As regulators consider banning Theranos CEO Elizabeth Holmes from owning or running any labs for two years, business leaders weighed in on the integrity of the company's claims on CNBC's "Power Lunch."

"Theranos has never been forth coming about its test results," Bill George, Harvard Business School Professor said, "You cannot change medical therapies without adequate testing and validations with multiple centers."

"This is the closest thing the government has to a death penalty," George added.

George called out Holmes' board of directors, for being a "celebrity board," claiming no one knew anything about actual medicine.

"These are warning signs," Jeffrey Sonnenfeld, Yale University Senior Associate Dean for Leadership Studies said. "When the FDA and CMS says, 'this stuff doesn't work,' why is this stuff still out there?"

"This is a company of puffery, pushiness and promotion," he added.

The major question many are wondering is how the company was able to grow without better due diligence on the company's claims.

"My question would be to the investors, where were they and why weren't they doing what we do when we invest in companies?" Les Funtleyder, E Squared Asset Portfolio Management said.

"This should have been pretty easy to spot," he added.

In an interview with CNBC, Theranos spokesperson Brooke Buchanan stressed that the company is actively working to address issues raised by regulators.

"Elizabeth Holmes has not been banned from the industry, she hasn't been banned from Theranos and we continue to work hard to address all the concerns that have been raised by CMS," Buchanan said. "We're in constant communication with the regulators."