227 0 obj << endobj /S /Span /Pg 252 0 R . /S /LI /CropBox [0 0 612 792] /K 132 0 R /Pg 235 0 R Holmes, 34, of Los Altos Hills, Calif., founded Theranos in 2003. >> >> >> Around the time that Theranos was losing nearly $2 million per week, investors in the blood-testing startup were being told that the company would soon be bringing in almost $1 billion per year. >> /Lang (EN-US) << /Lang (EN-US) /Pg 253 0 R /K 231 0 R /S /L << >> >> /P 324 0 R /Pg 245 0 R << /Lang (EN-US) endobj Theranos | 27,358 followers on LinkedIn. /S /LBody /P 48 0 R /S /LI << Moreover, Theranos and Holmes made "false and misleading statements" in press accounts to bolster the startup's profile. >> /Type /Page In November 2022, Holmes was sentenced to 135 months in prison for defrauding investors in the failed Silicon . /Resources 460 0 R /Parent 13 0 R >> /Pg 254 0 R /S /LI /P 380 0 R /K 129 0 R /K 225 0 R endobj endobj endobj /S /L /K 10 . /Pg 253 0 R >> /P 266 0 R /P 50 0 R This conspiracy misled doctors and patients about the reliability of medical tests that endangered health and lives.. 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. /P 381 0 R >> 331 0 obj /P 313 0 R << << >> /Lang (EN-US) 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. /ParentTreeNextKey 24 endobj /P 352 0 R 21 [60 0 R 61 0 R 62 0 R null null 229 0 R null null null 230 0 R The Company's clinical laboratory offers comprehensive laboratory tests. A sign outside of the headquarters of Theranos in Palo Alto, California on January 24, 2016. /S /LI . /P 277 0 R /K 159 0 R /P 8 0 R /P 50 0 R Ars may earn compensation on sales from links on this site. Todays indictment alleges that through their company, Theranos, CEO Elizabeth Holmes and COO Sunny Balwani not only defrauded investors, but also consumers who trusted and relied upon their allegedly-revolutionary blood-testing technology., This indictment alleges a corporate conspiracy to defraud financial investors, said Special Agent in Charge Bennett. /K 210 0 R /Tabs /S The Securities and Exchange Commission also brought civil fraud charges against Holmes and Balwani. endobj Those biases can be understood as the blindness brought about by what seems preeminently important, the righteousness generated by what sounds inherently right, the operational myopia triggered by what is situated far away from us and the sense of potency derived from endeavoring to create something new. /K 3 /Lang (EN-US) >> << /S /LI But thats not what the company was telling investors, according to new documents shared during the jury trial of Theranos founder and CEO Elizabeth Holmes. 14 0 obj /Rotate 0 The . /P 372 0 R /Annots [] << endobj /P 55 0 R /Pg 256 0 R >> Cheung said she joined the company largely on the star power of its CEO. << /S /LI 1. >> 15 [null null 192 0 R null null null 193 0 R null null null /Pg 238 0 R /K 4 /Pg 243 0 R 264 0 obj /K 187 0 R << /Type /Page /P 48 0 R Subscribe to our channelhttp. /S /LBody /S /LBody /MCID 2 >> /K 10 226 0 obj /Lang (EN-US) /Lang (EN-US) /P 301 0 R endobj 155 0 obj 377 0 obj /P 8 0 R /K 233 0 R /P 8 0 R 34 0 obj 246 0 obj /Subtype /XML 185 0 obj 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. /ModDate (D:20180314090210-07'00') /P 297 0 R 347 0 obj >> /P 8 0 R 255 0 obj Follow Mike Snider on Twitter:@mikesnider. 