[HarryHirsch]

The system works quite nicely - it funnels money from investors to entrepreneurs, just as it always did. It's just that it's running with all safeguards removed. When you see cases of fraud, in general it isn't that that person woke up one day, saying "Today I'm going to commit fraud." It's rather that something didn't work out quite right, and instead of looking back, that person ploughed forward and eventually got caught in a mess that they can't extricate themselves from any longer.

I think that's what happened with Theranos. Why shut the company down saying the underlying science did not work, when you can muddle on for a year longer, cash out, and then shut down and say the science did not work? Except that it's now a year later, and there's an army procurement contract in the works. This is how people turn frauds. The system that overpays CEOs, no matter how unsuccessful, is what's at fault.