[dmix]

Is there even a criminal investigation here? I thought this was over a lawsuit.

This guy got 6.5yrs in prison for defrauding investors by making it appear the company had value it actually didn't: https://www.law360.com/articles/892055/broker-gets-6-5-years...

It's difficult to find other examples as most investor fraud is based on directly milking investors with obviously false claims.

For example, this SF startup founder lied about being close to acquisition and never handed over shares in the company in return for money: http://www.mercurynews.com/2014/02/20/san-francisco-startup-... that's more directly fraudulent.

The Theranos thing might be more difficult to prove as it's possible the technology was somewhat legitimate but clearly if sharing the fake test data was a critical part of them investing, then it might be much the same.

The early investors who bought into just the idea may not have any claim. But any later investors who invested based solely on claims made with falsified test data may have a claim against the company/her.

[ceejayoz]

> Is there even a criminal investigation here?

Seems like there sure should be.

[nojvek]

Looking at what happen to the Abhishekh Guttani case in Santa Clara court I believe SV courts are a joke in giving any serious punishments.

I am willing to bet she wouldn't be charged jail time for more than six months. She would have enough contacts and money to may be totally avoid it.