CA - Elizabeth Holmes (Theranos) Wire Fraud

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She is not scientifically brilliant.

I think she is just an extremely highly functioning sociopath- narcissist. She has a very keen ability to target exactly what people want to hear.

Her family is weathly and well-c0nnected in the SF Bay area venture capital arena. She first convinced a venture capital friend of the family to invest in her idea and once she had his stamp of approval, other all-to-eager investors were easy to convince with a bit of science-y talk and her " blonde female Steve Jobs persona"

She was essentially a salesperson with a very clever persona and method. The technology she was trying to sell is not new at all, but she was able to convince unsophisticated investors that it was AND that her new ideas would sidestep the real deep technical issues that make microsampling and hyperintensification not feasible on a general level for testing.

If she had been less skilled as a liar and manipulator, she would have been exposed very much earlier. But she was very calculating in only putting on her board very famous rich people with a minimum of analytical scientific research thinking. They were more skillled in political connections. Many think her original product rollout was intended for the military to buy the technology for field testing of miliary personnel worldwide, and bypass the commercial laboratory industry that has very rigorous standards that her technology could not pass. Indeed, she tried to tell Federal Laboratory Regulators that she was just marketing a new device, which bypasses many tough regulations, rather than a new technology.

She was extremely calculating in what she did. And at the end she's just a huge fraud that entangled many powerful people that don't want their names drug through the courts for being the overeager simpletons they really were.
 
I would be HIGHLY interested in her actual academic record.

And the technology for microsampling lab tests has existed for many years. In my previous life as a Peds ICU nurse, the need for critical lab tests using small samples was met with a device called iStat. Small samples loaded into a cartridge and run on a handheld device at the bedside. There were perhaps 30 actual tests that could be done depending on the sample and the cartridge. Blood gasses, glucose, lactate, electrolytes, some portions of the CBC, BUN. Each cartridge took about 0.3 mL of sample. Certainly not a drop or two.
 
I admit I'm totally obsessed in a sick fascinated kinda way with her. It's pretty obvious she's a typical narcissist, possibly sociopath, definitely expert manipulator. As a woman in the startup world, I've seen how easy it is to get people to buy into your idea/product with very little other than a great story, some clever marketing/spin, and a charismatic founder. I pitched at a Startup Competition, and was astounded at how easy it was for a startup to walk away with the $100k - no real review of financials, vetting the business idea to the target market, pretty much nothing than a good pitch and an appeal to some vague altruistic higher-level benefits. My co-founders and I just sat there with our jaws dropping after they gave out the awards. It's interesting that my company was in first place after the initial business case submission, but we didn't even make the finals after the pitches, which were 15 minutes each given to a panel of "experts" - wealthy investors, pseudo celebrities, etc.

There's a reason that they call them unicorns - those startups that are based on nothing but ideas and generate tons of money. Her deep voice affectation, which was her bid to be taken seriously which as a women facing the male-dominated and good young boy culture of tech, I can understand. The rest, not so much. It's clear that from early one she believed that she was a special kind of genius, and that she shouldn't be held to the same pedantic and pedestrian requirements as the rest of the world. For example, how after one chemistry (or chem eng) class she basically believed that she had a brand new idea, despite her teacher telling her not so much. In addition, that she felt that she didn't need to complete her college education and could still start a company based on a complex understanding and mastery of chemical engineering and biology without even a B.S.!

Oh, and she begged and pleaded and demanded to be let into a college class as a high school student (Chinese). And so many others - at first I admired her unshakeable belief in herself, but it became clear it was not healthy confidence but narcissistic arrogance. Anyone else would have been found out long ago, but she used a campaign of fear and power to intimidate and get rid of anyone who dared criticize. And she found another enabler/sociopath narc in Sunny Balwani who carried out the queen's orders.

It's a mind-boggling into criminal behavior of a different sort.
 
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I would be HIGHLY interested in her actual academic record.

And the technology for microsampling lab tests has existed for many years. In my previous life as a Peds ICU nurse, the need for critical lab tests using small samples was met with a device called iStat. Small samples loaded into a cartridge and run on a handheld device at the bedside. There were perhaps 30 actual tests that could be done depending on the sample and the cartridge. Blood gasses, glucose, lactate, electrolytes, some portions of the CBC, BUN. Each cartridge took about 0.3 mL of sample. Certainly not a drop or two.

The I-Stat also has significant limitations. And it most of the tests require phlebotomy of a vein, not the single drop of fingerstick blood in the Theranots mode. There are many other testing systems other than i-Stat (some are much less expensive and more reliable)

The source of the sample is CRITICAL because the real intent of lab testing is to monitor the glucose level delivered to the brain, or the calcium delivered to the heart, or the sodium delivered to the kidney. Trying to squeeze blood/plasma from a finger (or heel) stick can be a very poor representation of what is actually being delivered to these major organs.

So if the specimen is diluted with plasma, the hyperdilution of the Theranos model causes massively bad inaccurate results.

Remember, Holmes and Balwani studious avoided having to be within the regulated laboratory industry such as exists in hospitals, outpatient laboratories, physician laboratories, etc. Because they knew they could not pass the FDA and CLIA laboratory regulations.

