x+ | endobj endobj << CNMN Collection >> /StructParents 3 >> 258 0 obj /S /P >> /K 173 0 R /Type /MCR >> << endstream << endobj << Through these advertisements, the defendants explicitly represented to individuals that Theranoss blood tests were cheaper than blood tests from conventional laboratories to induce individuals to purchase Theranoss blood tests. /SourceModified (D:20180314151216) endobj >> /P 8 0 R /Pg 244 0 R /P 380 0 R >> >> /CropBox [0 0 612 792] >> >> 59 0 obj /P 8 0 R /K 15 /Lang (EN-US) /K 6 /Pg 248 0 R /P 48 0 R /S /LBody /K 128 0 R /S /LBody /P 8 0 R /P 343 0 R 319 0 obj >> ", EX-THERANOS CEO ELIZABETH HOLMES PROVIDING OWN DEFENSE IN CIVIL SUIT: REPORT. /P 51 0 R /P 44 0 R /P 46 0 R << endobj /Lang (EN-US) /Lang (EN-US) Using a "nanotainer" (a small device designed to draw, retain, and analyze a . /K 206 0 R /PageLayout /OneColumn >> /Lang (EN-US) Zippia gives an in-depth look into the details of Theranos, including salaries, political affiliations, employee data, and more, in order to inform job seekers about Theranos. /K 10 $12,600 to the Democratic Party. /S /LI endobj endobj /Pg 254 0 R /P 50 0 R /P 376 0 R -Theranos is now worth $9 billion dollars; Holmes currently owns about half the company-Forbes named her one of the youngest female self-made billionaire before the age of 30. . 240 0 obj << With /Pg 243 0 R /Pg 235 0 R /Pg 248 0 R endobj >> endobj /K 12 null null 121 0 R null null null 122 0 R null null null << 5 0 obj But what may be less intuitive is the effect that such optimism likely had on the ability of the companys senior leadership to consider the implications of their decisions and following actions. /K 18 /Rotate 0 /K 212 0 R endobj /Pg 247 0 R All rights reserved. >> << The site is secure. /Pg 235 0 R << /S /LI Theranos CEO Elizabeth Holmes on her company and the landscape of U.S. diagnostic-lab industry. Claiming and updating your company profile on Zippia is free and easy. << /S /LBody << /S /LI 233 0 obj << 166 0 obj /Lang (EN-US) 287 0 obj 370 0 obj /K 21 /K 12 /Lang (EN-US) /S /LBody /K 25 endobj endobj 189 0 obj >> /K 21 >> >> >> endobj endobj /K 10 /Type /Page endobj >> /Pg 257 0 R endobj endobj >> /Lang (EN-US) endobj << /Pg 255 0 R Employees in the top 10 percent can make over $68,000 per year, while employees at the bottom 10 percent earn less than $28,000 per year. /Rotate 0 endobj Answer 1. /Tabs /S /S /LBody /K 208 0 R /MarkInfo 2 0 R 384 0 obj endobj >> 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. /P 8 0 R /K 7 >> /Lang (EN-US) such statements undermine confidence . /Lang (EN-US) Government inspectors who arrived at Theranos in response to Cheungs letter found conditions similar to those in the complaint. >> /P 40 0 R << << /Parent 13 0 R /Annots [] THERANOS FOUNDER ELIZABETH HOLMES IN COURT; ANATOMY OF A FRAUD. << /S /LBody << 259 0 obj /K 9 /P 275 0 R << endobj 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. /Contents [465 0 R 466 0 R 467 0 R] /S /LI << /S /LI /Resources 436 0 R /K 167 0 R /K 175 0 R >> /P 287 0 R 210 0 obj /Rotate 0 None of the information on this page has been provided or approved by Theranos. << null null 174 0 R null null null 175 0 R null null null /K 217 0 R << 244 0 obj Fear a Culture of Fear. /K 229 0 R endobj endobj endobj >> /P 8 0 R << The company's stated mission was to "revolutionize medical laboratory testing," according to the Department of Justice. /P 277 0 R /S /LBody /Pg 242 0 R /Contents [481 0 R 482 0 R 483 0 R] /Pg 238 0 R >> /P 8 0 R << << /Lang (EN-US) >> /Pg 256 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. /P 339 0 R << 64 0 