The brilliance of her scheme was that she sought out backers and a board that didn't have any subject matter knowledge.
Hmm. That in itself makes me think that
from the very beginning this whole event was a conspiracy to defraud the investors.
I imagine some of those she approached realized they didn't know anything and consulted with people who did. The remainder became the board members and investors. The one that seems to be a worrisome anomaly is Walgreens, you'd think somebody there would know somebody who would know.
Not necessarily. The current generation of Walgreens are probably far removed from the generation of Walgreens that made the company a success and the current generation probably doesn't know anything beyond how to be rich and spend money. But if anyone had the connections to the pharma industry and
the experts that could tell them if Holmes' scheme had potential, it was them.
All of this reminds me of the Bernie Madoff and the Bernard Ebbers/WorldCom frauds. Some investors did do their due diligence and knew that things didn't add up so they didn't invest. But most investors just saw $$$$ and didn't look any further. Those people should be in jail right along with the Madoff and Ebbers.
Going back to E Holmes, the thing that bothers me is that she claimed to have some NEW technology that would allow her to build machines that would do what she claimed but yet she had NOTHING to back that claim and yet people believed her!