Think of this: Holmes's intial strategy was to sell her product to the US Military to use on US service personnel all over the word. The miliary is exempt from the CLIA Laboratory regulations. So she had no problem selling this faulty testing system to be used on our precious sons, daughters, fathers, mothers, brothers, sisters, and friends in the miltary. And her greedy, ignorant Board, composed of TWO ex Secretary of StateS, the Senator who was ex-Chairman of the Senate Armed Forces Committe, a Senator-Cardiac Surgeon, and more.

It couldn't be more obvious what her initial intent was. She had no problem hyping this fake product/technology to Our Own Military and her Board went along with it without question
 
The I-Stat also has significant limitations. And it most of the tests require phlebotomy of a vein, not the single drop of fingerstick blood in the Theranots mode. There are many other testing systems other than i-Stat (some are much less expensive and more reliable)

The source of the sample is CRITICAL because the real intent of lab testing is to monitor the glucose level delivered to the brain, or the calcium delivered to the heart, or the sodium delivered to the kidney. Trying to squeeze blood/plasma from a finger (or heel) stick can be a very poor representation of what is actually being delivered to these major organs.

So if the specimen is diluted with plasma, the hyperdilution of the Theranos model causes massively bad inaccurate results.

Remember, Holmes and Balwani studious avoided having to be within the regulated laboratory industry such as exists in hospitals, outpatient laboratories, physician laboratories, etc. Because they knew they could not pass the FDA and CLIA laboratory regulations.

Think of this: Holmes's intial strategy was to sell her product to the US Military to use on US service personnel all over the word. The miliary is exempt from the CLIA Laboratory regulations. So she had no problem selling this faulty testing system to be used on our precious sons, daughters, fathers, mothers, brothers, sisters, and friends in the miltary. And her greedy, ignorant Board, composed of TWO ex Secretary of StateS, the Senator who was ex-Chairman of the Senate Armed Forces Committe, a Senator-Cardiac Surgeon, and more.

It couldn't be more obvious what her initial intent was. She had no problem hyping this fake product/technology to Our Own Military and her Board went along with it without question

Thanks for your valuable information on why her system couldn't ever likely work - something probably any one with a real completed degree in biochemistry could have figured out or would have known.

Ultimately, I don't think that this was solely about money for her - it was all about her ego, quest for fame, for differentiation and being lauded as a visionary and genius, power, perhaps too. I hope she enjoys the notoriety of her next stage in life.
 
Thanks for your valuable information on why her system couldn't ever likely work - something probably any one with a real completed degree in biochemistry could have figured out or would have known.

Ultimately, I don't think that this was solely about money for her - it was all about her ego, quest for fame, for differentiation and being lauded as a visionary and genius, power, perhaps too. I hope she enjoys the notoriety of her next stage in life.

Yes, I think the complexity of the sham and it’s ambitious plan is a reflection of a high-functioning severe personality disorder.

We see plenty of greedy people that skirt laws and have the goal of massive amounts of money. But this is really really over the top and she kept shape-shifting the company and reworking it’s Board of Trustees to fit her needs. I’m quite sure she had a superficial understanding of biochemistry and some analytical technique but was intentionally seeking to avoid open disclosure of her methods because the scientific community would easily label her a fraud.

In the later stages, under the direction of her 3rd Board of Trustees who now had some laboratory and scientific professionals on it, the company was forced to send their product and methods to a high-level complexity laboratory, and the Cleveland Clinic System accepted the challenge under the guise that they were going to “partner “ with Theranos if it was a proven technology. Word is that it didn’t take long for them to determine the data was not at all valid and they and stopped further investigations. However, their report has never been publicly disclosed and the Cleveland Clinic will not discuss the report. Likely on the advice of their attorneys.
 
The “lab” she kept touring VIP’S through was a huge red flag if you are at all familiar with laboratories

She kept showing some workrooms where techicians had tubing and equipment they would wash and hang on boards to dry. That might work if you were an industrial dairy operation, but nothing in what she claimed she was doing should have used that kind of equipment. It was a fake made to look like a non-scientist’s image of what a laboratory did.
 
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Beyond the reputable scientist who killed himself, the real whistleblower was a Medical Technogist, Tyler Schulz who was the grandson of Theranos Board member and former Secretary of State George Schulz.

His job would be required to understand and work the equipment, and follow the statistical and analytic rules that govern laboratory testing. He could see it was’t working. It wasn’t so sophisticated that it needed a PhD analytical chemist or an MD /Phd Clinical Pathologist to figure it out. The technology problems were evident to anyone who worked in a real laboratory.

And there are far more stories about this fraud and how Holmes manipulated it......
 
Thanks for your valuable information on why her system couldn't ever likely work - something probably any one with a real completed degree in biochemistry could have figured out or would have known.

Ultimately, I don't think that this was solely about money for her - it was all about her ego, quest for fame, for differentiation and being lauded as a visionary and genius, power, perhaps too. I hope she enjoys the notoriety of her next stage in life.

When the father of the man who knows Holmes was telling me about her before it was revealed as a scam, the father’s story to me was all about the money she was making.

