Trump found liable for sexual abuse in civil suit, fined $5 million

May 9, 2023 • 2:31 pm

Hot off the presses: the jury in the civil suit by E. Jean Carroll against Donald Trump found him culpable, meaning that the jury decided that it was more likely than not that Trump raped Carroll (the suit was for both battery and defamation) in a Manhattan department store about 30 years ago.

Trump was ordered to pay $5 million.

This isn’t a criminal case, of course, but now he’s been found by a jury of his peers likely to have committed sexual assault. I’m hoping this will be enough to seriously damage his chances of reelection, but remember that he said he could stand in the middle of Fifth Avenue and shoot somebody, and nothing would happen to him. Let’s hope he was wrong.

Elizabeth Holmes to be locked up this month

April 12, 2023 • 10:00 am

For a while I’ve been writing about the trial of Elizabeth Holmes, who started up the “blood testing” company Theranos and, along with her business and romantic partner Sunny Balwani, was convicted of several counts of wire fraud.

She was sentenced to 11 years in prison but more likely will serve 9½ (federal crimes don’t allow you much time off for good behavior). Reader Simon just sent me a link to this BBC article noting that her request to the judge to remain free while she appeals—a process that could take years—has been rejected. She’ll go into a minimum-security federal prison this month.

Click to read:

Theranos founder Elizabeth Holmes will report to prison at the end of the month after losing a bid to remain free while she appeals against her convictions.

Holmes was sentenced to over 11 years in prison for defrauding investors in her blood testing start-up.

A federal judge on Monday said Holmes failed to prove her appeals process would lead to a reversal of her case.

She is scheduled to go to prison on 27 April.

Holmes had said she would raise “substantial questions” that could warrant a new trial. Her attorneys also argued she should remain free to care for her two young children, including one who was born this year.

But in the Monday ruling, US District Judge Edward Davila said Holmes had not proven her appeal would result in a new trial.

“Contrary to her suggestion that accuracy and reliability were central issues to her convictions, Ms Holmes’s misrepresentations to Theranos investors involved more than just whether Theranos technology worked as promised,” he said.

I still think she’s going to take it on the lam: Holmes is entitled, narcissistic, and previously made one attempt to leave the U.S. while on trial:

Prosecutors, meanwhile, had argued Holmes was a flight risk because she had booked a one-way plane ticket to Mexico during her trial.

Homes’ attorneys said she and her partner Billy Evans were planning to attend a wedding and hoped she would be acquitted.

The ticket purchase was “ill-advised”, Judge Davila wrote in his ruling, though he added it did not constitute an attempt to flee.

“Booking international travel plans for a criminal defendant in anticipation of a complete defence victory is a bold move, and the failure to promptly cancel those plans after a guilty verdict is a perilously careless oversight,” he said.

If this was a trip to a wedding, why did they buy one-way tickets?  Nobody has explained that. I’m thinking that she can’t bear the idea of a decade in jail (she now has two infants) and will try to flee again. But that’s just a guess.

If you’re interested in this case, which is fascinating, read John Carreyrou’s book on the startup and downfall of Theranos, Bad Blood: Secrets and Lies in a Silicon Valley StartupIt’s a page-turner. Carreyrou, at the time writing for the Wall Street Journal, broke the story and it was his reporting that ultimately got Holmes and Balwani indicted, tried, and convicted. A great read, you’ll see how charismatic Holmes was, managing to convince a gaggle of rich and famous people to give her startup money without having the device that was supposed to diagnose many diseases from a single drop of blood.

Another mass shooting in the U.S.

April 10, 2023 • 10:15 am

This seems to happen about twice a week, and the last incident was this morning in Louisville, Kentucky.

A mass shooting at a bank in downtown Louisville, Kentucky, on Monday morning left five people dead inside the building and sent six people to a local hospital, police said.

The shooter is dead, police added.

