The matter was assigned to the Honorable Lucy H. Koh, U.S. District Judge, for further proceedings. /Lang (EN-US) endobj 131 0 obj /Type /Page /P 55 0 R /K [380 0 R 381 0 R] /CropBox [0 0 612 792] endobj endobj /S /LBody >> /P 313 0 R /Lang (EN-US) 5 [null null 137 0 R null null null 138 0 R null null null endobj Having a vested interest in what is at stake as is often the case with founders and investors and envisioning the desired end state via inflexible goals may create a condition known as motivated blindness that can paradoxically prevent us from making realistic progress. null 49 0 R null null 157 0 R null null] /P 281 0 R /S /LI 126 0 obj >> /Lang (EN-US) >> << 196 0 obj >> /P 33 0 R << 195 0 obj endobj /K 14 The company spent over $150,000 surveilling her and another whistleblower. 258 0 obj /P 51 0 R /P 50 0 R /Tabs /S >> The .gov means its official.Federal government websites often end in .gov or .mil. endobj /Pg 238 0 R endobj /K 0 A mission that reads more like a fact sheet than something that explains a company's reason for existing won't be effective. >> /S /LBody What we know for certain is that behind this particular corporate failure lies a cautionary tale of boundless visioning that all investors, entrepreneurs and organizations seeking breakthrough innovations should be interested in further understanding. /S /LI >> /Lang (EN-US) /S /LBody /S /P /K 10 >> Just 12 tests were performed on Edison devices, and the Edison analyzer could only run one type of test for one patient at a given time, she said. << /K 11 /S /LBody >> /Count 5 endobj endobj Columbia University is one of the world's most important centers of research and at the same time a distinctive and distinguished learning environment for undergraduates and graduate students in many scholarly and professional fields. /Resources 468 0 R /Contents [461 0 R 462 0 R 463 0 R] /StructParents 17 >> 137 0 obj /P 51 0 R The engrossing optimism that this may have generated in its founder, Elizabeth Holmes, and other champions of the companys vision is understandable. /S /LBody endobj With << endobj >> endobj >> /K 9 << 119 0 obj /P 48 0 R /ModDate (D:20180314090210-07'00') /S /P 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 255 0 R 145 0 R null null null 146 0 R null null null 147 0 R null /K 160 0 R 83 0 obj 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. /Lang (EN-US) /Type /MCR /Pg 247 0 R endobj /Tabs /S endobj The Journal reported that in 2015, the technology was only used for 15 tests. 113 0 obj /Pg 248 0 R endobj >> /P 8 0 R 328 0 obj /P 48 0 R /S /LBody /S /LI And at least one employee told the financial newspaper Theranos executivesdid not report test results that would have caused concerns about the machines accuracy. /K 138 0 R 93 0 R] << null] /P 299 0 R /S /LBody << >> >> /MediaBox [0 0 612 792] /S /P >> >> endobj /S /LI /P 343 0 R endobj endobj << << The prosecution is the result of an investigation by the FDA Office of Criminal Investigations, the FBI, and the US Postal Inspection Service. Several months later, with encouragement from her professor, Channing Robertson, Holmes quit Stanford. 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. Holmes fostered a culture of fear because it served her needs. >> /P 262 0 R endobj endobj flagrantly vague and often outright untruthful statements. /Parent 14 0 R /Lang (EN-US) endobj endobj 297 0 obj /P 329 0 R /Pg 246 0 R The indictment charges each defendant with two counts of conspiracy to commit wire fraud, in violation of 18 U.S.C. >> /S /LBody At the time, Holmes, 39,was a mother of a 1-year-old son and pregnant with another child. 89 0 obj /Chart /Figure Theranos's mission statement is "Our mission is to make actionable information accessible to everyone at the time it matters". Here are three culture takeaways from the Theranos scandal that are relevant to all leaders and employees. endobj GET FOX BUSINESS ON THE GO BY CLICKING HERE. /Pg 247 0 R 210 0 obj 69 0 obj << /K 10 endobj endobj 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. /Parent 12 0 R /Lang (EN-US) >> /P 42 0 R << >> << x+ | << /S /LBody /Type /Page >> /K 177 0 R /K 25 /P 48 0 R /K 172 0 R /Tabs /S Theranos founder and CEO Elizabeth Holmes speaks at the Fortune Global Forum in San Francisco, California, on Monday, Nov. 2, 2015. 