According to The Associated Press, the Journals investigation marked the beginning of the end of Theranos. /Parent 13 0 R /S /L /S /LBody /Type /Catalog endobj endobj /Resources 412 0 R 353 0 obj /Lang (EN-US) /K 10 endobj endobj Investors have poured more than $400 million into Theranos, valuing it at $9 billion and her majority stake at more than half that. /Lang (EN-US) >> >> /Type /Page << /K 14 /Subscript /Span >> << 299 0 obj /K 16 /Lang (EN-US) >> 216 0 obj << /Pg 243 0 R 99 0 obj << /K 2 /P 370 0 R 118 0 obj >> And although entrepreneurship is very much about turning an imagined future state into reality, the vast and unchecked gap between Theranos vision and the technological incompetence of its operations was breathtaking. 375 0 obj /K [349 0 R 350 0 R 351 0 R 352 0 R 353 0 R] 227 0 R null null null 228 0 R null null] Follow Mike Snider on Twitter:@mikesnider. 319 0 obj >> 12 0 obj endobj >> << /BBox [79.9440002441 274.9559936523 453.9599914551 398.8439941406] The indictment alleges that the defendants used a combination of direct communications, marketing materials, statements to the media, financial statements, models, and other information to defraud potential investors. 341 0 obj endobj /Pg 249 0 R /Lang (EN-US) Cheungs testimony continues today. 174 0 obj endobj /P 44 0 R /S /LBody >> 296 0 R 297 0 R 298 0 R 299 0 R 300 0 R 301 0 R 302 0 R 303 0 R] << /Pg 257 0 R /Pg 251 0 R endobj >> /MediaBox [0 0 612 792] 30 0 obj /P 51 0 R >> /Pg 235 0 R >> /K 8 endobj 170 0 obj 2018-03-14T09:02:10-07:00 << Further, defendants allegedly represented to investors that Theranos had a profitable and revenue-generating business relationship with the United States Department of Defense and that Theranoss technology had deployed to the battlefield when, in truth, Theranos had limited revenue from military contracts and its technology was not deployed in the battlefield. /P 8 0 R /Annots [] She is photographed in 2014 while speaking about the company's vision at their headquarters in Palo Alto . /S /LI /Lang (EN-US) /Contents [465 0 R 466 0 R 467 0 R] She now has "two very young children hertoddler and an infant," according to a recent court filing. /S /LBody 23 0 obj 294 0 obj /Pg 235 0 R /K 162 0 R << 348 0 obj endobj endobj 393 0 obj 265 0 obj /Type /MCR /K 41 All rights reserved. >> endobj 378 0 obj << /K 14 /Tabs /S Holmes will head to trial starting Aug. 4, and Balwani will be tried afterthe conclusion of Holmes case, Bloomberg reported. /K 30 >> /K 14 308 0 obj /P 8 0 R After Cheung went to the federal government, Theranos hired a private detective to spy on her, according to court documents released last week. The company boasted the ability to get results from very small amounts of blood, something that would be revolutionary in medical diagnostics. << 397 0 obj 114 0 obj >> /S /P endobj /P 48 0 R /K [22 386 0 R] /S /LBody 2018-03-14T08:41:27-07:00 Theranos gambit may have extended over time precisely because all four biases played a role in the making of a dream that was never fully tested against the constraints of reality. << /P 55 0 R endobj /P 354 0 R /K 166 0 R << >> /MediaBox [0 0 612 792] ] John Carreyrou writes the story of a gifted 19-year-old who founded a health . Former Theranos board member and former Secretary of Defense James "Mad Dog" Mattis testified last week in the criminal trial of former Theranos CEO Elizabeth Holmes. 279 0 obj 15 [null null 192 0 R null null null 193 0 R null null null endstream 76 0 obj /Resources 408 0 R /P 48 0 R Entrepreneurship lives in the realm of threading between the present and the future. /S /LI Several months later, with encouragement from her professor, Channing Robertson, Holmes quit Stanford. 