obj /Pg 255 0 R /S /P 65 0 R 66 0 R 67 0 R 68 0 R 69 0 R 70 0 R 71 0 R 72 0 R 73 0 R 74 0 R /S /P /Pg 235 0 R /K 2 21 [60 0 R 61 0 R 62 0 R null null 229 0 R null null null 230 0 R /S /LI /K 223 0 R /Pg 252 0 R /CropBox [0 0 612 792] Prosecutors Call Theranos Ex-CEO Elizabeth Holmes A Liar And A Cheat As Trial Opens Defense lawyers say Holmes believed the company could screen for hundreds of diseases with just a finger prick . /P 8 0 R << /P 8 0 R /K [28 394 0 R] Photographer: David Paul Morris/Bloomberg *** Local Caption *** Elizabeth Holmes. 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. << >> 261 0 obj << The Theranos story has been turned into an HBO . >> << /Lang (EN-US) 98 0 obj The company claimed to be able to provide over 240 finger-prick blood tests, including ones that could reportedly detect cancer, according to The Wall Street Journal. << << emblazoned in block capitals in the Theranos lobby, was 'Do or do not. endobj << >> /Marked true endobj /Resources 464 0 R /S /LI /P 48 0 R /P 48 0 R 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. /K 186 0 R >> 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 >> /P 380 0 R /K 18 The University recognizes the importance of its location in New York City and . /Pg 258 0 R >> >> >> endobj /P 48 0 R 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. << /K 18 /Lang (EN-US) endobj << endobj 364 0 obj >> >> /S /LBody endobj /S /LI Your California Privacy Rights | Do Not Sell My Personal Information << /S /P << >> endobj 183 0 obj /Lang (EN-US) endobj /Pg 256 0 R /S /P /Lang (EN-US) /K 14 201 0 obj 50 0 obj >> >> 22 0 obj endobj As years went by, whenever employees or experts raised warnings . /K 7 >> /P 372 0 R >> /S /LI A young (age-defying), pure-looking (evil-defying), masculine-sounding (stereotype-defying) female CEO speaking about Theranos unfulfilled feats in the present or past present tense, Holmes proposition was so enticing that she was able to assemble one of the most impressive boards in corporate America. 168 0 obj /Lang (EN-US) >> 341 0 obj >> /S /P >> /S /LBody Based in Palo Alto, CA, Theranos is a small health care company with only 100 employees and an annual revenue of $55.3M. >> >> /K 261 0 R >> 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. << /K 227 0 R /P 48 0 R endobj endobj /Lang (EN-US) 160 0 obj 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. /Pg 257 0 R 105 0 obj 381 0 obj /Pg 235 0 R /StructParents 20 /K 31 /Lang (EN-US) /Resources 444 0 R 95 0 obj /K [111 0 R 112 0 R 113 0 R 114 0 R] endobj /P 302 0 R /S /P endobj 369 0 obj In reality, Theranos couldn't perform more than 12 tests on its Edison devices, former lab . << /StructParents 14 132 0 obj 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. /S /P /O /Layout /S /LI /Chart /Figure /P 8 0 R >> /StructParents 10 /S /LI << For example, with respect to investors, defendants performed technology demonstrations during which defendants intended to cause potential investors to believe blood tests were being conducted on Theranoss proprietary analyzer when, in fact, the analyzer really was running a null protocol and was not testing the potential investors blood. endobj >> >> Paradoxically, instead of warranting greater scrutiny, the very gap between Theranos projected solution and the requirements of the available blood-testing technology may have prevented a number of decision-makers from focusing on practical questions during evaluation of the companys potential and its various promises. 