Heck of a deal: The Sacklers
Elizabeth Holmes of Theranos fame reported to jail today for defrauding several VC's, Walmart, and several wealthy investors with false claims about Theranos' capabilities. I thought that was a good outcome and frankly about time. But also today the Sackler family had their freedom from further liability confirmed. All Sacklers did was addict millions of Americans to opiods to make tens and tens and tens of billions leaving the US to deal an of of control addiction problem that will go on for decades or perhaps forever. But in a deal negotiated in part with the Trump DOJ, they will face no further liability.
Elizabeth Holmes problem was that she that while she was rich on paper based on an inflated valuation of her company, she wasn't wealthly enough to tap into the tens of billions needed to buy hoardes of lawyers, former DOJ attorneys, and swing real political heft through donations. Those she hurt were sophisticated and wealthy on at least her level if not more. So she staved off the outcome for years, but couldn't make it go away.
The Sacklers scam, however, fed on the poor and everyday joes which had aleady earned them the billions needed to hire the best attorneys, consultants, and policians to work out their heck of a deal. The deal allows the Sacklers to give a portion of their wealth to the states to help pay for addiction programs, keep the rest, and oh, have no further financial liability. Criminal charges could still be brought, but that's not going to happen either. A system that requires criminals who are caught to pay an admittedly steep fines but keep most of their faudulent gains is not going to provide much deterence.
It's a sad reflection of our system that those with billions have their legal environment that even the merely wealthy cannot tap into. Below that system is another for the merely wealthy and below that are additional legal evironments distinguished largely by the income of its inhabitants.
I almost feel sorry for Elizabeth Holmes because the Sackers deserve to be an jail for the rest of their lives, but she is the one going inside.
Elizabeth Holmes problem was that she that while she was rich on paper based on an inflated valuation of her company, she wasn't wealthly enough to tap into the tens of billions needed to buy hoardes of lawyers, former DOJ attorneys, and swing real political heft through donations. Those she hurt were sophisticated and wealthy on at least her level if not more. So she staved off the outcome for years, but couldn't make it go away.
The Sacklers scam, however, fed on the poor and everyday joes which had aleady earned them the billions needed to hire the best attorneys, consultants, and policians to work out their heck of a deal. The deal allows the Sacklers to give a portion of their wealth to the states to help pay for addiction programs, keep the rest, and oh, have no further financial liability. Criminal charges could still be brought, but that's not going to happen either. A system that requires criminals who are caught to pay an admittedly steep fines but keep most of their faudulent gains is not going to provide much deterence.
It's a sad reflection of our system that those with billions have their legal environment that even the merely wealthy cannot tap into. Below that system is another for the merely wealthy and below that are additional legal evironments distinguished largely by the income of its inhabitants.
I almost feel sorry for Elizabeth Holmes because the Sackers deserve to be an jail for the rest of their lives, but she is the one going inside.