94 0 obj >> /Lang (EN-US) endobj /S /LI /Lang (EN-US) /P 381 0 R << endobj /P 293 0 R << << >> Ad Choices, Theranos founder Elizabeth Holmes on trial as jury selection begins, Theranos downfall due to elaborate $4M conspiracy, investor says. 144 0 obj 75 0 obj /K 14 >> 190 0 obj /Pg 237 0 R 159 0 obj Subscribe to our channelhttp. /K 10 /Lang (EN-US) /Parent 14 0 R /Pg 235 0 R << U.S. Attorneys Office /P 48 0 R /P 8 0 R The Securities and Exchange Commission today charged Silicon Valley-based private company Theranos Inc., its founder and CEO Elizabeth Holmes, and its former President Ramesh "Sunny" Balwani with raising more than $700 million from investors through an elaborate, years-long fraud in which they exaggerated or made false statements about the company's technology, business, and financial . endobj /S /LI /Type /MCR /StructParents 18 /P 51 0 R << << /P 328 0 R endobj /K 34 /P 300 0 R >> 199 0 obj << endobj /Pg 235 0 R /K [26 383 0 R] endobj 313 0 obj /P 55 0 R endobj /P 42 0 R Tim De Chant << /P 262 0 R 1343. /Lang (EN-US) << >> endobj /Resources 500 0 R % In a reply, Holmes said she was projecting $100 million for 2015, nearly ten times less than what she told investors at one point. << << << 20 0 obj /K 10 /P 50 0 R /K 13 /Count 5 << 156 0 obj /S /P /P 289 0 R /K 2 /K 6 /P 55 0 R /S /LI /S /LI /K 201 0 R endobj /P 50 0 R endobj 140 0 obj >> << endobj /P 63 0 R such statements undermine confidence . 107 0 obj /Type /Page << The conduct alleged in these charges erodes public trust in the safety and effectiveness of medical products, including diagnostics. What's everyone talking about? /Parent 14 0 R >> /S /P << /S /P Leaving Little Space for Inspiration. 302 0 obj 25 0 R 26 0 R 27 0 R 28 0 R 29 0 R 30 0 R 31 0 R 32 0 R 33 0 R 34 0 R 4 [null null 131 0 R null null null 132 0 R null null null At the time, Holmes, 39,was a mother of a 1-year-old son and pregnant with another child. /P 351 0 R 178 0 obj endobj >> /CropBox [0 0 612 792] /K 28 /K 14 The request for Holmes toremain free pending an appeal, filed Feb. 23 with the U.S. District Court for the Northern District of California, did not say when Holmes had her second baby. /S /P >> This office, along with our other law enforcement partners in the Bay Area, will vigorously investigate and prosecute those who do not play by the rules that make Silicon Valley work. 253 0 obj endobj After all, one of Theranos top achievements was the very idea Holmes herself had developed an idea she never put through the rigor of scientific testing before defining its contours. /P 264 0 R The first week of Theranos founder Elizabeth Holmes' fraud trial is now complete. << /Lang (EN-US) /P 8 0 R >> 75 0 R 76 0 R 77 0 R 78 0 R 79 0 R 80 0 R 81 0 R 82 0 R 83 0 R 84 0 R 362 0 obj 165 0 obj << /Count 5 endobj /P 260 0 R >> GET FOX BUSINESS ON THE GO BY CLICKING HERE. /Pg 245 0 R 329 0 obj /K 219 0 R The indictment further alleges that Holmes and Balwani knew that many of their representations about the analyzer were false. . /S /LBody endobj >> endobj endobj /PageLayout /OneColumn endobj >> << endobj << /Pg 243 0 R 34 0 obj /Pg 248 0 R << /Annots [] >> /K 18 endobj 241 0 obj << SAN JOSE - A federal grand jury has indicted Elizabeth A. Holmes and Ramesh Sunny Balwani, announced Acting United States Attorney Alex G. Tse, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett; Food and Drug Administration (FDA) Commissioner Scott Gottlieb; and U.S. /P 306 0 R endobj As company founder Elizabeth Holmes is sentenced to over eleven years in prison and TV adaptation The Dropout earns star Amanda Seyfried an Emmy, we reveal everything you need to know about the Theranos controversy. 