389 0 obj >> << >> >> 349 0 obj /Contents [413 0 R 414 0 R 415 0 R] << << /Lang (EN-US) /K [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 24 0 R /Contents [489 0 R 490 0 R 491 0 R] /K 154 0 R /S /LBody /K 1 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. << /K 24 /S /LBody 297 0 obj /S /L /Pg 257 0 R /K 18 /P 51 0 R /K [368 0 R 369 0 R 370 0 R 371 0 R 372 0 R 373 0 R] /S /LBody She now has "two very young children hertoddler and an infant," according to a recent court filing. << >> /K 6 46 0 obj endobj >> /Pg 235 0 R endobj 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 . >> /Lang (EN-US) << >> /StructTreeRoot 3 0 R endobj endobj endobj /K 32 Theranos founder Elizabeth Holmes arrives at San Jose court over alleged fraud. /P 8 0 R 82 0 obj /K 32 << /Kids [235 0 R 236 0 R 237 0 R 238 0 R 239 0 R] We connect the world's decision makers to accurate information on the financial markets and help them make faster, smarter decisions. >> /P 8 0 R It involves a dream, a mission, a plan, a vision and quite possibly monumental corruption. 234 0 obj endobj << 220 0 obj >> << /MediaBox [0 0 612 792] /K 2 /S /LI /P 318 0 R /P 55 0 R /S /P endobj /S /LI << >> >> /P 280 0 R 117 0 obj /Lang (EN-US) 162 0 obj endobj /K 23 /Lang (EN-US) 373 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. endobj >> << /Lang (EN-US) >> /Type /MCR /S /LBody /Lang (EN-US) /K 195 0 R The company's stated mission was to "revolutionize medical laboratory testing," according to the Department of Justice. /Lang (EN-US) /S /LI Prosecutors allege that Holmes and Balwani deliberately misled investors, policymakers and the public about the accuracy of Theranos blood-testing technologies since 2013, at least, EX-BILLIONAIRE ELIZABETH HOLMES CAN'T PAY LAWYERS DEFENDING HER IN THERANOS FRAUD CLAIM. << Both defendants appeared today before U.S. Magistrate Judge Susan van Keulen for their initial appearances. /K 12 /P 8 0 R /K 14 >> /K 14 /S /LI endobj >> /Lang (EN-US) >> endobj /Pg 252 0 R >> Consider Elizabeth Holmes obsession with producing as small a micro-Lab as possible or with using just a few drops of blood in order to conduct the myriad of tests Theranos promised. 52 0 obj endobj /Lang (EN-US) /P 55 0 R << /K 128 0 R endobj overstating the extent of Theranos' relationships with commercial partners and government entities, to whom they had also made misrepresentations . /Pg 246 0 R /P 336 0 R >> /P 308 0 R /Pg 258 0 R /S /LI null 52 0 R 53 0 R] /P 33 0 R 5 0 obj endobj endobj endobj << /P 8 0 R endobj 277 0 obj >> /K 18 >> /Count 9 null null null 231 0 R null null null 232 0 R null null /P 367 0 R endobj /K 22 >> 149 0 R null null null 150 0 R null null null 151 0 R null /P 50 0 R /Count 5 /Pg 244 0 R /K 213 0 R /Pg 256 0 R endobj /Lang (EN-US) << 174 0 obj /P 8 0 R << >> >> 383 0 obj Powered and implemented byFactSet Digital Solutions. /Chart /Figure /S /LBody 265 0 obj /Pg 240 0 R /P 51 0 R << /P 329 0 R << If convicted, the defendants face a maximum sentence of twenty (20) years in prison, and a fine of $250,000, plus restitution, for each count of wire fraud and for each conspiracy count. << 324 0 R 325 0 R 326 0 R 327 0 R 328 0 R 329 0 R 330 0 R] endobj /S /LBody << /K 165 0 R /S /LBody /Pg 236 0 R /S /LI endobj << Brian Grossman had 20 years of experience in the healthcare space but his firm, PFM Health Sciences, invested $96 . /Filter /FlateDecode >> uuid:08e7f9c5-06b3-4447-b9e6-d8f448ec8b85 100 0 obj /Lang (EN-US) /Pg 238 0 R >> The next witness was Erika Cheung, who was hired by Theranos out of undergrad as a lab associate. endobj /P 8 0 R << << /Pg 238 0 R /P 55 0 R 261 0 obj /K 22 << /K 15 << "Sunny Balwani did not start Theranos," said the lawyer . /S /P << >> >> /Pg 243 0 R /S /P endobj >> /S /LBody /Lang (DE-DE) endobj /StructParents 6 /S /LI Before sharing sensitive information, make sure you're on a federal government site. /S /LI /P 303 0 R The data on this