339 0 obj /K 134 0 R /Pg 253 0 R /MediaBox [0 0 612 792] 251 0 obj /P 63 0 R /Resources 412 0 R endobj /P 264 0 R << 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. Department of Justice >> endobj /S /LBody << << 194 0 obj 289 0 obj /Resources 472 0 R endobj Both schemes involved efforts to promote Palo Alto, Calif.-based Theranos. /P 3 0 R 143 0 obj /Tabs /S >> Legal Statement. << 11 0 obj 390 0 obj /Lang (EN-US) /P 299 0 R >> Theranos stood as the next big breakthrough innovator in the healthcare industry offering an affirming achievement of the value of human ingenuity. << /Type /Page >> /P 320 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 3 0 obj /S /P << endobj endobj /Lang (EN-US) /P 381 0 R /Lang (EN-US) /K 124 0 R /Pg 257 0 R /K 20 Theranos employees are most likely to be members of the Democratic Party. /Lang (EN-US) /Rotate 0 /MediaBox [0 0 612 792] /Contents [441 0 R 442 0 R 443 0 R] >> << WIRED Media Group /P 8 0 R endobj >> /Rotate 0 >> 3 min read. /Lang (EN-US) endobj endobj I write about culture, leadership and ethics in business and work. 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. /Pg 248 0 R >> 273 0 obj /P 50 0 R 325 0 obj /P 50 0 R 29 0 obj 217 0 R null null null 218 0 R null null null 219 0 R null /Lang (EN-US) This material may not be published, broadcast, rewritten, or redistributed. Founded in 2003, Theranos is an established company that loves to hire graduates from Pima Medical Institute, with 15.9% of its employees having attended Pima Medical Institute. /P 8 0 R /K 177 0 R 74 0 obj The indictment further alleges that Holmes and Balwani knew that many of their representations about the analyzer were false. /Type /Page While some are vague affirmations, others can sharpen employees' minds and give them a sense of identity and belonging. 92 0 obj /Pg 250 0 R /S /LBody /P 8 0 R >> The . /S /P endobj /Lang (EN-US) /Lang (EN-US) /Pg 251 0 R >> /S /LBody >> << /K [95 0 R 96 0 R 97 0 R 98 0 R 99 0 R 100 0 R 101 0 R 102 0 R 103 0 R 104 0 R] /P 293 0 R /Lang (EN-US) 367 0 obj /Rotate 0 /K 133 0 R << 3553. /S /LI >> /Author () /P 341 0 R /Tabs /S - Sep 15, 2021 3:40 pm UTC. endobj Indication(s) for use: Same as the intended use 3. /K [374 0 R 375 0 R 376 0 R 377 0 R 378 0 R 379 0 R] /P 363 0 R But in February, the pair had a number of charges dropped, excluding wire fraud. >> 18 [null null 209 0 R null null null 210 0 R null null null /S /L << << /S /LI Elizabeth Holmes finished testifying in wire fraud trial. << >> /Pg 235 0 R << 148 0 obj /Pg 235 0 R >> /K 16 /P 54 0 R Forbes has since . /Annots [] /S /LBody << 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. endobj >> /K 3 endobj /CropBox [0 0 612 792] 27 0 obj << /Pg 255 0 R /K 196 0 R /Type /Page 70 0 obj /S /P Theranos's mission statement is "Our mission is to make actionable information accessible to everyone at the time it matters". 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. << Mutual Fund and ETF data provided byRefinitiv Lipper. /Pg 256 0 R << << endobj 364 0 R 365 0 R 366 0 R 367 0 R] /Annots [] << /S /LI /CropBox [0 0 612 792] /S /P /P 50 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. /P 262 0 R /P 317 0 R /P 8 0 R Holmes said she was inspired to start the company in response to her fear of needles. /P 380 0 R /K 10 /S /LBody << /P 8 0 R >> >> /S /P endobj 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. >> << /Count 5 null null 152 0 R null null] /P 55 0 R >> /K 10 endstream /S /LBody << 137 0 obj 228 0 obj >> /S /L endobj /P 55 0 R 205 0 obj << << 222 0 obj /Lang (EN-US) /StructParents 1 << 8 [null null 152 0 R null null null 153 0 R null null null 151 0 obj 331 0 obj endobj /S /LI /P 323 0 R << << 165 0 obj 340 0 obj << /K 6 << endobj /S /P /Type /Pages /K 2 >> /Resources 440 0 R 56 0 obj /S /LI 3480 endobj endobj endobj << 109 0 obj << /P 364 0 R The engrossing optimism that this may have generated in its founder, Elizabeth Holmes, and other champions of the companys vision is understandable. 