Michael J. Rivera was quoted on the Securities and Exchange Commission (SEC) settlement last week with Theranos and its founder, Elizabeth Holmes. The settlement charged Theranos and Holmes with securities fraud but did not include an admission of guilt by either party. The U.S. Department of Justice (DOJ) reportedly is investigating Holmes, and Michael commented on the reasons why DOJ might be interested in pursuing criminal charges
Michael, a former SEC Enforcement Division lawyer and Chief Investigative Counsel for the Office of the Special Inspector General for the Troubled Asset Relief Program (SGTARP), said, “It is not surprising, as has been reported, that Holmes remains subject to a criminal investigation by the Department of Justice.”
“Based on the allegations in the SEC complaint—and they are just allegations since there was no admission of guilt—this case presents the type of securities violations the Department of Justice might be interested in pursuing. The fact that the alleged fraud was not just financial but also presented a potential a harm to public safety is a further factor that could motivate DOJ to investigate.”
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