The Louisville Metro Police said they responded to “an active aggressor” on the 300 block of East Main Street in downtown, adding “there are multiple casualties.” FBI Louisville described the incident as a shooting, and other officials urged residents to stay away from the area.

One of those shot was a police officer, according to preliminary information from a source with direct knowledge of the scene on the ground. The source said there were shots exchanged between the shooter and police during the incident.

I’ll be overseas as the details trickle in.

I see this as the inevitable result of lax gun laws, but of course others disagree. One friend tells me that the best solution to the problem is better mental health care. That seems risible to me because many shooters probably wouldn’t be diagnosed as mentally ill, or have no history of the condition that would keep them from getting a gun. Of course, if you define any mass shooter as mentally ill, the claim becomes a tautology.

The result of the “we can’t tighten gun laws” mentality is that this will keep up forever, with people wringing their hands and doing nothing but sending out “thoughts and prayers.”

NY grand jury indicts Trump!

March 30, 2023 • 4:49 pm

Well, it’s happened: our first President to get a criminal indictment.  The headline from the NYT (click to read; there  are live updates):

A Manhattan grand jury voted to indict Donald J. Trump on Thursday for his role in paying hush money to a porn star, according to five people with knowledge of the matter, a historic development that will shake up the 2024 presidential race and forever mark him as the nation’s first former president to face criminal charges.

An indictment will likely be announced in the coming days. By then, prosecutors working for the district attorney, Alvin L. Bragg, will have asked Mr. Trump to surrender and to face arraignment on charges that remain unknown for now.

Mr. Trump has for decades avoided criminal charges despite persistent scrutiny and repeated investigations, creating an aura of legal invincibility that the vote to indict now threatens to puncture.

While the charges remain a mystery, Mr. Trump is the first former or current president to be indicted. Nearly two weeks ago, he inaccurately predicted his own arrest. It is likely that the district attorney’s office will now seek to arrange his surrender.

It is unclear precisely when the grand jury vote criminally charging the former president was taken. Prosecutors walked into the office of the clerk in the Manhattan Criminal Courthouse, where the paperwork for an indictment was filed only minutes before the office closed for the day. For weeks, the atmosphere outside the district attorney’s office had resembled a circus. But the fervor had cooled in recent days, and the environs of the office were emptier on Thursday than they had been in weeks.

This wasn’t supposed to happen this week, as the grand jury was taking a break to consider other stuff. But now Trump has to turn himself in and get photographed and fingerprinted.  And this cannot help his Presidential aspirations. Next: the trial!

Salman Rushdie attacked, stabbed while lecturing in New York

August 12, 2022 • 11:09 am

This is what we were all afraid of. It’s been 33 years since the fatwa was issued against Salman Rushdie for writing The Satanic Verses, but the rancor remains.  He’s had a bodyguard, I think, but somehow the protection was bypassed. An AP report gives sketchy details about his attack in New York. It sounds serious, and the other photos at the AP are not heartening.

Some of the article:

Salman Rushdie, the author whose writing led to death threats from Iran in the 1980s, was attacked Friday as he was about to give a lecture in western New York.

An Associated Press reporter witnessed a man storm the stage at the Chautauqua Institution and begin punching or stabbing Rushdie as he was being introduced. The 75-year-old author was pushed or fell to the floor, and the man was restrained.

Rushdie was quickly surrounded by a small group of people who held up his legs, presumably to send more blood to his chest.

His condition was not immediately known.

Hundreds of people in the audience gasped at the sight of the attack and were then evacuated.

Rushdie’s book “The Satanic Verses” has been banned in Iran since 1988, as many Muslims consider it to be blasphemous. A year later, Iran’s late leader Ayatollah Ruhollah Khomeini issued a fatwa, or edict, calling for Rushdie’s death.

A bounty of over $3 million has also been offered for anyone who kills Rushdie.

