/K [32 382 0 R] /Pg 237 0 R 298 0 obj /Lang (EN-US) /K 193 0 R << 74 0 obj 6 [null null 143 0 R null null null 144 0 R null null null /Lang (EN-US) << /Resources 500 0 R However, any sentence following conviction would be imposed by the court after consideration of the U.S. 364 0 obj 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. 83 0 obj /P 309 0 R /P 278 0 R /Lang (EN-US) /Pg 256 0 R endobj /K 184 0 R Theranos is a consumer healthcare technology company. 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. endobj /Lang (EN-US) endobj 346 0 obj 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. It claims its technology can work with just a finger prick. << << /K 2 /Lang (EN-US) /K 51 << << /K 118 0 R /S /LBody Theranos is a private health care and life sciences company with the stated mission to revolutionize medical laboratory testing through allegedly innovative methods for drawing blood, testing blood, and interpreting the resulting patient data. /S /LI /K 260 0 R endobj The national average salary for a Theranos employee in the United States is $44,094 per year. /K 166 0 R /Annots [] /K 6 /Lang (EN-US) 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 . /K 149 0 R . endobj << /P 8 0 R /Contents [457 0 R 458 0 R 459 0 R] endobj /S /LBody /Lang (EN-US) It then allegedly used those articles to generate financial interest. Mr. Balwani's lawyer started his opening statement by deflecting blame onto Ms. Holmes, who was the chief executive of Theranos. /P 8 0 R endobj /S /P >> endobj While some are vague affirmations, others can sharpen employees' minds and give them a sense of identity and belonging. /K 275 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. /S /LI << >> << << 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 >> /Lang (EN-US) << /Rotate 0 >> endobj << 92 0 obj /S /LI << /P 363 0 R /P 310 0 R endobj /Lang (EN-US) /S /LBody /Type /Pages null 114 0 R null] /Tabs /S /Lang (EN-US) << >> >> /Rotate 0 /MCID 2 /Lang (EN-US) /P 268 0 R endobj 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 /P 40 0 R endobj /K 14 /Pg 240 0 R /SourceModified (D:20180314151216) >> /S /LI >> /Creator (Acrobat PDFMaker 18 for Word) /S /LI Washington, DC. 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. /Lang (EN-US) /Lang (EN-US) /K 6 /P 8 0 R /S /L /P 8 0 R /Pg 235 0 R /S /LBody /Pg 257 0 R /K 191 0 R /K 141 0 R According to the indictment, the defendants also allegedly made numerous misrepresentations to potential investors about Theranoss financial condition and its future prospects. << /S /P 1343. 305 0 obj /Lang (EN-US) /P 51 0 R THERANOS FOUNDER ELIZABETH HOLMES TO FACE TRIAL SEPARATE FROM EX-LOVER. /Annots [] /Contents [441 0 R 442 0 R 443 0 R] As years went by, whenever employees or experts raised warnings . /CropBox [0 0 612 792] /Parent 13 0 R /Pg 235 0 R 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 /CropBox [0 0 612 792] >> 295 0 obj /S /P << endobj 4 0 obj /K 0 /Pg 247 0 R >> /S /LI /Pg 241 0 R /P 8 0 R 43 0 obj 123 0 obj /S /LI 57 0 R 58 0 R null null 223 0 R null null null 224 0 R null 25 0 obj /Pg 255 0 R << << endobj 174 0 obj >> /Lang (EN-US) 139 0 R null null null 140 0 R null null null 141 0 R null /K 6 /Tabs /S /K 122 0 R /K 10 /Pg 257 0 R /K 4 << /CropBox [0 0 612 792] It's unclear whether Theranos' rise and fall will turn out to be a dazzling mirage of "would-be" business . /O /Layout >> endobj >> endobj 256 0 obj null null null null 168 0 R null null null 169 0 R null /Pg 245 0 R 102 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. 287 0 obj endobj endobj /K 8 /P 55 0 R Theranos is a now-defunct healthcare technology startup founded by disgraced Stanford drop-out Elizabeth Holmes . In fact, Yam relied heavily on Holmes for financial projections. 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. /Contents [477 0 R 478 0 R 479 0 R] 1. << << << /K 4 246 0 obj . 