63 0 obj /P 310 0 R << /K 38 /S /LBody /SourceModified (D:20180314151216) /K 210 0 R >> /MCID 2 >> /StructParents 12 /K 0 /K 17 << /Kids [250 0 R 251 0 R 252 0 R 253 0 R 254 0 R 255 0 R 256 0 R 257 0 R 258 0 R] /P 40 0 R /K 167 0 R /S /LBody << HUMo@W~{-E$U i~ q&1KNwf{f(=7E GGY,kf~ _i^04V0[398o%dg2vWvuD`aiqeso"! endobj 158 0 obj Legal Statement. According to the March 2018 statement from the SEC, Theranos, . The startup was founded in Feb. 2014, was headquartered in Palo Alto, Calif., according to Bloomberg. endobj << /Resources 436 0 R 123 0 obj /Pg 258 0 R >> endobj /S /LI 288 0 obj endobj /K 261 0 R << 161 0 obj /P 355 0 R In 2013, things had "started to get a bit tight," Yam said. /P 8 0 R /Contents [453 0 R 454 0 R 455 0 R] 379 0 obj endobj >> /S /P >> /Parent 11 0 R 78 0 obj 352 0 obj >> /S /LBody /Rotate 0 /Resources 488 0 R 188 0 R null null null 189 0 R null null null 190 0 R null << But constantly focusing on a desired future state may have the effect of giving extra highlight to the positives of a distant vision at the expense of the operational challenges that are taking place in the here and now. endobj endobj 351 0 obj /P 380 0 R >> Research on the dark sides of creativity suggests that not only are people more likely to act dishonestly when they are in a creative state, but that cheating, in itself, can actually make people more creative. << << 2023 FOX News Network, LLC. 160 0 obj /K 18 1. /Pg 235 0 R 90 0 obj 137 0 obj endobj 333 0 obj endobj 45 0 obj Theranos founder Elizabeth Holmes arrives at San Jose court over alleged fraud. /S /LBody endobj << << /K 122 0 R /Count 9 /Lang (EN-US) /K 24 endobj /Annots [] /MediaBox [0 0 612 792] /P 281 0 R Theranos was a blood testing company based in Palo Alto and Newark, Calif. Holmes used a combination of direct communications, marketing materials, statements to the media, financial statements . << The Indictment Alleges That Investors Were Defrauded. << 7 [null null 147 0 R null null null 148 0 R null null null /S /LI endobj Investors who put a total of $632 million into Theranos in its latest funding round from 2014 to 2015 included " Rupert Murdoch and family-controlled Cox Enterprises Inc., -- [Cox family holdings . << /S /LI endobj Mutual Fund and . Theranos founder Elizabeth Holmes, now a mother of two,is asking to delay her11-year sentence for felony fraud so she can be at home with her two young children while she appeals theconviction. /Type /Page << /K [105 0 R 106 0 R 107 0 R 108 0 R 109 0 R] 238 0 obj /MediaBox [0 0 612 792] << 22 0 obj >> /Lang (DE-DE) null null 191 0 R null null null 192 0 R null null] /Pg 235 0 R >> 58 0 obj 82 0 obj /S /P /Type /MCR 376 0 obj /K 18 /Pg 258 0 R /Pg 235 0 R To conduct any kind of research for any company in any industry. /Resources 496 0 R /Type /Page << /P 381 0 R endobj /S /LBody 244 0 obj /Lang (EN-US) /Contents [445 0 R 446 0 R 447 0 R] For example, allegedly, Holmes and Balwani knew that the analyzer, in truth, had accuracy and reliability problems, performed a limited number of tests, was slower than some competing devices, and, in some respects, could not compete with existing, more conventional machines. /Resources 468 0 R Elizabeth Holmes donated >> << /P 55 0 R /P 171 0 R Researchshows that unethical conduct is more likely when people are tempted with the opportunity to cheat on behalf of a good cause, and that cheaters may feel more at ease with their own behavior if they cheat on behalf of the common good. /Pg 235 0 R /P 280 0 R /S /LI Powered and implemented byFactSet Digital Solutions. /K 175 0 R /S /LBody << /K 214 0 R An official website of the United States government. /S /P /K 137 0 R endobj /S /LI /K 150 0 R 154 0 R null null null 155 0 R null null null 156 0 R null /K 9 /Contents [485 0 R 486 0 R 487 0 R] << 163 0 obj endobj /P 8 0 R Holmes, who founded Theranos in 2003 at age 19 with the lofty mission of revolutionizing blood testing, has pleaded not guilty. 