Iran’s government has long since distanced itself from Khomeini’s decree, but anti-Rushdie sentiment has lingered. In 2012, a semi-official Iranian religious foundation raised the bounty for Rushdie from $2.8 million to $3.3 million.

Rushdie dismissed that threat at the time, saying there was “no evidence” of people being interested in the reward.

That year, Rushdie published a memoir, “Joseph Anton,” about the fatwa. The title came from the pseudonym Rushdie had used while in hiding.

Here’s a photo. We don’t know who the perpetrator was, so stay tuned. In the meantime, I’m hoping hard that he’ll survive.

(From AP): Author Salman Rushdie is tended to after he was attacked during a lecture, Friday, Aug. 12, 2022, at the Chautauqua Institution in Chautauqua, N.Y., about 75 miles (120 km) south of Buffalo. (AP Photo/Joshua Goodman)

Sunny Balwani convicted in Theranos scandal

July 8, 2022 • 12:45 pm

I added this report to the Nooz this morning, but wanted to say a few words about the grand finale of L’Affaire Theranos. It’s unusual for techies and white-collar entrepreneurs like these two to be charged, must less convicted, and I’ve been fascinated by the trial after reading the book mentioned below.

The facts are detailed in a Wikipedia article “Theranos“, but if you want an investigative reporter’s account of what went on, read the fabulous book Bad Blood: Secrets and Lies in a Silicon Valley Startup (2018) by John Carreyrou, whose reporting for the Wall Street Journal blew the Theranos fraud wide open. It’s a page-turner, and you’ll be amazed how Elizabeth Holmes (and Ramesh “Sunny” Balwani) conned millions of dollars out of gullible donors by convincing them they had a machine that could analyze dozens of conditions from just a capillary tube of blood. People gave millions without asking for evidence, and they lost it all.

Holmes, of course, was indicted and convicted of four of the eleven charges against her, including three counts of wire fraud and one count of conspiracy to commit wire fraud (on the other charges she was either found not guilty or there was no verdict). She’s been free on half a million dollars bail since her January conviction, and will be sentenced in September. She faces 20 years in prison and a $250,000 fine for each count, though she’ll undoubtedly get a much lighter sentence than that.  She testified on her own behalf during the trial, and part of her defense involved the claim that she was psychologically abused by Balwani. I don’t think that claim helped her much.

Balwani, her partner in fraud—and for a time in romance—was convicted yesterday on all 12 counts of fraud (10 counts of wire fraud and two counts of conspiracy to commit wire fraud) and faces the same sentences per charge as did Holmes. The sentences for each perp will probably run concurrently, and they’ll probably get pretty much the same sentence. Balwani will be sentenced this coming November; in the meantime he’s free on a $750,000 bond. Balwani didn’t testify in his trial, and only two witnesses testified in his defense.

Since Carreyrou began reporting the scandal in the Wall Street Journal, that paper has had the best coverage of the trials, though he’s no longer with the paper. Here’s yesterday’s report of the Balwani verdict (click to read):

A few bits that were new to me:

Mr. Balwani’s lawyers argued he wasn’t in charge at Theranos, and the responsibility for the company rested with Ms. Holmes. He used investor money as promised, to build the company, they said, and invested his own money to help the startup succeed. Mr. Balwani’s verdict shows how the government, in its second time prosecuting the case against the Theranos executives, appeared to have buttoned up its arguments following Ms. Holmes’s trial, which had a more mixed result.

Most notably, the jury in Mr. Balwani’s case found him guilty on all counts related to defrauding patients—counts for which Ms. Holmes wasn’t convicted, an outcome that disappointed patients affected by Theranos’s faulty technology. A jury of seven women and five men deliberated for about 32 hours before reaching the verdict.

. . .Mr. Balwani’s conviction may affect the sentencing given to Ms. Holmes. The judge likely will want to give similar sentences to both because of their near-identical crimes, said Andrey Spektor, a defense attorney and former federal prosecutor in the Eastern District of New York. Any leniency he shows Ms. Holmes—who is 38 years old and had a baby last year—he will have to also show Mr. Balwani, or risk looking unfair, Mr. Spektor said.

