Elizabeth Holmes: How Theranos founder went from billionaire darling of Silicon Valley to the brink of prison
“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.
Bill Clinton and Elizabeth Holmes at the Clinton Global Initiative’s 2015 meeting in New York
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.
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.
Theranos reached a value of $9bn
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.
Silicon Valley is home to some of the biggest names in tech
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”.
Amanda Seyfried as Holmes in The Dropout: Pic Disney+
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.
She and the president of Theranos, ex-lover Romesh Balwani (who she has since accused of sexual assault), were accused of engaging “in a multi-million-dollar scheme to defraud investors, a separate scheme to defraud doctors and patients”, and each faced two counts of conspiracy to commit wire fraud and nine counts of wire fraud.
Former Theranos president Ramesh Balwani
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.”
Holmes arrives for a hearing in San Jose in 2019
‘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.
For more on science and technology, explore the future with Sky News at Big Ideas Live 2022.
Find out more and book tickets here
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.
World
Brutal murder on ‘date’ exposes robbery gang suspected of targeting dozens of women in South Africa
Thirty-year-old Olorato Mongale made sure to take all the measures necessary for a safe first date in South Africa’s biggest city, Johannesburg.
She had agreed to meet ‘John’ in the daytime. She sent her friends her phone location after leaving her house and promptly texted them “on the road” at 2.47pm.
They replied “enjoy!”, hoping she would find love.
An hour later, their friend had gone silent and her phone location was showing up in dangerous areas of the city.
A search party of seven friends set off to trace Olorato’s digital footsteps.
It’s believed Olorato’s killers were part of a gang robbing young women at gunpoint
“It didn’t make sense. Where is she? Why is she missing?” says Karabo Mokoena, as we drove to the locations involved in their search.
“Every place we went to looked dodgier and dodgier. It made me panic – I was very scared.”
After finding her bag on a pile of bricks off the side of a main road, they filed a missing person report at a police station.
“I thought there was no way we were not going to find her. We did end up finding her but not in the way we would have hoped,” says Karabo.
Olorato’s body had been dumped at the dirt entrance of a random house less than 100m from where her friends were searching into the night.
Her face was swollen and her eyes black-blue from violent impact. Her top was ripped open to expose her breasts.
Police told Sky News that her post-mortem showed signs of blunt force trauma. She was likely beaten to death.
Olorato’s body was dumped outside this gate – she was likely beaten to death
“It was like I was dreaming, seeing her body like that with those bruises and blood everywhere,” says Olorato’s mother, Keabetswe Poppy Mongale, describing the moment she had to identify her only child at the morgue.
“I don’t think what I saw will ever go away,” she adds.
“It was very painful. I don’t wish that on any parent because my beautiful little girl looked different because someone chose to do that to her.”
Olorato’s mother says the image of her daughter in the morgue will never go away
CCTV from the driveway of Olorato’s building shows the last time she was seen alive, leaving her home to meet ‘John’.
In the video, she walks towards a white Volkswagen Polo and hesitates as she reaches the left back door. John had come with a friend.
Four days after Olorato was killed, police found the car in a different province with traces of her blood splattered across the back seat.
CCTV showed Olorato walking to a car for what she thought was a date
One suspect was shot dead but the second man is still on the run
Philangenkosi Sibongokuhle Makanya – ‘John’ – was shot dead by police in KwaZulu-Natal shortly after they found the vehicle.
The second man in the car, Bongani Mthimkhulu, is still on the run.
The two men have since been identified as part of a dangerous criminal syndicate that lure young women out on dates and rob them at gunpoint.
“Within the four days, the investigating officers received 94 calls from women who were raising concerns and identifying the suspects as those they once met,” South African Police Service deputy national commissioner Lieutenant General Tebello Mosikili told Sky News.
“It was unfortunate about Olorato, but others were released after being robbed.”
Olorato’s friends say she ‘ticked all the boxes when it came to being careful’
A 24-year-old student who survived an armed robbery at the hands of Olorato’s suspected killers says she was happy to see Philangenkosi killed but she’s still scared for her life.
“As women, we are not even safe anymore – we can’t even walk freely,” she says.
“The moment you leave your house you wonder if you will make it back alive. I don’t feel comfortable walking around the street. I leave the house and then turn back.
“Even when I’m home, I still don’t feel safe and always want to keep myself locked indoors,” she says with a shaky voice – choosing to remain anonymous.
After meeting other victims of the syndicate, she was shocked to hear details of almost identical abductions.
“This other girl was surprised because we went through the exact same situation. They also approached her with the same tactic – let me take you out to lunch to get to know you – only for her to be robbed.”
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
South Africa has one of the highest femicide rates in the world – an average 15 women are killed a day, many by their intimate partners.
According to police statistics, more than 5,500 women were murdered in South Africa last year. An increase of 33.8% compared with the previous year.
“South Africa has six times the average rate of femicide – hundreds of women have already been killed since Olorato’s murder,” says Cameron Kasambala from Women for Change.
The advocacy group raises awareness of rising cases of femicide and gender-based violence across South Africa.
Campaigner Cameron Kasambala says many femicide cases take a long time to be resolved
In the hours after her murder, Olorato’s friends contacted Women for Change to share her missing poster after receiving little immediate help from the local police station.