1349, and nine counts of wire fraud, in violation of 18 U.S.C. endobj endobj /P 299 0 R /P 50 0 R 162 0 obj Help us make this company more transparent. /Rotate 0 /K 175 0 R >> >> << /Lang (EN-US) << /S /P /P 51 0 R null 24 0 R 25 0 R 26 0 R 27 0 R 28 0 R 29 0 R 30 0 R 31 0 R 32 0 R /Annots [] /P 325 0 R >> /Parent 14 0 R /K 212 0 R 46 0 obj 2 [null null 119 0 R null null null 120 0 R null null 41 0 R /S /LI endobj 230 0 obj /S /L << Read our affiliate link policy. /K 18 /K 2 endobj /Pg 257 0 R /P 8 0 R << >> A sign outside of the headquarters of Theranos in Palo Alto, California on January 24, 2016. >> << /P 381 0 R >> 90 0 obj endobj endobj /Lang (EN-US) /BBox [79.9440002441 274.9559936523 453.9599914551 398.8439941406] When Yam was working with an analytics firm to price stock options, she asked Holmes for some key financial forecasts, including projected revenue, because the CEO had the best information. During that process, Yam had emailed Holmes asking her how much revenue she was anticipating. /K 22 363 0 obj /P 51 0 R 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. /K 25 << /P 312 0 R In part, according to the report, Theranos had neglected to use the device it marketed as the "lynchpin of its strategy," called the Edison, for the majority of the tests conducted. 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 /Pg 238 0 R 202 0 obj >> >> >> /Count 5 /K 12 endobj /P 48 0 R Elizabeth Holmes is the founder and former CEO of Theranos (2003-2018), a company that created and distributed blood testing devices. /Lang (EN-US) /P 51 0 R /Lang (EN-US) /P 8 0 R 42 0 obj 362 0 obj /Pg 248 0 R >> >> /S /LBody /S /LBody << 11 0 obj >> << /Rotate 0 /Pg 240 0 R /K 228 0 R << /Pg 238 0 R /Pg 253 0 R /K 12 /Pg 235 0 R endobj /K 22 /Pg 253 0 R The Securities and Exchange Commission also brought civil fraud charges against Holmes and Balwani. /Rotate 0 >> /Parent 5 0 R /Pg 255 0 R /Pg 245 0 R 124 0 obj << The company's stated mission was to "revolutionize medical laboratory testing," according to the Department of Justice. >> >> >> /K 393 0 R /StructParents 12 /Pg 249 0 R /Lang (EN-US) /S /LBody << 51 0 obj << << 300 0 obj Forbes has since . /Rotate 0 /Lang (EN-US) /K 17 /Pg 235 0 R According to The Associated Press, the Journals investigation marked the beginning of the end of Theranos. /Type /MCR /MediaBox [0 0 612 792] /Contents [413 0 R 414 0 R 415 0 R] 214 0 obj /Pg 255 0 R >> << /S /LI << >> The FDA would like to extend our thanks to our federal law enforcement partners for sending a strong message to Theranos executives and others that these types of actions will not be tolerated, said Catherine A. Hermsen, Acting Director, FDA Office of Criminal Investigations. /P 8 0 R /K 230 0 R endobj 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. WIRED Media Group 20 0 obj endobj endobj /CropBox [0 0 612 792] /Pg 235 0 R endobj /S /LI >> /Type /Page /Lang /MediaBox [0 0 612 792] /P 274 0 R Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. /Tabs /S endobj /Lang (EN-US) /S /LI /P 48 0 R /S /LBody endobj endobj This is why accounts about Theranos willingness to circumvent FDA rules and requirements, among other things, or legitimate due diligence requests made by potential clients is disconcerting yet unsurprising. >> << /K 26 /K 146 0 R << 265 0 obj /S /P /Pg 235 0 R /P 328 0 R /Lang (EN-US) /S /LI 134 0 obj /K 10 /Pg 235 0 R /P 8 0 R << /S /P /Rotate 0 /K 36 /K 22 << >> >> endobj But indictments said Holmes andher colleague and former romantic partner Ramesh Sunny Balwani, lied about the technology, the company's finances, and its partnerships with the Department of Defense and Walgreens. endobj endobj /Pg 235 0 R << endobj /K [262 0 R 263 0 R 264 0 R 265 0 R 266 0 R 267 0 R] /Pg 238 0 R /S /P endobj /K 18 /P 353 0 R Most of the tests that Theranos was performing for clients were done on devices made by other companies, Cheung testified. /P 51 0 R /K 14 178 0 obj /K 25 /Pg 235 0 R Theranos' mission was "to make actionable health information accessible to people everywhere in the world, at the time they most need it." It was a lofty, inspiring, and valiantly unifying purpose, . << Special conditions for use statement(s): The Theranos HSV-1 IgG Assay is for prescription use only in accordance with 21 CFR 801.109 4. endobj 244 0 obj /S /LBody /S /LBody << /Lang (EN-US) 199 0 R null null] /MarkInfo 2 0 R 151 0 obj /Lang (EN-US) /Pg 247 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. /P 285 0 R endobj >> endobj Theranos is headquartered in Palo Alto, CA. /P 8 0 R 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. 