page is also based on data sources collected from public and open data sources on the Internet and other locations, as well as proprietary data we licensed from other companies. /StructParents 17 << /K 170 0 R /Pg 256 0 R Anyone who engages in deceptive practices should know they will not go undetected and will be held accountable. >> << /K 152 0 R /S /LBody /K 184 0 R /Lang (EN-US) << Specifically, the defendants claimed that Theranos developed a revolutionary and proprietary analyzer that the defendants referred to by various names, including as the TSPU, Edison, or minilab. The prosecution is the result of an investigation by the FDA Office of Criminal Investigations, the FBI, and the US Postal Inspection Service. >> /K 29 >> /K 0 /A 259 0 R >> The defendants claimed the analyzer was able to perform a full range of clinical tests using small blood samples drawn from a finger stick. /Lang (EN-US) /Pg 245 0 R 65 0 obj Photographer: David Paul Morris/Bloomberg *** Local Caption *** Elizabeth Holmes. endobj endobj /CropBox [0 0 612 792] endobj /S /P << . /S /LBody /Lang (EN-US) /S /LI 2018-03-14T08:41:27-07:00 Theranos's mission statement is "To facilitate the early detection and prevention of disease and empower people everywhere to live their best possible lives.". /Pg 235 0 R 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. 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. 365 0 obj /Pg 250 0 R /StructParents 13 /P 349 0 R /P 319 0 R /P 48 0 R /P 8 0 R /K 161 0 R uuid:f59fd1a5-0a21-408a-99c1-079770aebbbd /S /LBody >> /P 361 0 R /S /LI >> /Lang (EN-US) null null 121 0 R null null null 122 0 R null null null /Pg 256 0 R 185 0 R null null] /Lang (EN-US) /K 1 /StructParents 7 /P 8 0 R /K 6 /Pg 235 0 R >> /K 30 The vision was to revolutionize blood testing and place these miniature labs in homes across the world. endobj /Lang (EN-US) /Parent 14 0 R null 114 0 R null] endobj /Parent 11 0 R endobj /S /LI /K 10 111 0 obj /Lang (EN-US) Holmes said in the recent court filing, she had planned to attend a wedding of close friends in Mexico and theticket was canceled immediately when the governmentraised the issue. << endobj 3553. 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 Next to a perfectly dosed narrative of black turtlenecks, sprawling office facilities, glossy paper spreads and alluring marketing campaigns, the supposed Apple look-alike of the health technology industry tantalized investors and consumers with its mission, to facilitate the early detection and prevention of disease and empower people everywhere to live their best possible lives. Its no surprise that many bought into it. /Pg 253 0 R >> endobj endobj 10 0 obj /S /P /K 28 << /K 205 0 R /S /LBody /Parent 14 0 R << /S /LBody 298 0 obj /K 2 << 4 [null null 131 0 R null null null 132 0 R null null null /K 2 21 0 obj >> /Pg 243 0 R /StructParents 11 /Tabs /S << However, any sentence following conviction would be imposed by the court after consideration of the U.S. /P 8 0 R endobj >> /Lang (EN-US) An official website of the United States government. /Lang (EN-US) endobj /P 364 0 R /Pg 239 0 R >> /Rotate 0 229 0 obj >> /P 355 0 R Holmes fostered a culture of fear because it served her needs. 