125 0 obj /K [26 397 0 R] endobj /Contents [445 0 R 446 0 R 447 0 R] /Lang (EN-US) /S /LI The defendants claimed the analyzer was able to perform a full range of clinical tests using small blood samples drawn from a finger stick. /K 33 /Contents [489 0 R 490 0 R 491 0 R] This is how Theranos's huge valuation was birthed and where a critical legal problem lies. << In addition, the defendants represented to investors that Theranos would soon dramatically increase the number of Wellness Centers within Walgreens stores when, in truth, Holmes and Balwani knew by late 2014 that Theranoss retail Walgreens rollout had stalled because of several issues, including that Walgreenss executives had concerns with Theranoss performance. /K 14 /P 8 0 R 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. 159 0 R null null null 160 0 R null null null 161 0 R null 35 0 R 36 0 R 37 0 R 38 0 R 39 0 R 40 0 R 41 0 R 42 0 R 43 0 R 44 0 R /K 26 endobj /Annots [] For many years, in Facebook's case, its mission statement was "To give people the power to share and make the world more open and connected". 215 0 obj /S /LBody /K 390 0 R << /P 340 0 R 40 0 obj 188 0 obj >> endobj endobj 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. The company spent over $150,000 surveilling her and another whistleblower. /P 330 0 R /S /P /P 350 0 R /P 50 0 R /S /LBody /Lang (EN-US) 154 0 R null null null 155 0 R null null null 156 0 R null /K 22 endobj << /S /LBody endobj /K [354 0 R 355 0 R 356 0 R 357 0 R 358 0 R 359 0 R 360 0 R 361 0 R 362 0 R 363 0 R /P 50 0 R >> << Holmes was found guilty on four felony fraud counts associated with a loss to victims of at least $120 million. /K 8 << /K 188 0 R 358 0 obj /K 32 /K 12 >> /Tabs /S << endobj /P 311 0 R /Lang (EN-US) /S /LBody There is no try', stolen from . 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 . /S /LI /Type /MCR << /Tabs /S 128 0 obj endobj 82 0 obj /Pg 256 0 R 198 0 obj >> /ModDate (D:20180314090210-07'00') 136 0 obj /Pg 250 0 R >> >> /K 6 >> /P 268 0 R Balwani, 53, of Atherton, Calif., was employed at Theranos from September of 2009 through 2016. 267 0 obj >> Attorneys Jeff Schenk, Robert S. Leach, and John C. Bostic are prosecuting the case with the assistance of Laurie Worthen and Bridget Kilkenny. endobj But Theranos shared very little about its blood-testing machine with the public or medical community. 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. 230 0 obj /Pg 249 0 R 123 0 R null null null 124 0 R null null] Holmes only canceled the trip after prosecutors contacted Holmes attorneys about the unauthorized flight, prosecutors said. According to the indictment, Holmes and Balwani used advertisements and solicitations to encourage and induce doctors and patients to use Theranoss blood testing laboratory services, even though the defendants knew Theranos was not capable of consistently producing accurate and reliable results for certain blood tests. /P 8 0 R endobj /CropBox [0 0 612 792] /K 155 0 R 10 [null null 163 0 R null null null 164 0 R null null null The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Cond Nast. /Pg 243 0 R /P 48 0 R /Annots [] /P 8 0 R /P 8 0 R /K 115 0 R endobj /P 39 0 R /Pg 238 0 R It involves a dream, a mission, a plan, a vision and quite possibly monumental corruption. /Lang (EN-US) 81 