“Don’t worry about the future, we’re in good hands.”
So said former US president Bill Clinton in 2015, as he introduced Elizabeth Holmes to an adoring New York crowd.
It seemed an uncontroversial statement at the time, as he hailed the achievements of a woman who had become America’s youngest self-made female billionaire after taking Silicon Valley by storm.
A hub for the world’s biggest tech companies, the only thing more synonymous with this infamous stretch of northern California than scientific breakthroughs and innovative gadgets were the rich white men who were invariably behind them – turtleneck jumpers and smart trouser-sneaker combos in tow.
Holmes – a high school computer whizz turned Harvard dropout – was a bona fide gatecrasher, her stunning rise to the cover of Forbes magazine powered by her founding health technology firm Theranos and its rapid ascent to a peak valuation of $9bn. Look back on what it was promising to deliver, and it’s easy to see why.
Revolutionary blood tests were at the heart of its pitch, ones which could be performed at phenomenal speed with merely a small drop required – and no needles.
Holmes’s catchphrase became “change the world”, such were her assertions that the equipment her company had developed could test for dozens of diseases in one fell swoop.
She insisted it would change healthcare in the US, not just by speeding up and streamlining trips to the doctor, but by eventually rendering such visits obsolete by selling the gizmos in stores.
It took more than a decade for such claims to be exposed as the stuff of science-fiction, but Holmes’s shameless willingness to talk the talk regardless helped her become one of the darlings of Silicon Valley, raising hundreds of millions from investors and venture capitalists.
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As Theranos grew, her public image was crafted to perfection to make her the perfect face of one of America’s most exciting companies, famously adopting the aforementioned turtlenecks from her idol Steve Jobs, the late Apple founder, and speaking in a strikingly deep voice which added extra gravitas to her every word.
Fame isn’t for everyone, but for Holmes it seemed elementary.
Nothing, it seemed, could go wrong. Until it did. Big time.
How the lie was exposed
Holmes’s empire began to unravel upon the publication of a bombshell expose by The Wall Street Journal, which reported that Theranos’s technology was profoundly flawed.
The devices used to collect people’s blood, which the firm dubbed “nanotainers”, were said to be so far off the mark that Theranos had in fact been using other companies’ equipment to carry out blood tests in its laboratories.
The most distressing piece of the Journal’s report was that the company’s ex-chief scientist, Briton Ian Gibbons, had tried to take his own life after telling his wife the tech did not work. He died shortly after from liver failure.
The stories emerged just a month after Holmes had shared the stage with Bill Clinton.
As described by Sky’s Ian King when Theranos went bust in 2018, three years after the Journal’s report, key to the company keeping the wool fixed firmly over the public’s eyes until then had been an almost cult-like culture among its executives and staff, and one of extreme secrecy.
Neither are unique to Silicon Valley – some of the big tech personalties who have emerged over the years remain an odd focus of worship in some corners of the internet – but rarely have they combined to such destructive effect.
The journalist who broke the story, John Carreyrou, has since written a book on the scandal called Bad Blood, which stands to be turned into a feature film. There’s perhaps a cruel irony that it’s being produced by Apple, the company whose late co-founder was a source of such inspiration for Holmes.
Her rise and fall also inspired a hit podcast series called The Dropout, and a subsequent Hulu series of the same name starring Amanda Seyfried.
The show presents Holmes as a brave, smart, single-minded young woman determined to succeed, and she is initially easy to root for. As Apple designer Ana Arriola tells Holmes in a scene when she attempts to recruit her following the launch of the first iPhone: “Honestly, it’s just really exciting to me that you’re a young female CEO, instead of a cocky little boy in a sweatshirt.”
But Holmes’s goal of becoming a wealthy star of the biotech scene quickly overcomes all other instincts – including a willingness to tell the truth.
It’s a trait that left some staff feeling deeply uneasy, not just Gibbons and Arriola, who describes her time at Theranos on her LinkedIn page as “altruism through corrupt unethical science-fiction”.
How a life unravelled
Carreyrou’s revelations, which Holmes has admitted trying to silence, sparked investigations by medical and financial regulators in the US. In a development which would once have been unthinkable, the now 34-year-old was facing criminal charges in 2018.
Among those defrauded investors were the likes of Rupert Murdoch and the American pharmacy giant Walgreens, while similarly big names had been attracted to Theranos’s board of directors.
Among them were former secretaries of state Henry Kissinger and George Shultz, and an ex-director of the US Centers for Disease Control.
All of them had been hoodwinked by Holmes, who had founded Theranos aged just 18 and quickly learned how to tell her backers exactly what they wanted – and she needed them – to hear.
As Eric Jackson, a startup founder and author of The PayPal Wars, put it to Sky News: “There is almost endemic to the system a need to, I don’t want to say exaggerate, but to tell a narrative that’s compelling to investors. At a certain point hype does have to be in line with credibility, if not you’re in an instance of good old-fashioned fraud.”
Whether it was a matter of delusion, falling victim to the treacherous “fake it ’til you make it” culture that permeates American startups, or something more sinister, Holmes maintained during her trial that she initially believed her company’s purportedly revolutionary blood tests were real.
“I wanted to convey the impact the company could make for people and for health care,” she told the court of her meetings with investors.
To prosecutors, such assertions were the consequence of a woman who was “out of time and out of money”.
Having launched her company by repurposing family funds meant for her Harvard degree, taking it mainstream meant doing whatever it took to attract her big time investors and venture capitalists.
The once-enamoured former US secretary of defence Jim Mattis, who joined the company board, told the trial: “There just came a point when I didn’t know what to believe about Theranos any more.”
‘She chose lies when we needed truth’
Holmes’s sentencing on Friday comes after she was convicted of fraud earlier this year, her years-long scam having failed to move the jury as it had done her backers.
After a case which gripped the world, just as her rise to fame had done, US federal prosecutors want the judge to jail her for 15 years, a term considered appropriate for “one of the most substantial white collar offences Silicon Valley or any other district has seen”.
Balwani has been left waiting until next month for his sentencing, having also been convicted of multiple fraud counts during a separate trial.
In a 46-page brief last week, assistant US attorney Robert S Leach wrote of Holmes: “She repeatedly chose lies, hype, and the prospect of billions of dollars over patient safety and fair dealing with investors.
“Elizabeth Holmes’ crimes were not failing, they were lying – lying in the most serious context, where everyone needed her to tell the truth.”
A counter document from Holmes’s attorneys, totalling 82 pages, insisted her reputation had been permanently and unfairly destroyed, given it had turned her into a “caricature to be mocked and vilified”.
They are appealing for a sentence of no more than 18 months.
More than 130 friends, family, former investors and employees have also submitted letters to the judge, Edward Davila of San Jose, California, to appeal for leniency.
Senator Cory Booker used his to hail Holmes, still only 38, as someone who “can, despite mistakes, make the world a better place”.
Whether that’s true or not, she won’t be able to from behind bars.
Los Angeles County Fire chief Anthony Marrone estimated that 1,000 homes and businesses have burned in the Palisades fire, the largest of the blazes in the south of the city, alone and that 100 more have been destroyed in the Eaton fire.
A preliminary review from insurance analysts at JP Morgan estimated that losses from the fires could top $10bn (£8.1bn), Sky News’ US partner network NBC News reported.
Here is everything we know about the blazes, in what fire chiefs have called a “tragic” chapter for the city.
Where are the fires, and how big are they?
There are currently five major fires raging across LA.
Here is a list of how big they are and how “contained” they are – referring to what degree the fire department has them under control.
Palisades fire
A bush fire started the blaze in Pacific Palisades, a Los Angeles County neighbourhood east of Malibu, on Tuesday morning.
By Wednesday afternoon, it had grown to more than 15,000 acres, according to the California Department of Forestry and Fire Protection.
Currently, it is covering at least 17,234 acres and is 0% contained by firefighters.
Eaton fire
The Eaton fire ignited Tuesday night near a canyon in the sprawling national forest lands north of downtown LA and had exploded to more than 10,000 acres by Wednesday, according to the US Forest Service.
Currently, it covers at least 10,600 acres and is 0% contained.
Hurst fire
Also on Tuesday night a fire broke out in Sylmar, a suburban neighbourhood north of San Fernando, after a brush fire.
It quickly grew to 500 acres, and currently covers 855 acres. It is 10% contained.
Lidia fire
The Lidia fire broke out near the community of Acton in a region between the Sierra Pelona and San Gabriel mountains.
Currently, at least 348 acres are affected by the blaze. It is 40% contained.
Sunset fire
The Sunset fire was sparked in the Hollywood Hills of LA, near Runyon Canyon, shortly before 6pm local time on Wednesday, prompting mandatory evacuations.
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Wildfires burn through Hollywood Hills
The blaze currently covers 43 acres and is 0% contained.
The Woodley fire in Sepulveda Basin was “under control” before it grew beyond 30 acres, while a blaze that engulfed Hollywood’s Studio City has now been extinguished, with no casualties.
Why is this happening in January – and when is wildfire season?
The typical wildfire season in the US usually kicks off mid-year, around May.
Wind speeds of up to 100mph work to spread the flames and coupled with a lack of humidity in the air, and patches of dry vegetation, the ground is much more flammable.
These winds create an “atmospheric blow-dryer” effect that will “dry things out even further”, Daniel Swain, a climate scientist at University of California, Los Angeles (UCLA), said.
The longer the extreme wind persists, the drier the vegetation will become, he said.
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How fast did the wildfires spread?
California governor Gavin Newsom said fire season has become “year-round in the state of California” despite the state not “traditionally” seeing fires at this time of year – apparently alluding to the impact of climate change.
Why are firefighters running out of water?
The demanding nature of the fires has led to reports that fire hydrants across the city have gone dry.
Wildfire attorney Ari Friedman, a partner and trial attorney at the Los Angeles-based law firm Wisner Baum, put this down to the increased demand simply overwhelming the supply.
But, he said, this “doesn’t immediately point to an equipment or water line failure as a lawyer might think of it”.
Mr Friedman added that the Palisades area, the site of the biggest fire, is served by water tanks because of the area’s high elevation.
Which celebrities have been impacted?
Hollywood celebrities are among the thousands of people who have been evacuated, while some have said they have lost their homes completely due to the fires.
The likes of Paris Hilton and actor Billy Crystal both described the anguish of losing the homes they raised their children in, with the socialite saying she was “heartbroken beyond words” to see her Malibu home “burn to the ground on live TV”.
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Actor tells Sky News of wildfires ‘panic’
Oscar-winning songwriter Diane Warren said she had also lost her home of 30 years in the fires, while The Hills stars Spencer Pratt and Heidi Montag also confirmed they had lost their home in the fires.
American presenter and actress Ricki Lake posted on Instagram to say she had lost her “dream home”, the same place she and her husband got married three years ago.
Sky News’ US correspondent Martha Kelner reported that Tom Hanks, Ben Affleck and Reese Witherspoon were all evacuated as wildfires continued to spread in the Pacific Palisades suburb of LA – an area known to be home to billionaires and A-listers.
The havoc caused by the fires has also led to the cancellation of several key dates in the awards season calendar.
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Stephanie Pratt: ‘I don’t know if my house is there’
The annual Critics Choice Awards ceremony was due to take place this weekend, but has been postponed by two weeks, to 26 January, “due to the catastrophic fires”, organisers said in a statement.
Production on several television programmes, including America’s Got Talent, Loot, Ted, Suits: LA, Happy’s Place and Hacks, is also at a standstill.
What have Trump and Biden said?
The White House said on Wednesday that President Joe Biden approved a major disaster declaration for California that will clear the way for federal funds and resources to be accessed in recovery efforts.
A statement said the president is “focused on mobilising life-saving and life-sustaining resources across the region,” and that he is “praying for those who lost loved ones, had property damaged, were injured, and for everyone affected by this and other devastating fires in the area”.
He has also cancelled his coming trip to Italy to deal with the wildfires.
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Trump blames governor for wildfires
Meanwhile, president-elect Donald Trump took aim at California’s governor Mr Newsom, repeating claims that firefighters did not have enough water in their hydrants to tackle the blaze.
“It’s a mistake of the governor, and you can say the administration,” he said on Wednesday evening.
“They don’t have any water. They didn’t have water in the fire hydrants. The governor has not done a good job.”
When will the fire weather end?
The winds that have been fuelling the blazes are beginning to drop, but dangerous conditions are expected to persist through until at least Friday, NBC said.
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Climate scientist Daniel Swain said some of the driest vegetation will come after the strongest winds have died down, warning: “So the reality is that there’s going to be a very long period of high fire risk.”
A warning for high wind remains in place for parts of greater Los Angeles, including the Malibu coast and the Santa Monica Mountains, according to the National Weather Service.
The forecaster suggests wind speeds could reach up to 60 mph.
Red flag warnings – which are issued by the National Weather Service to warn the public and authorities of imminent weather conditions that may result in extreme fire – are also set to remain in place until at least 6pm local time on Friday.
Humidity levels are expected to stay low, and they could dip into single digits in some areas into Friday.
A real-life drama is unfolding just outside Hollywood. Ferocious wildfires have ballooned at an “alarming speed”, in just a matter of hours. Why?
What caused the California wildfires?
There are currently three wildfires torching southern California. The causes of all three are still being investigated.
The majority (85%) of all forest fires across the United States are started by humans, either deliberately or accidentally, according to the US Forest Service.
But there is a difference between what ignites a wildfire and what allows it to spread.
However these fires were sparked, other factors have fuelled them, making them spread quickly and leaving people less time to prepare or flee.
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LA residents face ‘long and scary night ahead’
What are Santa Ana winds?
So-called Santa Ana winds are extreme, dry winds that are common in LA in colder winter months.
The California Department of Forestry and Fire Protection warned strong Santa Ana winds and low humidity are whipping up “extreme wildfire risks”.
Winds have already topped 60mph and could reach 100mph in mountains and foothills – including in areas that have barely had any rain for months.
It has been too windy to launch firefighting aircraft, further hampering efforts to tackle the blazes.
These north-easterly winds blow from the interior of Southern California towards the coast, picking up speed as they squeeze through mountain ranges that border the urban area around the coast.
They blow in the opposite direction to the normal onshore flow that carries moist air from the Pacific Ocean into the area.
The lack of humidity in the air parches vegetation, making it more flammable once a fire is started.
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Wildfires spread as state of emergency declared
The ‘atmospheric blow-dryer’ effect
The winds create an “atmospheric blow-dryer” effect that will “dry things out even further”, said Daniel Swain, a climate scientist at University of California, Los Angeles (UCLA).
The longer the extreme wind persists, the drier the vegetation will become, he said.
“So some of the strongest winds will be at the beginning of the event, but some of the driest vegetation will actually come at the end, and so the reality is that there’s going to be a very long period of high fire risk.”
What role has climate change played?
California governor Gavin Newsom said fire season has become “year-round in the state of California” despite the state not “traditionally” seeing fires at this time of year – apparently alluding to the impact of climate change.
Scientists will need time to assess the role of climate change in these fires, which could range from drying out the land to actually decreasing wind speeds.
But broadly we know that climate change is increasing the hot, dry weather in the US that parches vegetation, thereby creating the fuel for wildfires – that’s according to scientists at World Weather Attribution.
But human activities, such as forest management and ignition sources, are also important factors that dictate how a fire spreads, WWA said.
Southern California has experienced a particularly hot summer, followed by almost no rain during what should be the wet season, said Professor Alex Hall, also from UCLA.
“And all of this comes on the heels of two very rainy years, which means there is plenty of fuel for potential wildfires.
“These intense winds have the potential to turn a small spark into a conflagration that eats up thousands of acres with alarming speed – a dynamic that is only intensifying with the warmer temperatures of a changing climate.”
The flames from a fire that broke out yesterday evening near a nature reserve in the inland foothills northeast of LA spread so quickly that staff at a care home had to push residents in wheelchairs and hospital beds down the street to a car park.
A billowing cloud of black smoke loomed over the main shopping street with its fancy restaurants and designer shops, threatening to destroy what many here consider to be their slice of paradise.
It is a reminder of the destructive power of this sort of weather.
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Martha Kelner reports from Pacific Palisades
Reza, a lifelong resident of Pacific Palisades, was evacuating with what belongings he could fit in his SUV.
“This is surreal, this is unbelievable,” he said.
“I’ve lived here all my life but this is like nothing I’ve ever seen before. This is the worst of the worst.
“I’ve never seen it with these winds, we just keep praying that the direction changes. But if the direction changes it’s to the detriment of somebody else, that’s the horrible part about it all.”
January is not normally wildfire season, but these are not ordinary circumstances, the blazes being propelled by the strongest winds in southern California for more than a decade, fuelled by drought conditions.
Authorities are warning that the winds will grow stronger overnight, meaning that conditions will likely worsen before they get better.
Police and the fire department went door to door, urging people to evacuate or risk losing their lives.
On the main road out of town, there was gridlock traffic, with some abandoning their cars to flee on foot.
On Mount Holyoake Avenue, Liz Lerner, an 84-year-old with congestive heart failure, was on her driveway and visibly panicked.
“I don’t drive, and I’m by myself,” she said.
“I have no relatives, I’m 100% alone and I don’t know what to do. My father built this house in 1949, this is my family home and this is the end. I’ve never seen anything like this.”
Around the corner, another man was hosing down his multi-million dollar home in a bid to save his property from the fire bounding towards it from a nearby canyon.
“I can’t decide whether to evacuate or stay and carry on hosing down my house,” he said.
“It’s hard to know which way the flames are heading.”
Other blazes were breaking out across LA with firefighting planes grounded because of winds which are growing stronger by the hour.
More homes, neighbourhoods and lives are under threat from this perfect and petrifying storm.