290 0 obj >> endobj /Lang (EN-US) /Pg 255 0 R While working at Theranos, Cheung sent an email to others in the company, sharing her concerns about the Edison machines. >> 256 0 obj /K 14 /K 18 << /S /L endobj >> >> /K 176 0 R /Pg 239 0 R 181 0 obj /S /LBody null null 214 0 R null null] << >> 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. There is no try', stolen from . >> /Lang (DE-DE) endobj << /Lang (EN-US) << /P 342 0 R /K 26 Here's Robert Leach, assistant U.S. attorney, who is prosecuting the case against Holmes: "This is a case about fraud, about lying and cheating to get money," Leach says. /P 55 0 R >> /P 8 0 R 180 0 obj /S /P 228 0 obj /K 202 0 R /K 27 47 0 obj 19 [null null 215 0 R null null null 216 0 R null null null endobj >> /StructParents 2 /Pg 238 0 R endobj /K 164 0 R /Pg 239 0 R /Pg 255 0 R /S /LI /Pg 255 0 R The defendants also represented that the analyzer could produce results that were more accurate and reliable than those yielded by conventional methodsall at a faster speed than previously possible. 360 0 obj These detailed accounts show a pattern of behaviors consistent with a distorted motivational and cognitive state. << << After asking questions about Theranos continued losses and lack of revenue, prosecutors showed Yam a document they said was shared with investors; it projected $140 million in revenue in 2014 and $990 million in 2015. /Resources 488 0 R /K 33 /S /LI /Strikeout /Span >> /Placement /Block /P 381 0 R >> << /S /LBody Theranos eventually settled that matter with the government, voluntarily closing all of its labs. /Contents [449 0 R 450 0 R 451 0 R] /Pg 237 0 R /Pg 248 0 R << /Type /Page 1349, and nine counts of wire fraud, in violation of 18 U.S.C. /CropBox [0 0 612 792] . endobj There are at least four biases that can let a belief about a desired future state shape reality despite its disconnectedness from reality. << << endobj << The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. /Resources 468 0 R /Parent 13 0 R endobj endobj << /P 278 0 R /P 288 0 R /S /LI endobj 212 0 obj >> such statements undermine confidence . /P 359 0 R endobj endobj /K 8 /S /LI University Mission Statement. /K 22 /Lang (EN-US) /P 325 0 R /K 9 /K 18 >> Claiming and updating your company profile on Zippia is free and easy. /K 2 << /Type /Pages endobj The national average salary for a Theranos employee in the United States is $44,094 per year. /Rotate 0 The tests performed on Theranos technology, in addition, were likely to contain inaccurate and unreliable results. >> /Pg 257 0 R >> /Pg 247 0 R Mission statements, where crafted and utilized effectively, have been proven to drive billions of dollars in corporate value. << endobj >> /K 226 0 R << endobj /S /LI << >> 300 0 obj 164 0 obj CNN . 232 0 obj /MCID 2 The Indictment Alleges That Investors Were Defrauded. /Pg 235 0 R 31 0 obj >> /K 24 /S /LBody 291 0 obj << In fact, those challenges dwarfed in relation to the potential benefits of the vision the tech company eagerly shared with those with whom it wished to partner. According to the indictment returned yesterday and unsealed today, the charges stem from allegations Holmes and Balwani engaged in a multi-million dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients. /K 173 0 R 158 0 obj << endobj /Type /Page 302 0 obj null null null null 168 0 R null null null 169 0 R null /S /P /Pg 238 0 R /P 8 0 R << /S /LI << endobj endobj The Theranos founder intentionally deceived investors, a US . /K [30 396 0 R] endobj 342 0 obj They proposed revoking the companys license to test human specimens. << 286 0 R 287 0 R 288 0 R 289 0 R 290 0 R 291 0 R 292 0 R 293 0 R 294 0 R 295 0 R endobj /Resources 444 0 R /Type /Page 125 0 obj /P 379 0 R endobj << /CropBox [0 0 612 792] /Pg 240 0 R Did you ever provide financial projections to investors? Robert Leach, an assistant US attorney,asked Yam. 259 0 obj 368 0 obj endobj /Pg 251 0 R endobj Four Blind Spots at the Core of Theranos' Failure. 