305 0 obj /Pg 240 0 R /Rotate 0 endobj endobj << /Contents [429 0 R 430 0 R 431 0 R] << Holmes rocketed to Silicon Valley stardom nearly a decade ago when she started speaking publicly about Theranos's vision a small . endobj /CropBox [0 0 612 792] In November 2022, Holmes was sentenced to 135 months in prison for defrauding investors in the failed Silicon Valley startup that sought to revolutionize blood testing. /S /LBody << /P 50 0 R endobj >> 18 [null null 209 0 R null null null 210 0 R null null null They are also attracted by the fact that behind the innovation and entrepreneurship are rules of law that require honesty, fair play, and transparency. 254 0 obj Anyone who engages in deceptive practices should know they will not go undetected and will be held accountable. /K 119 0 R >> << >> Nov 16, 2021, 6:17 PM PST. It became evident that audited financial statements hadn't been prepared since 2009. 194 0 R null null null 195 0 R null null null 196 0 R null 354 0 obj << /K 212 0 R << The Seattle-based coffee giant originated in 1971 and has since become ubiquitous around the world. endobj 285 0 obj Yam said that Theranos lost $16.2 million in 2010, $27.2 million in 2011, $57 million in 2012, and $92 million in 2013. It involves a dream, a mission, a plan, a vision and quite possibly monumental corruption. >> 304 0 obj endobj /S /LI 25 0 obj 196 0 obj 332 0 obj /P 365 0 R All rights reserved. 1 0 obj 234 0 obj /K 19 << /K 10 That journey ended not, as it could have been, when the promises of its vision delivered their potential, but it ended when somebody, finally, brought reality into the picture. Since this form of unethical behavior may lack the pangs of guilt and/or shame that generally provide people with a certain amount of self-restraint and hesitation, it can be difficult for others to suspect any bad conduct. endobj The company spent over $150,000 surveilling her and another whistleblower. Join the Ars Orbital Transmission mailing list to get weekly updates delivered to your inbox. endobj >> endobj /Rotate 0 314 0 obj /S /LBody /K 30 /P 303 0 R >> /MediaBox [0 0 612 792] /Pg 257 0 R << /K 22 /Pg 237 0 R 355 0 obj /K 120 0 R /S /LI endobj 171 0 obj /P 393 0 R endobj /Type /Page endobj The company claimed that it had devised . 129 0 obj << /K 26 /K 6 /P 50 0 R << endobj /CropBox [0 0 612 792] /Lang (EN-US) << /Pg 235 0 R /Parent 5 0 R << endobj /S /P 239 0 obj << /P 48 0 R /Rotate 0 346 0 obj /S /LI /P 48 0 R /Lang (EN-US) /P 3 0 R /P 8 0 R /P 296 0 R << /CreationDate (D:20180314084127-07'00') /Lang (EN-US) >> 172 0 obj /Type /Page /S /LBody /K 21 /K 18 >> endobj /Type /Pages /S /LBody Its unclear whether Theranos rise and fall will turn out to be a dazzling mirage of would-be business greatness, one of the most infamous stories of corporate fraud in the 21st century, or, an ironic reminder of the inescapable weakness of biased decision-making. << endobj >> << The defendants also delivered to doctors and patients blood test results from which critical results were improperly removed. Zippia's Best Places to Work lists provide unbiased, data-based evaluations of companies. /P 8 0 R /S /LBody /K 33 << << /P 380 0 R << 55 0 obj >> 180 0 R null null null 181 0 R null null null 182 0 R null 184 0 obj /K 115 0 R /K [273 0 R 274 0 R] /P 8 0 R "Sunny Balwani did not start Theranos," said the lawyer . 