The fact that Madoff's intent was criminal from the outset and that Holmes' probably wasn't is irrelevant. The point is that it became criminal. And that's why she's in the firing line today.
Going out on a limb here, I would say when found out their machine didn't provide accurate results. Yet waited until threatened to be closed for two years before voiding results. This is not Uber for Dogs, and puppy doesn't get to the park to play with its friends, but potentially life or death situations. We are not talking just a 0.01% error rate, this is stuff like like 20-40% error rates in some tests.
> Was it when Hwnry Kissinger joined the board of directors?
Well, some would say it would be a warning sign, for sure ;-)
Read this article.