I listened to it with interest but not as much as I have now.

I asked the father about it a couple of months ago and he glossed over it. I think because his “brilliant” son from Stanford and doing medical stuff as well was fooled.
 
Beyond the reputable scientist who killed himself, the real whistleblower was a Medical Technogist, Tyler Schulz who was the grandson of Theranos Board member and former Secretary of State George Schulz.

His job would be required to understand and work the equipment, and follow the statistical and analytic rules that govern laboratory testing. He could see it was’t working. It wasn’t so sophisticated that it needed a PhD analytical chemist or an MD /Phd Clinical Pathologist to figure it out. The technology problems were evident to anyone who worked in a real laboratory.

And there are far more stories about this fraud and how Holmes manipulated it......

Yes! The relationship between Tyler and his grandfather and his hardcore belief that his own grandson was mistaken, or lying, in favor of Elizabeth was INSANE! I mean his grandson had the credentials and understanding and yet she had her board so fooled that there was such cognitive dissonance that Schulz just could not accept that it wasn't working.

And your description of her fake lab as being more apropos for "an industrial diary operation" - HAHAHAHAHAHA!
 
Speaking of funny - this description of her had me on the floor:

"But there’s Holmes the fraudster, and then there’s Holmes herself, whose personal affect is very much “Romy White gives a TED Talk.” If that doesn't nail her...

https://jezebel.com/kate-mckinnon-will-play-elizabeth-holmes-in-new-hulu-mi-1833959719

This article, which is where the quote is from, is about Kate McKinnon playing her in a limited Hulu mini-series. She's going to be hilarious, even if it is more serious. She's perfect!
 
Elizabeth Holmes to return to court in July to set possible trial date

A federal court on Monday heard arguments over when to start the trial of former Theranos CEO Elizabeth Holmes and her former No. 2 Sunny Balwani, who are accused of defrauding investors, patients, and doctors in a blood-testing scandal that has rocked the business world and captivated the public imagination.

A judge proposed a trial start date of July 8.

Guess that won't bode well for a summer wedding.... but sure to make Evans family happy.

https://nypost.com/2019/04/06/famil...-fiance-worry-she-has-brainwashed-him-source/
 
The “lab” she kept touring VIP’S through was a huge red flag if you are at all familiar with laboratories

She kept showing some workrooms where techicians had tubing and equipment they would wash and hang on boards to dry. That might work if you were an industrial dairy operation, but nothing in what she claimed she was doing should have used that kind of equipment. It was a fake made to look like a non-scientist’s image of what a laboratory did.
I loved the account of the staged lab for the 2015 visit of VP Joe Biden.
‘Bad Blood’ Review: How One Company Scammed Silicon Valley. And How It Got Caught.
 
Disgraced Theranos founder Elizabeth Holmes has 'SECRETLY MARRIED her hotel heir fiancé' | Daily Mail Online

  • Elizabeth Holmes, 35, has apparently married her fiancé William 'Billy' Evans, 27
  • A so-called friend made the claims at a recording of the ' Sesh' podcast
  • Holmes is facing decades in jail for charges of wire fraud and conspiracy amid phony claims Theranos could diagnose illness with blood finger prick
  • The bogus blood-testing startup CEO got engaged around the start of the year
  • Evans is a wealthy heir to a hotel fortune who worked for Luminar Technologies
  • His family are reportedly worried Holmes has ‘brainwashed’ him into marriage
.........She faces 11 criminal felony charges at her trial, including wire fraud and conspiracy, stemming from allegations she covered up her company's faulty blood testing technology and swindled investors out of hundreds of million of dollars.

Holmes was set to revolutionize the medical industry with the development of Edison, a portable machine that she claimed could provide patients with a comprehensive blood test by analyzing just a single drop of blood.

But Theranos, once valued at $9 billion, went under after these claims were proven to be phony and the company was shut down by the SEC in late 2018.
 
June 22, 2019

[...]

On Friday, federal prosecutors and lawyers for Holmes and Balwani filed a joint memo in San Jose U.S. District Court, saying the prosecution did not oppose the proposal by lawyers for Holmes and Balwani to start the trial in September 2020, “or as soon thereafter as would be convenient for the court.” Prosecutors had preferred a start date in the first half of 2020, but the defense maintained that more time was needed to prepare, according to the memo.

The case’s complexity, along with the volume of information the three sides in the case must produce, argue in favor of the trial date in late 2020, according to the memo, spotted by NBC News. The parties in the case are asking the judge to reserve three months for the trial, the memo said.

Federal prosecutors allege Holmes and Balwani claimed their purportedly revolutionary “miniLab” system could use a few drops of blood from a finger-prick to quickly conduct a full range of tests, when in fact it had accuracy and reliability problems, performed limited tests, and was slower than some competing devices. Theranos’ machines had been available for patient use at Walgreens stores in Palo Alto and Arizona.

The FBI has claimed that Holmes and Balwani endangered health and lives. The two have pleaded not guilty to the criminal charges.

Theranos founder Elizabeth Holmes’ fraud trial may not start until September 2020
 
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