“If he gives her a big break he is going to think, how will it look if he sentences Balwani differently,” said Mr. Spektor.

Balwani even incriminated himself:

Crucially, he was responsible for the lab when in 2015 a federal regulatory inspection uncovered serious deficiencies that would eventually lead to Theranos closing its blood-testing facilities. Adam Rosendorff, another former lab director, testified that Mr. Balwani controlled which employees had access to the lab, managed the laboratory resources, and hired and fired lab employees. He was more involved in the operations of the lab than Ms. Holmes, Dr. Rosendorff said.

Prosecutors showed a text message Mr. Balwani sent Ms. Holmes in July 2015: “I am responsible for everything at Theranos. All have been my decisions too.”

The article details the nature of the fraud, involving both deceived investors and patients, and you can get the details in the WSJ or on Wikipedia. Here’s how much the pair were worth at their peak (now they have a net worth of zero):

At its peak, Theranos was valued at more than $9 billion, 10th-largest at the time among venture-capital-backed startups. Mr. Balwani’s stake was worth $500 million for a time, and Ms. Holmes’s was worth $4.5 billion. They never sold their shares.

Their on-paper wealth was propelled by claims that their technology could cheaply and quickly run more than 200 health tests using a proprietary device that required just a finger prick of blood. In a partnership, Theranos offered the tests to patients at Walgreens pharmacies.

The trials have shown a different reality. The company managed to use its proprietary finger-prick blood-testing device for just 12 types of patient tests. Those results were unreliable. At its lab, Theranos secretly ran another 27 blood tests on commercial devices from other companies that it altered to work with tiny blood samples.

In the end, I don’t think that Holmes and Balwani, just because they’re white-collar criminals and tech entrepreneurs, should get a light sentence. Not only did they in effect steal millions of dollars, knowingly bilking people out of immense sums of money, but a reasonably long sentence may deter others contemplating similar frauds. (My fellow determinist Gregg Caruso, though, thinks that “deterrence” should not be a motive in criminal justice” because it uses people as a means rather than an end.)

Now, dear readers, what do you think are appropriate sentences for Holmes and Balwani?

****************

Holmes in 2014:

Balwani:

Read this book (click image to go to Amazon link):

How useful are guns in civilian hands for defending against “active shooters”? Not very much.

June 23, 2022 • 9:15 am

The common defense of gun ownership by private individuals is that “what stops armed bad guys is armed good guys”. (This is a quote from Ted Cruz). Such is the defense for much private gun ownership, and also now for the ridiculous movement to arm teachers to deter or kill school shooters. Of course if you include police and security guards as “armed good guys,” the mantra has more credibility, but the mantra is often used to justify gun ownership by private citizens.

A new article in the New York Times (click on headline below) tests whether the Cruz Mantra is a verity, at least as far as “active shootings” are concerned.

It turns out that the answer is that the “conventional wisdom” is wrong for active shooters. It’s also wrong for home invasions in general, as private gun ownership involves accidental deaths, or suicides, far more often than it stops (by shooting) individual altercations between innocent citizens and “bad guys”. But today we’re talking about “active shooters”.

What is an active shooter? The paper, drawing from data collected by the Advanced Law Enforcement Rapid Response Training Center at Texas State, collaborating with the FBI, defines active shooter attacks this way:

[Active shooter attacks are those] in which one or more shooters killed or attempted to kill multiple unrelated people in a populated place.

And they’re increasing—currently up to more than one a week. Here’s a figure from the NYT (all figures from the article) showing the number of active shooter attacks per year from 2011 to 2021. (According to the Washington Post, we’ve had 250 already in 2022; although their figures are for “mass shootings”, these seem the same as “active shootings”).