165 0 R null null null 166 0 R null null null null 167 0 R 9 [null null 157 0 R null null null 158 0 R null null null /Lang (EN-US) << /P 51 0 R The collaborative investigative work on this case conducted by Postal Inspectors, our law enforcement partners, and the United States Attorneys Office illustrates our efforts to protect both consumers and investors., The Indictment Alleges That Doctors And Patients Were Defrauded. 367 0 obj She pitched its technology as a cheaper way to run dozens of blood tests with just a prick of a finger and a few droplets of blood. /K 225 0 R endobj /Pg 245 0 R /Lang (EN-US) /Pg 235 0 R 121 0 obj << /S /LBody << >> /S /LBody /Pg 252 0 R /Annots [] /ModDate (D:20180314090210-07'00') 340 0 obj emblazoned in block capitals in the Theranos lobby, was 'Do or do not. /K 4 endobj /Pg 235 0 R /P 55 0 R /S /LBody /P 50 0 R The Securities and Exchange Commission also brought civil fraud charges against Holmes and Balwani. /K 174 0 R While we have made attempts to ensure that the information displayed are correct, Zippia is not responsible for any errors or omissions or for the results obtained from the use of this information. /Lang (EN-US) /Parent 12 0 R /Lang (EN-US) /Contents [409 0 R 410 0 R 411 0 R] /K [18 385 0 R] /K 275 0 R /Resources 456 0 R /Type /Pages endobj >> /Type /MCR endobj /S /P /Parent 12 0 R /P 48 0 R Elizabeth Holmes and her ill-fated blood-testing start up, Theranos, are the subjects of the latest exceptional read. The Company's clinical laboratory offers comprehensive laboratory tests. endobj 5 0 obj /Lang (EN-US) 74 0 obj /Lang (EN-US) /P 8 0 R /K 18 /K 159 0 R /Lang (EN-US) endobj /S /LI /Lang (EN-US) It included jury selection, opening statements, released text messages, and an unexpected . /K 6 The far-reaching nature of Theranos promises pulled stakeholders attention towards the end state rather than the more practical and operational nature of the challenges that needed consideration in order to successfully implement the purported technological approach. Market data provided byFactset. /S /LBody /S /LI >> The two pleaded not guilty to wire fraud and conspiracy to commit wire fraud. /S /LI 384 0 obj /P 51 0 R /O /Layout /CropBox [0 0 612 792] The company grew to be worth more than $9 billion, employing more than800 employees attracting investors such asLarry Ellison, founder of Oracle; Rupert Murdoch, billionaire media mogul; and the Walton family, who founded Walmart. 81 0 obj endobj /P 377 0 R 350 0 obj /S /LBody endobj >> endobj /K 130 0 R /Pg 250 0 R endobj /Tabs /S /Pg 254 0 R << endobj << /Lang (EN-US) /Lang << /Pg 244 0 R endobj Instead of sticking with them, Holmes and her team could have put an equal amount of energy and ingenuity into developing a safe user-friendly technique to draw the adequate amount of blood necessary. /Contents [457 0 R 458 0 R 459 0 R] /S /P /K [26 388 0 R] << /S /L /K 189 0 R 15 0 obj 315 0 obj endobj Northern District of California, FOR IMMEDIATE RELEASEFriday,June 15, 2018, Elizabeth Holmes and Ramesh Sunny Balwani Are Alleged to Have Perpetrated Multi-million Dollar Schemes to Defraud Investors, Doctors, and Patients. endobj >> /K 186 0 R CNMN Collection /P 40 0 R The story raised concerns about the accuracy of Theranos blood-testing technology, which put patients at risk of having conditions either misdiagnosed or ignored. /Pg 255 0 R /P 8 0 R << /S /LBody >> 87 0 obj /Lang (EN-US) << Nies was hired at Theranos in March 2015 for $185,000 a year to be the senior manager of customer service and call center operations at the company's headquarters in Palo Alto, Calif., according . >> << endobj /Pg 245 0 R endobj Theranos dissolved in September 2018 and founder Elizabeth Holmes now faces up to 20 years in prison for fraud and conspiracy. 