0 obj << << << /S /P /Pg 248 0 R 174 0 obj << /K 22 << /Pg 235 0 R 186 0 obj In November 2022, Holmes was sentenced to 135 months in prison for defrauding investors in the failed Silicon . /Pg 258 0 R /S /LBody /K 189 0 R /P 34 0 R /S /LBody endobj endobj /StructParents 15 356 0 obj << /P 305 0 R 192 0 obj >> << >> endobj /S /LBody Legal Statement. /Pg 244 0 R /K 156 0 R /K 6 389 0 obj 396 0 obj /Lang (EN-US) /K 14 >> An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. endobj /S /LBody endobj 246 0 obj << /K 1 /Pg 247 0 R /Type /MCR The defendants nevertheless used interstate electronic wires to purchase advertisements intended to induce individuals to purchase Theranos blood tests at Walgreens stores in California and Arizona. >> 262 0 obj >> /S /LBody >> They cite a one-way plane ticket to Mexico she booked for Jan. 26, 2022, three weeksafter her conviction onfour counts of fraud and conspiracy. /K [273 0 R 274 0 R] 126 0 obj /S /TD /Parent 5 0 R 238 0 obj The .gov means its official.Federal government websites often end in .gov or .mil. 60 0 obj << << /Lang (EN-US) 212 0 obj /P 310 0 R /Lang (EN-US) /S /LI Mission Statement. 245 0 obj /S /LI /Type /MCR Recalls, Market Withdrawals and Safety Alerts, Inspections, Compliance, Enforcement, and Criminal Investigations, June 15, 2018: Theranos Founder and Former Chief Operating Officer Charged in Alleged Wire Fraud Schemes. /Placement /Block /Pg 239 0 R /P 8 0 R /S /LBody Theranosonce valued at approximately $10 billionis no more. /K 6 endobj endobj << /Lang (EN-US) /K 165 0 R << >> /K 138 0 R 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. endobj /S /LI 170 0 obj /Pg 248 0 R << /Pg 235 0 R /Lang (EN-US) >> /S /LBody /Producer (Adobe PDF Library 15.0; modified using iText 2.1.7 by 1T3XT) ] >> << 295 0 obj /S /LI The parable of Elizabeth Holmes and her company, Theranos, is not an unfamiliar one. /Lang (EN-US) >> /Type /Page >> endobj >> /S /L 247 0 obj << endobj null null 214 0 R null null] >> /P 50 0 R 362 0 obj /Lang (EN-US) << endobj /Pg 256 0 R >> The indictment describes a number of schemes that defendants allegedly employed to mislead investors, doctors, and patients. 26 0 obj /S /LI /Pg 251 0 R /P 8 0 R 269 0 obj << The data presented on this page does not represent the view of Theranos and its employees or that of Zippia. /S /LBody /P 8 0 R /P 344 0 R 68 0 obj /Lang (EN-US) >> endobj /Lang (EN-US) /S /LI /StructParents 4 Claiming and updating your company profile on Zippia is free and easy. >> /Lang (EN-US) endobj null null 127 0 R null null 45 0 R null null 128 0 R null /K 5 By 2017, scientific and medical and technical boards were established. >> 391 0 obj Acrobat PDFMaker 18 for Word /Lang (EN-US) 77 0 obj Did you ever provide financial projections to investors? Robert Leach, an assistant US attorney,asked Yam. /Lang (EN-US) << << /P 8 0 R /MCID 2 << /K 22 /K 12 366 0 obj >> /S /L 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. /S /LBody << 97 0 obj /P 8 0 R 158 0 obj /K 14 /Pg 235 0 R /K 18 >> /Lang (EN-US) >> endobj /P 50 0 R 2 0 obj /K 160 0 R << 96 0 obj /Resources 424 0 R /S /LI /S /LBody << /K 144 0 R 90 0 obj /Tabs /S 120 0 obj >> However, any sentence following conviction would be imposed by the court after consideration of the U.S. << endobj >> endobj /Pg 235 0 R /Rotate 0 292 0 obj /P 282 0 R Theranos' mission is to make actionable health information accessible to people everywhere in the world at the time it matters, enabling early detection and intervention of disease. << 52 0 obj /K 24 endobj /Pg 235 0 R 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.