9 [null null 157 0 R null null null 158 0 R null null null /Count 5 endobj /Lang (EN-US) /Pg 256 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 14 /P 8 0 R >> endobj >> In the end, the innovations Theranos was after were not only meant for its own success but to secure a better future for millions of people. >> /Pg 237 0 R /Annots [] /Type /Page /K 16 /K [349 0 R 350 0 R 351 0 R 352 0 R 353 0 R] >> /P 315 0 R >> /P 287 0 R 189 0 obj /P 8 0 R >> /K 32 endobj /S /LBody In 2013, things had "started to get a bit tight," Yam said. 26 0 obj 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. << /CropBox [0 0 612 792] None of the information on this page has been provided or approved by Theranos. >> 129 0 obj /Metadata 4 0 R >> /CropBox [0 0 612 792] Morever, Holmes needs to grow a . Holmes dropped out of Stanford University at 19 to start the medical diagnostics company in 2003. << Similarly, defendants purchased and used commercially-available analyzers to test patient blood, while representing to investors that Theranos conducted its patients tests using Theranos-manufactured analyzers. /P 59 0 R 274 0 obj 3 min read. . endobj << /CropBox [0 0 612 792] /K 232 0 R >> >> /K 31 /P 8 0 R 382 0 obj /Pg 250 0 R /K 6 /P 50 0 R /S /LBody /P 355 0 R << /K 140 0 R /Pg 235 0 R /P 50 0 R endobj /Type /Page Four years after the top two Theranos executives, Elizabeth Holmes and Ramesh "Sunny" Balwani, were first indicted together on a dozen federal fraud charges stemming from their time . endobj /Annots [] 161 0 obj /StructParents 21 Fear a Culture of Fear. /S /P >> endobj Holmes was found guilty on four felony fraud counts associated with a loss to victims of at least $120 million. /P 345 0 R /Annots [] Theranos's mission statement is "To facilitate the early detection and prevention of disease and empower people everywhere to live their best possible lives." endobj << >> >> 146 0 obj /Pg 248 0 R /S /LI 290 0 obj /S /P /Lang (EN-US) THERANOS FOUNDER ELIZABETH HOLMES IN COURT; ANATOMY OF A FRAUD. /Contents [429 0 R 430 0 R 431 0 R] /Pg 241 0 R >> 66 0 R 67 0 R 68 0 R 69 0 R] /S /P << /Pg 244 0 R 259 0 obj 342 0 obj /Pg 240 0 R >> /P 309 0 R 93 0 obj endstream >> /Parent 13 0 R 191 0 obj /S /LI /S /LI 14 [null null 186 0 R null null null 187 0 R null null null >> 49 0 obj /P 370 0 R /CropBox [0 0 612 792] /Lang (EN-US) /P 336 0 R >> /P 358 0 R >> 139 0 R null null null 140 0 R null null null 141 0 R null /K [374 0 R 375 0 R 376 0 R 377 0 R 378 0 R 379 0 R] /Resources 444 0 R /S /LBody << The once-lauded businesswoman ultimately stepped down from the company, which announced in Sept. 2018 it would be closing. /Lang (EN-US) /S /LI /S /L /S /LI << /P 314 0 R >> endobj John Carreyrou writes the story of a gifted 19-year-old who founded a health . 95 0 obj /P 55 0 R endobj /Pg 235 0 R /S /LI /S /LI endobj For the small private firm, the publically traded company or the large enterprise vision, effort and determination needs to be firmly tied to the track - compliance. /P 51 0 R null 52 0 R 53 0 R] endobj The average salaries at Bloomberg rank the highest, with their employees earning an. /K 14 /Lang (EN-US) Holmes unflappability may have made it difficult for Theranos board members and prospective clients to raise or press on with the right questions at the right time. endobj /Lang (EN-US) Did you ever provide financial projections to investors? Robert Leach, an assistant US attorney,asked Yam. In his book Bad Blood, John Carreyrou documented accounts describing Elizabeth Holmes unwillingness to revise the original micro-Lab specs and her reported tendency to shut off whoever tried to provide realistic feedback or solutions to the technical problems Theranos was facing. /Lang (EN-US) /Type /MCR /Resources 484 0 R endobj /K 148 0 R /Tabs /S endobj endobj 399 0 obj >> /S /P >> During the trial Holmes accused her ex-boyfriend and business partner, Ramesh "Sunny" Balwani, of emotional and sexual abuse at the time of the alleged crimes, impairing her mental state. /Pg 235 0 R >> >> !xRnE1$g9`8\\5g1^"z+. /K 201 0 R /K 190 0 R /P 379 0 R endobj /P 8 0 R 354 0 obj << << endobj >> /K 20 null] /Pg 235 0 R 149 0 obj /P 8 0 R /Pg 247 0 R /Pg 240 0 R Market data provided byFactset. >> /CropBox [0 0 612 792] << /S /LBody endobj /S /LI /Lang (EN-US) /P 8 0 R 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. /S /P /K 24 /Lang (EN-US) /Contents [485 0 R 486 0 R 487 0 R] /S /LI /K 18 338 0 obj << /Lang (EN-US) 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. null null 121 0 R null null null 122 0 R null null null << << endobj /K 142 0 R << 5 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 endobj /S /LI /Lang (EN-US) /K 14 2018-03-14T09:02:10-07:00 271 0 obj /Pg 248 0 R Theranos is a now-defunct healthcare technologystartup founded by disgraced Stanford drop-out Elizabeth Holmes. /K 11 << >> /P 317 0 R >> /S /LBody << endobj >> << /K 159 0 R << /K 22 The next witness was Erika Cheung, who was hired by Theranos out of undergrad as a lab associate. << endobj /Lang (EN-US) /Pg 255 0 R >> 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. << endobj >> << /K 216 0 R 183 0 obj >> << /Lang (EN-US) << >> /Tabs /S : Sign up for our trending newsletter to get the latest news, This article originally appeared on USA TODAY: Ex-Theranos CEO Elizabeth Holmes has second child, seeks prison delay, American businessperson; a subject of an SEC investigation, the failed Silicon Valley startup that sought to revolutionize blood testing, Student accused of attacking teacher's aide over Nintendo Switch, Optimism of US consumers declined in February, reflecting fears of a recession, her conviction onfour counts of fraud and conspiracy, Sign up for our trending newsletter to get the latest news, Ex-Theranos CEO Elizabeth Holmes has second child, seeks prison delay, Kellyanne Conway, George Conway To Divorce After Decadeslong Marriage: Report, Reports: 3 children dead, 2 wounded in attack at Texas home, 'Extremely dangerous': Spike in illegal crossings at Canada-Vermont border has feds sounding alarm, School punished teen girl for working out in sports bra in 100-degree Texas heat, ACLU says, Republicans Use Arcane Political Tactic to Thwart Democrats, I Wore Katie Holmes Go-To Bag Trend for a Week, and I Finally Get the Appeal, Alex Murdaugh sentenced to life in prison for murders of wife and son, NBA Player Richaun Holmes Sues Sacramento Bee Parent for Defamation, Murdaugh defense vows appeal, even to Supreme Court, Alex Murdaugh sentenced to life in prison. null 114 0 R null] /MediaBox [0 0 612 792] Elizabeth Holmes donated The conduct alleged in these charges erodes public trust in the safety and effectiveness of medical products, including diagnostics. The employees at Morgan Stanley earn an average yearly salary of $103,933 per year, and the salaries at National Journal average $73,533 per year. /Pg 236 0 R Government inspectors who arrived at Theranos in response to Cheungs letter found conditions similar to those in the complaint. /Pg 256 0 R /Lang (EN-US) /P 48 0 R /P 8 0 R Cheungs testimony continues today. 142 0 obj application/pdf /Parent 14 0 R 201 0 obj 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. /K 154 0 R /K 28 >> 179 0 obj /Resources 480 0 R >> >> /StructTreeRoot 3 0 R /P 375 0 R /K 10 /S /LI Holmes grew up in Houston, Texas and studied chemical engineering at . 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. >> endobj /P 8 0 R 384 0 obj << The United States Postal Inspection Service has a long history of successfully investigating complex fraud cases, said Inspector in Charge Rafael E. Nuez. endobj 140 0 obj 114 0 obj /P 8 0 R /S /P /Lang (EN-US) >> 159 0 obj /S /LI >> /Pg 236 0 R /P 352 0 R /S /LBody << Theranos wanted to make detailed blood sample analysts accessible to all doctors in a timely manner. >> /K 8 /K [368 0 R 369 0 R 370 0 R 371 0 R 372 0 R 373 0 R] /Lang (EN-US) 30 0 obj /P 292 0 R endobj /K 10 >> /Pg 239 0 R She had a charisma to her; she was very articulate,Cheung saidof Holmes. << /S /P >> /S /LBody /K 1 /S /LI /K 6 /K 7 endobj 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. /Lang (EN-US) /Rotate 0 /Pg 256 0 R endobj /S /LI endobj endobj >> /S /P << 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. >> /S /P /P 51 0 R /Pg 258 0 R /Lang (EN-US) << endobj << /P 48 0 R /K 184 0 R >> /P 171 0 R << /K 26 39 0 obj /P 50 0 R /Tabs /S /Pg 250 0 R endobj endobj endobj /S /LI /P 8 0 R >> /Annots [] /P 54 0 R /K 178 0 R endobj /S /LBody Anyone who engages in deceptive practices should know they will not go undetected and will be held accountable. /CropBox [0 0 612 792]
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