98 0 obj /K 182 0 R /Contents [453 0 R 454 0 R 455 0 R] endobj /S /LI /P 48 0 R endobj >> /Type /Pages /StructParents 21 << >> Although it is a merger of two major companies in 2015, Kraft Heinz's mission and vision statements retain the critical elements and objectives contained in the mother firms - H.J. /K 28 /K 19 endobj /Pg 257 0 R Total losses surpassed $800 million, prosecutors said. 345 0 obj 166 0 obj Theranos' mission: a blood test requiring only a pinprick of blood, enough to run dozens of medical tests on the startup's hi-tech machines. 213 0 obj /Lang (EN-US) endobj /P 42 0 R 141 0 obj >> The business had garnered hundreds of millions of dollars in investments and was valued at $9 billion in 2015, when a Journal expose showed the company had some not-so-favorable secrets. /Pg 247 0 R >> /P 8 0 R endobj 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. The Seattle-based coffee giant originated in 1971 and has since become ubiquitous around the world. /Parent 14 0 R endobj /Parent 14 0 R /Lang (EN-US) /P 380 0 R >> 109 0 obj << /S /LBody Forbes has since . /Rotate 0 /Pg 236 0 R 270 0 obj /Pg 247 0 R /K 34 endobj >> /K 6 >> /Pg 256 0 R /Pg 256 0 R /K 10 338 0 obj 357 0 obj /P 347 0 R >> << /S /LBody /K 21 >> /P 8 0 R /K 2 /S /LBody All rights reserved. /Lang (EN-US) /S /P /Pg 258 0 R /CropBox [0 0 612 792] /K 18 /P 55 0 R 56 0 obj /S /LBody 152 0 obj /Pg 241 0 R /S /LBody 370 0 obj /Pg 235 0 R 8 [null null 152 0 R null null null 153 0 R null null null Many of those statements were outright falsehoods or, more charitably, danced around the truth. /P 50 0 R 263 0 obj /K 41 /Endnote /Note stream /P 8 0 R /Pg 245 0 R /CropBox [0 0 612 792] >> >> /K 2 Elizabeth Holmes, the infamous biotech chief executive who promised to revolutionize blood testing, has been found guilty of fraud. << /S /LBody endobj << << /S /P /K 14 >> /K 9 /P 8 0 R /MediaBox [0 0 612 792] /K 157 0 R /S /LBody Claiming and updating your company profile on Zippia is free and easy. /Pg 255 0 R /S /LBody endobj << 131 0 obj /P 8 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. /K 174 0 R /MCID 2 /S /LI /P 8 0 R 95 0 obj /Pg 235 0 R endobj /K 118 0 R /Type /Page << 22 0 obj /P 8 0 R In the age of corporate purpose, the mission statement serves as a reminder of why an organization exists. /Contents [417 0 R 418 0 R 419 0 R] Holmes rocketed to Silicon Valley stardom nearly a decade ago when she started speaking publicly about Theranos's vision a small . /Annots [] endobj /Pg 241 0 R /Pg 235 0 R /Resources 464 0 R /Pg 249 0 R >> /P 59 0 R /K 21 254 0 obj /P 272 0 R >> The boundless part of her visioning deserves extra attention. Getty Images. >> /Lang (EN-US) /MediaBox [0 0 612 792] /S /LI /Pg 235 0 R 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. Holmes faces up to 20 years in prison. >> /Parent 14 0 R null] >> << /Lang (EN-US) endobj /P 8 0 R /K 6 /Tabs /S /S /P 376 0 obj 236 0 obj 106 0 obj Using a "nanotainer" (a small device designed to draw, retain, and analyze a . endobj /P 390 0 R /S /P 188 0 obj endobj endobj 223 0 obj /S /P << Elizabeth Holmes and her ill-fated blood-testing start up, Theranos, are the subjects of the latest exceptional read. /K 15 >> /TextBox /Art endobj /Pg 235 0 R 13 0 obj /K 125 0 R 382 0 obj /Pg 235 0 R /Lang (EN-US) /P 55 0 R Palo Alto, United States August 18, 2016: Elizabeth Holmes accepts The Entrepreneur award at, the 25th Annual Glamour Women of the Year Awards on Nov. 9, 2015, in New York. >> /P 381 0 R /Annots [] << /P 40 0 R Legal Statement. << /StructParents 20 /P 8 0 R << /K 30 /K 31 58 0 obj >> The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Cond Nast.