382 0 obj /Resources 472 0 R /S /LBody >> >> << The site is secure. /Pg 244 0 R /Pg 251 0 R >> /S /LBody 270 0 obj That innovation combined with the use of technology to build a somewhat bulkier though still miniature and portable yet more reliable version of the micro-Lab would have provided plenty of opportunity to make strides towards the dream of empowering people with reliable, timely and inexpensive blood testing. >> /S /P 198 0 obj endobj Heinz and Kraft Foods. /Pg 257 0 R /Lang (EN-US) /K 51 /P 8 0 R /Lang (EN-US) endobj 194 0 obj 130 0 obj /MediaBox [0 0 612 792] /S /LI 187 0 obj It involves a dream, a mission, a plan, a vision and quite possibly monumental corruption. 32 0 obj endobj endobj /Pg 245 0 R 280 0 obj << endobj /S /LI >> Nov 8, 2017. /Lang (EN-US) endobj << Theranos founder Elizabeth Holmes arrives at San Jose court over alleged fraud. /P 51 0 R /K 6 Theranos gambit may have extended over time precisely because all four biases played a role in the making of a dream that was never fully tested against the constraints of reality. The mission statement of Theranos is stated as, "To make actionable information accessible to everyone at the time that it matters". endobj >> /P 311 0 R << << /Lang (EN-US) "I was taken with the idea . /S /P null null 197 0 R null null null 198 0 R null null null 50 0 obj endobj 176 0 obj /Pg 258 0 R /Type /Pages This district, led by Silicon Valley, is at the center of modern technological innovation and entrepreneurial spirit; capital investment makes that possible. 210 0 obj << /P 51 0 R << 89 0 obj /S /LBody 135 0 obj /S /LI /StructParents 1 << << The . endobj /StructParents 10 31 0 obj /S /P 142 0 obj /Parent 14 0 R /S /LBody 112 0 obj /Pg 254 0 R /Pg 249 0 R /Pg 244 0 R >> 21 0 obj /S /L endobj In reality, Theranos couldn't perform more than 12 tests on its Edison devices, former lab . /Lang (EN-US) << /S /LI << At times during that period, Balwani worked in several capacities including as a member of the companys board of directors, as its president, and as its chief operating officer. 251 0 obj 247 0 obj /Pg 252 0 R /P 8 0 R endobj 119 0 obj /Pg 242 0 R endobj << /Pg 248 0 R /StructParents 7 endobj Avoid simply listing what your company does and shift your focus to the bigger picture: what guides your company strategy and inspires your workforce. << /S /LBody /MediaBox [0 0 612 792] << >> /P 8 0 R << /Pg 247 0 R << endobj >> >> >> /K 28 /DropCap /Figure 342 0 obj >> /Resources 452 0 R << >> /Annots [] Walgreens ended its blood-testing partnership with the company, and the Department of Health and Human Services effectively banned Theranos in 2016 from doing any blood testing work at all. The defendants also represented to investors that Theranos would generate over $100 million in revenues and break even in 2014 and that Theranos expected to generate approximately $1 billion in revenues in 2015 when, in truth, the defendants knew Theranos would generate only negligible or modest revenues in 2014 and 2015. >> /Lang (EN-US) /S /LI /Lang (EN-US) << Balwani, 53, of Atherton, Calif., was employed at Theranos from September of 2009 through 2016. 154 0 obj endobj /K 154 0 R /Nums [0 [15 0 R 16 0 R 17 0 R 18 0 R 19 0 R 20 0 R 21 0 R 22 0 R 23 0 R 94 0 R /P 8 0 R 374 0 obj >> /S /LBody >> >> 122 0 obj /Lang (EN-US) /S /LI /S /LI /Contents [481 0 R 482 0 R 483 0 R] /CropBox [0 0 612 792] /ITXT (2.1.7) /S /LBody >> endobj << >> >> /K 11 >> /Parent 13 0 R 284 0 obj /Pg 256 0 R 91 0 obj >> Many of those statements were outright falsehoods or, more charitably, danced around the truth. /Pg 258 0 R /Lang (EN-US) /Rotate 0 >> /CropBox [0 0 612 792] /S /L /S /LI