“I think her friends were the real heroes in that moment,” says Cameron.
“Two police stations that were 10 minutes apart, one finds a body and one has a missing case, don’t make a connection for hours. It’s not the most reassuring police work. And if the friends had not come forward, how long would it have taken?
“Unfortunately, Olorato’s case is an exception. Most cases are not handled that quickly.”
Read more from Sky News:
Pictures reveal inside of sunken Bayesian superyacht
Hundreds protest against billionaire Bezos’s wedding
Olorato’s friends say she would be ‘proud to know that her name has not gone in vain’
Olorato’s friends are still contending with the violence of her death – what it means for their daily lives and how they navigate their safety as women in South Africa.
“It is difficult to process and difficult to believe. This is somebody who ticked all the boxes when it came to being careful – being meticulous, checking her surroundings and leaving clues,” says Olorato’s friend, Koketso Sejosengoe.
“It shows it can happen to anybody no matter how safe you are. It is happening to the average girl. They are being targeted. These men know what they are doing and who they are looking for.”
“In the purest sense, Olorato wanted women to be safe and wanted women to be protected,” adds Koketso.
“I think she would be very proud to know that her name has not gone in vain and that her death is standing for something – that there will be change that comes with this.”
Major heatwaves across southern Europe have left Spain, Portugal, Italy, and Greece in sweltering conditions of more than 40C (104F).
Two-thirds of Portugal was on high alert for extreme heat and risk of wildfires on Sunday, with temperatures in Lisbon expected to exceed 42C (107F).
In parts of southern Spain, temperatures are well above average, with 42C also expected in Seville and other cities.
The country’s meteorological service says June is likely to be the hottest Spain has experienced since records began.
In several Italian regions, including Lazio, Tuscany, Calabria, Puglia, and Umbria, outdoor work was banned during peak hours of sun on Sunday, with trade unions pushing for the measures to be extended and rolled out nationwide.
Twenty-one out of 27 cities were under the highest possible heat alert, including Rome, Milan, and Naples.
Read more
What’s actually happening underneath your sunburn
Greece has already been plagued by wildfires this summer, with one breaking out south of Athens on Thursday, and several on the island of Chios last Sunday.
Near Athens, authorities deployed 130 firefighters, 12 helicopters, and 12 planes, with 40 people evacuated from the highest-risk areas.
A woman was arrested on suspicion of unintentional arson after wildfires spread across brush and pastureland for three days on Chios.
Flames rise above Thymari, near Athens, after wildfires broke out on Friday. Pic: Reuters
Tourists battle scorching temperatures at the Parthenon in Greece on Friday. Pic: Reuters
Scientists link increasing frequencies of extreme weather events such as heatwaves, wildfires, and storms to climate change.
In France and Germany, at least three people died amid stormy conditions.
A ridge of high pressure above central and western Europe is driving the scorching conditions, says Sky News meteorologist Chris England.
Hotter-than-normal sea temperatures, dry land, and surface winds are also partly to blame, he added.
Tourists in Retiro Park in Madrid on Saturday. Pic: AP
Locals fan themselves in Lisbon on Saturday. Pic: AP
UK heatwave also likely
Please use Chrome browser for a more accessible video player
UK heatwaves explained
The UK is halfway through a four-day amber heat health alert, with temperatures expected to peak in the mid-30s (86F) on Tuesday.
Heat health alerts are not public weather warnings – but are instead designed to prepare health and social care bodies for the potential impact on their infrastructure and vulnerable groups.
Heatwave thresholds are likely to be met on Monday and Tuesday, which vary between 28C (82F) in the south of England and 25C (77F) across the rest of the country.
A British-Israeli soldier has been killed while fighting in Gaza, Israeli media reports said.
He was named locally as Sergeant Yisrael Natan Rosenfeld, 20, from the city of Ra’anana.
The Foreign, Commonwealth and Development Office said it is “looking into reports that an IDF soldier who died in combat in Gaza is a British national”.
The IDF soldier, who served in the 601st Combat Engineering Battalion, was killed by an explosive device on Sunday, the Times of Israel reported.
The paper said Mr Rosenfeld moved to Israel from London with his family 11 years ago.
More than 860 Israeli soldiers have been killed since Israel’s war against Hamas began on 7 October 2023, more than 400 of them during the fighting in Gaza.
The war began when the militant group launched an attack on Israel, killing 1,200 people and taking around 250 hostage.
Israel’s offensive in Gaza has devastated the enclave and killed more than 56,000 people, according to the Hamas-run health ministry, which does not differentiate between civilians and combatants in its count, but says more than half of the dead are women and children.
Read more from Sky News:
Glastonbury organiser says anti-IDF chants ‘crossed a line’
Trump says ‘very wealthy group’ has agreed to buy TikTok
It came as Donald Trump called for progress in ceasefire talks in the war between Israel and Hamas.
“MAKE THE DEAL IN GAZA. GET THE HOSTAGES BACK!!!” the US president wrote on social media on Sunday.
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
On Friday Mr Trump raised expectations by claiming there could be an agreement within the next week.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike