Two former U.S. Secretaries of State, and two others who served as Secretary of Defense. A onetime Secretary of Education. Two U.S. senators. A titan of civil litigation. A Silicon Valley legend. A global media mogul. The former CEO of a leading U.S. bank.
What do all these folks have in common? They are proof that excess exuberance can be too hard to see through — even for those with great sophistication —when it comes to a supposed breakthrough in medical technology.
These prominent figures — including Henry Kissinger, George Shultz, William Perry, James Mattis, Betsy DeVos, Bill Frist, Sam Nunn, David Boies, Larry Ellison, Rupert Murdoch, and Richard Kovacevich — all were ensnared in the fraudulent Theranos blood-testing enterprise.
Elizabeth Holmes, (shown above) notorious for wearing black turtlenecks and talking in an unusually low voice, was convicted earlier this year on four fraud-related charges in Theranos’ collapse. Her gulling some of the nation’s leading lights — and costing them hundreds of millions of dollars in losses — have captured attention in:
Bad Blood: Secrets and Lies in a Silicon Valley Startup, a book by investigative journalist John Carreyrou, who broke the Theranos story in The Wall Street Journal. The book is set to be made into a feature film.
The HBO documentary The Inventor: Out for Blood in Silicon Valley, directed by Academy Award-winner Alex Gibney
And in The Dropout, Hulu’s acclaimed miniseries starring Amanda Seyfried.
These works, along with a barrage of news reports, have reminded big audiences that Holmes sold heaps of hokum for more than a dozen years before Carreyrou, in particular, asked tough questions that burst the fantasy bubble its CEO-founder created around Theranos.
Holmes, a chemical engineering student, dropped out of Stanford University to found Theranos and to pursue a vision of a compact, portable device that could quickly analyze just a few drops of blood and provide complex, extensive medical results for far less cost than commercial labs. She exploited her own story and connections, demonstrating a jaw-dropping knack for persuading older men, mostly, of her business and scientific acumen based on little or no evidence. She got rich, prominent, and powerful.
A key cause for her downfall came due to her contacts, notably with the important whistleblower in the Theranos case — Shultz’s grandson, a 22-year-old biology major. Tyler Shultz met Holmes through his grandfather and got a job at Theranos.
In his eight months there, he fast figured out that more was wrong than right. He contacted Carreyrou and federal regulators. He confronted his beloved grandfather and had a brutal family falling out that wasn’t fully repaired before Shultz’s death. Tyler and his family were saddled with onerous debt due to lawsuits filed against him by the company. Tyler, who is working on a biotech startup of his own, told NPR that he celebrated Holmes’s conviction with a champagne toast. Talk about bittersweet.
Photo / image credits: National Cancer Institute, HBO, California Institute for Regenerative Medicine, National Human Genome Research Institute, Intuitive Corp., Unsplash.