370 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. >> /Lang (EN-US) /StructParents 9 /P 39 0 R /Lang (EN-US) 34 0 obj << endobj /P 286 0 R /Pg 256 0 R /K 4 /Tabs /S /Pg 235 0 R 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 /Pg 246 0 R /Lang (EN-US) endobj << /P 371 0 R /K 2 The Seattle-based coffee giant originated in 1971 and has since become ubiquitous around the world. Using a "nanotainer" (a small device designed to draw, retain, and analyze a . 242 0 obj /P 8 0 R And at least one employee told the financial newspaper Theranos executivesdid not report test results that would have caused concerns about the machines accuracy. /P 365 0 R << /S /P Holmes, 34, of Los Altos Hills, Calif., founded Theranos in 2003. << Attorneys Jeff Schenk, Robert S. Leach, and John C. Bostic are prosecuting the case with the assistance of Laurie Worthen and Bridget Kilkenny. << /Lang (EN-US) /K 5 /K 178 0 R 104 0 obj /P 358 0 R /S /LBody /S /LI /Lang (EN-US) /P 54 0 R 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 >> Quotes displayed in real-time or delayed by at least 15 minutes. /Lang (EN-US) << endobj >> >> /P 63 0 R Easy acce View the full answer /P 8 0 R /Resources 448 0 R /S /LBody /Pg 235 0 R /MediaBox [0 0 612 792] /K 6 endobj endobj /Pg 235 0 R /Pg 235 0 R /K [380 0 R 381 0 R] /Lang (EN-US) 94 0 obj 185 0 obj << /Pg 245 0 R /Pg 256 0 R /K [273 0 R 274 0 R] Holmes was found guilty on four felony fraud counts associated with a loss to victims of at least $120 million. /Pg 258 0 R /Lang (EN-US) >> endobj >> /Contents [473 0 R 474 0 R 475 0 R] /MediaBox [0 0 612 792] << /Rotate 0 >> /StructParents 3 /StructParents 17 /K 14 And the company's downfall later became the focus of an HBO documentary, "The Inventor: Out for Blood in Silicon Valley. Getty Images. << The company grew to become a business worth billions. /Lang (EN-US) /Pg 251 0 R /Lang (EN-US) 169 0 obj All rights reserved. /P 260 0 R endobj 328 0 obj /P 293 0 R /K 209 0 R Photographer: David Paul Morris/Bloomberg *** Local Caption *** Elizabeth Holmes. /K 204 0 R Theranos is in the biotechnology industry. /S /LI 23 [83 0 R 84 0 R 85 0 R 86 0 R 87 0 R 88 0 R 89 0 R 90 0 R 91 0 R 92 0 R 154 0 R null null null 155 0 R null null null 156 0 R null Theranos's mission statement is "To facilitate the early detection and prevention of disease and empower people everywhere to live their best possible lives.". In November 2022, Holmes was sentenced to 135 months in prison for defrauding investors in the failed Silicon . /S /LI /Lang (EN-US) /Type /Pages null 233 0 R null null null 234 0 R null null 64 0 R 65 0 R 129 0 obj /Pg 240 0 R 48 0 obj by Elizabeth Holmes. /S /P /P 8 0 R >> >> /P 8 0 R /CropBox [0 0 612 792] /Pg 257 0 R uuid:f59fd1a5-0a21-408a-99c1-079770aebbbd 275 0 obj Theranos | 27,358 followers on LinkedIn. It was not only motivated blindness that may have triggered the slippery slope of unethical conduct at Theranos. << << << << /P 263 0 R 200 0 obj /MediaBox [0 0 612 792] << /K 38 << 193 0 obj << /K 2 endobj Connor Radnovich/The Chronicle. /P 356 0 R The Theranos HSV-1 IgG Assay is for use with the Theranos System which performs automated sample processing steps and result analysis. Theranos is a private health care and life sciences company with the stated mission to revolutionize medical laboratory testing through allegedly innovative methods for drawing blood, testing blood, and interpreting the resulting patient data. /Pg 235 0 R >> 322 0 obj >> null] /Pg 245 0 R 168 0 obj 209 0 obj /P 339 0 R 272 0 obj It involves a dream, a mission, a plan, a vision and quite possibly monumental corruption.
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