The Third Wave Center for Mindfulness & Bx Therapy

The deeper problem beyond the fact that Elizabeth Holmes is a pathological liar is that her victims succumbed to "Truth Default" theory: Given limited time/access to fact check what people claim, most of us default to believing what we're told is true (e.g., someone tells me they are a Vietnam vet I have neither the time nor resources to check). Most of the time most people are relatively truthful, so Truth Default works as a cognitive heuristic (and liars can get away with lying some of the time). HOWEVER: that doesn't apply to investors, who have a fiduciary responsibility ("due diligence") to fact check claimants before investing. That was not always done in the case of Holmes, in part because they were charmed by her youthful looks, sultry voice, Steve Jobs-wannabe turtlenecks, and her bold promises that Theranos would be The Next Big Thing that investors did not want to miss out on. So while justice is rightly being served against Holmes, the victims of such scams carry some responsibility for letting themselves be fooled. No one held a gun to their head and made them invest. They chose to do so, and because our life outcomes are, in part, self-determined, victims must take some responsibility. No, this is not "blaming the victim." Holmes committed a crime and is getting her just deserts. But neither are her victimized investors naifs. Agreed, in a perfect utopian world no one would lie (or steal, rape, murder, etc.) But that is not the world in which we live. Yes, you should be free to walk around any part of any city anywhere in the world at any time of the night and not get mugged or robbed. But you're an idiot if you do that without taking precautions. Reality matters.