@pete6705]

Excellent video

[@WhiteCollarAdviceOfficial]

Thank you very much!

[@MG-xy2sd]

You have to be the man in the marriage Justin. Tell your wife who’s in.. whoops! I gotta go, my wife’s coming…🤗 But seriously, thank you brother

[@WhiteCollarAdviceOfficial]

Bud I ain’t in charge!! You know the game. But I’m happy and so fortunate. Thanks for watching!!

[@jamessasson1585]

You covered my main thought. Why not take a deal and cooperate against Balwani? The govt witnesses appear to be credible and on their game! Maybe she knows something we do not know. She has to. Why else would she go to trial? Great stuff here

[@WhiteCollarAdviceOfficial]

I know the odds are against her and all defendants. I agree the government witnesses have been credible. If she is found guilty, there is a chance she could change paths and accept responsibility. But if I had to bet, I would bet she is all in: you will never hear her accept responsibility. That time has come and gone...

[@Courage2006]

Any deal likely came with a prison sentence of at least 10 years. They don't need her testimony to convict Balwani. Plus, she is the face of the fraud. They are not interested in giving her a sweetheart deal to convict an unknown underling.

[@whitewave16]

Hi, is it still possible for Balwani to turn into a "state" witness to earn a lighter sentence or possibly no jail sentence?

[@WhiteCollarAdviceOfficial]

Great question! At this point, he missed his window. The cooperation would have happened leading up to Holmes trial. Further, he would have been one of the governments star witnesses. At this point it is fair to say he is all in on trying to get acquitted.

[@custer2449]

In September, Sunny blew a golden opportunity to beat the band by not cooperating when it fell into his lap. All he needed was a one-man lawyer who didn't have a secretary to tell him to plead out and he'd be spending 2 more years in prison with plenty of his life left. But NOOOOOOO. He had to be a rock star. So now he gets to be making little ones out of big ones in Leavenworth. I read the book written by the greatest witness in history - John Dean - because his lawyer told him to write down each and every thing he could remember and then be self-effacing. He got little time that way and was vicious up on the witness stand because his notes helped him to remember things.

[@seanferguson5460]

I like the shades. They distinguish you from your Prison Professor persona.

[@seanferguson5460]

Conrad Black's time in prison was a source of fascination for Canadians but he made the best of it. You might find his story interesting.

[@jobaby123]

Denial is a beautiful thing….while it lasts.

[@lisamarielund6292]

Thumbs up just for wearing those cool shades!

[@dr.garyhatcher8364]

I figure Homes will do 4 to 8 years.

[@Courage2006]

Given that Bernie Madoff was sentenced to 150 years ... and he pled guilty ... it seems like should get near the full 20 years given the large amount of money involved.

[@WhiteCollarAdviceOfficial]

The loss amounts can be deceiving. What matters most is who the victims are. For example, defrauding Bank of America out of $50 million probably leads to a shorter sentence that defrauding a single investor out of $1 million. That investor may have lost everything and have no path to get in back, unlike Bank of America, or in this case with Ms. Holmes, her wealthy investors, like the Walton Family or Walgreens. Guidelines are just numbers on a chart.

[@beachbum1523]

Was EH even offered a plea bargain? Where she found the bread to pay millions in attorneys' fees is anyone's guess. As for her experience, or expertise that would enable to make money in the future? That seems a bit of a problem, since her only real expertise seems to be in posing. Add to the mix, cheating investors was actually her lesser crime. Her greater crime was in promoting a medical instrument that misdiagnosed sick people. Five years in a camp would be a walk in the park. Correct me if I'm wrong, but aren't there people serving much longer sentences for much lesser crimes?

[@WhiteCollarAdviceOfficial]

All good questions.

[@seanferguson5460]

How much did her lawyers cost? Maybe she offered them a piece of her company.

[@PungiFungi]

She indeed is not going to win. Which is why, in desperation, she had a baby right in time for the trial, delaying it for another two months just so she can have more freedom...and hopefully, use the baby to get a lighter sentence. Know what a consummate pathological liar and manipulator she is, I am sure when the verdict is read, she will shed some crocodile tears and totally break down to get sympathy from the judge.

[@WhiteCollarAdviceOfficial]

There are only two choices, if she loses: She can maintain her innocence, and continue to blame Balwani and others. Or she can seek sympathy, as you suggested. If she loses, I suspect she will choose the former not the latter.

[@louisreuter8197]

I agree with you

[@PungiFungi]

@@WhiteCollarAdviceOfficial she is shameless. Regardless of what she will do, know it will not be genuine but is an act,

[@WhiteCollarAdviceOfficial]

@@PungiFungi In my opinion, her life will improve once she starts accepting responsibility for her own choices.

[@PungiFungi]

@frodo roo I can already predict she would just sit there, defiant to the end, staring at them and not reacting at all. She JUST DO NOT GIVE AN EFF.

[@dr.garyhatcher8364]

I suspect her attorneys are going to end up with a big unpaid bill.

[@WhiteCollarAdviceOfficial]

They are paid in full.

[@appealingalex3825]

Why is her MAX prison time only 20 years but there’s 12 counts against her with a Max of 20 years per count?

[@WhiteCollarAdviceOfficial]

Her max is not 20 years-given the charges it’s hundreds of years. Each count carries a Max.

[@appealingalex3825]

@@WhiteCollarAdviceOfficial thank you for the clarification. i keep hearing ever media outlets stating that she faces a Max of 20 years

[@custer2449]

I don't think E.H. gives a hoot n holler about her baby, which she only had as a useless tool that she tried to use as a way to get out of jail.

[@cctt3083]

Who cares? It is not my business.

[@WhiteCollarAdviceOfficial]

I respect that.