According to the data, there have been 433 active shooter attacks in the US from 2000-2021. What the figure below shows is how they ended, divided into two main groups: attacks that ended before police arrived (249) and those that ended after police arrived (184).Each of the two main divisions is further subdivided.

Click to enlarge:

 

Here are the lessons (bold headings and indented stuff are taken from the paper):

a.) Police officers shoot or physically subdue the shooter in less than a third of attacks. ”

Most events end before the police arrive, but police officers are usually the ones to end an attack if they get to the scene while it is ongoing.

Hunter Martaindale, director of research at the ALERRT Center, said the group has used the data to train law enforcement that “When you show up and this is going on, you are going to be the one to solve this problem.”

The average response time for police to get to the scene is very fast: three minutes. But this doesn’t mean that the cops themselves nearly always end the attack. Very often the shootings end when the attacker simply leaves the scene (not because he’s being shot at, kills himself, surrenders, or is subdued without guns.  These add up to 65% of total active shootings.

b.) The rate of suicide is extraordinarily high in these events. 110 of the 433 events ended with the attacker killing himself (there are a few women who carry out these attacks, but nearly all are by men). This is most likely either via “suicide by cop” or the result of a realization by the attacker that he’s going to be either caught or shot.

c.) When attacks are stopped by bystanders rather than security guards, cops, or off-duty cops, they are ended more often by physical force than by shootings.  Of 54 cases of attacks stopped by citizen bystanders, 42 of them—78%—were stopped by subduing rather than shooting the perp. Further, when attacks are stopped by shooting before police arrived, about half of them (10/22, or 45%) are stopped by security guards or off-duty cops than by citizens.

d.) When attacks are ended by the shooting of the attacker, the vast majority of time it’s by a police officer, on or off duty, or a security guard.  The number of attacks shopped by shooting the perp were 120. Of these, 12, or 10%, were stopped by citizen shooters. But 12 is only 2.7% of all active shootings that were ended.

Conclusion (from me): When mass shootings are stopped, only a very small percentage are stopped via shooting by armed citizens who are not cops or security guards. And attacks stopped by private citizens were most likely to be stopped by subduing him than by shooting him (42/54, or 78%; this drops to 66% if you include “bystander” cops or security guards.

But taking all the ways that active shootings could end, including the shooter leaving the scene (most are captured later), suicide, or subduing the shooter, only 2.8% of them are stopped by private citizens shooting perps (12/433). Ergo, Ted Cruz is wrong: in these mass shootings, at least, it’s not the “armed good guys” (implying private citizens) but other forces, tactics, and people (including cops) who stop the shootings. 

I have no objection to cops or security guards carrying guns; I do have objections to private citizens carrying or owning guns. In most cases these lead to the death of innocent people more often than to the extirpation of “bad guys.”

I’ll end with a couple of quotes from the article:

“It’s direct, indisputable, empirical evidence that this kind of common claim that ‘the only thing that stops a bad guy with the gun is a good guy with the gun’ is wrong,” said Adam Lankford, a professor at the University of Alabama, who has studied mass shootings for more than a decade. “It’s demonstrably false, because often they are stopping themselves.”

. . . But armed bystanders shooting attackers was not common in the data — 22 cases out of 433. In 10 of those, the “good guy” was a security guard or an off-duty police officer.

“The actual data show that some of these kind of heroic, Hollywood moments of armed citizens taking out active shooters are just extraordinarily rare,” Mr. Lankford said.

In fact, having more than one armed person at the scene who is not a member of law enforcement can create confusion and carry dire risks. An armed bystander who shot and killed an attacker in 2021 in Arvada, Colo., was himself shot and killed by the police, who mistook him for the gunman.

Now remember that this post (and the article) is about “active shooters,” which seem roughly equivalent to “mass shooters”. We’re not talking about home invasions or private confrontations between people. And at least in this case, almost no benefit is derived from arming citizens. When you compare that to the down side of arming citizens, the Ted Cruz defense falls to pieces.