Two high-profile criminal cases at opposite ends of the country are putting a much-needed focus on the legalities — or illegalities — of lying. Americans for too long have justified lying as a tolerable offshoot of the brash entrepreneurial spirit that spurred industry and created $2 trillion tech empires like Apple and Microsoft. Fake it till you make it became accepted as a legitimate route to success, as if duping investors was somehow admirable.
There’s no crime in articulating dreams and aspirations, no matter how inflated or unrealistic. It’s entirely a different matter to defraud investors, lenders or tax authorities by lying. In California, entrepreneur Elizabeth Holmes found out the hard way that too much emphasis on faking it can lead to serious prison time. And former President Donald Trump could be in for his own rude awakening if New York prosecutors get their way.
Holmes, 37, founded a company called Theranos when she was only 19 and lured investors based on the promise that her technology could detect a wide array of illnesses with a simple pin-prick of blood instead of the expensive barrage of individual tests that typically are required to make diagnoses. Holmes’ grandiose claims of proven results led big investors to channel billions of dollars her way. Major personalities such as Bill Clinton, Joe Biden and Henry Kissinger endorsed her as an inspirational figure for young women. A California jury found her guilty Monday on four counts of defrauding investors out of more than $1 billion.
