How Elizabeth Holmes sold the idea of Theranos to employees, investors: Part 1
How Elizabeth Holmes sold the idea of Theranos to employees, investors: Part 1 Female self-made billionaire in this never-before are deposition. She said cross from 12 attorney under investigation for an alleged years-long fraud running Fall From Grace for the woman who is voice to change the world terminate the tubes and tubes of blood. / technology promise to run hundreds of test from a tiny finger prick a promise. She would never fulfill this is not fake it to make it this thing didn’t work would not do all those tests, it’s a story of greed and it’s the story of incredible deception. It all started here at Stanford University, the birthplace of so many Tech icons. In Silicon Valley, people brag about is that they drop out of college Steve Jobs, dropped out of college Mark Zuckerberg Dropout of college Bill Gates dropped out of college after less than two years here. Elizabeth dropped out to another few class in chemical engineering is not necessary for what I wanted to do was she would come to name their in-house about tipping that conviction. In yourself, Elizabeth wanted nothing less than the apple of Health. Insiders say she was obsessed with Steve Jobs and that she wanted to mimic him at every turn from those signature black turtlenecks to recruiting his former head of software Lobby. Tevanian young lady, who is very driven has a really interesting idea and then she would put blood on something and then she put in the machine and then sometimes you, this part doesn’t work anymore, which was a little bit odd. But some of that you expect again from a startup that has a product – that’s not done right, but the problem wasn’t never got any better. We getting an enormous loan from a former software executive named sunny balwani. I think it was about $ 20, but Sonny, a flashy entrepreneur who drove a Porsche 911 and a black Lamborghini wasn’t just offer Lifeline. He was also joining their nose as cool did. He have any qualifications in the lab testing business. I do not or in pathology or anything like that, but he became Elizabeth’s number 2 and together they went after their biggest collaboration. Yet, with Walgreens as seen here in this, their nose, tweet theranos blood test would have been available at almost every street corner million dollar deal on the heels of that news. She assembled an All-Star Board of government heavyweights. The fame and stardom was the cover story in Fortune Magazine, the article states that there is more than 200 blood test without a syringe, but precisely how their nose accomplishes. All these amazing feats is a trade secret saw her almost once a week, either racing magazine cover or attending a Tech conference or Healthcare conference are going on TV, theranos, Elizabeth Holmes, Elizabeth home. Thank you for having me incredibly humbled this my 2014. Their nose is valued at nearly 10 billion dollars. The founders of Walmart, in best 250 million media Mogul Rupert Murdoch, 125 million and the DeVos family, including now inpatient secretary Betsy DeVos, another hundred million dollars, but for all the hype on the outside on the inside things, weren’t going as planned. Employee, like Erica, Chun we’re dealing with a product. That’S still wasn’t working at what point do you start to think something isn’t right here. I think the transition happen is when I started processing patient samples. So you basically test and it kept failing. I kept running it over and over and over and how it was handled totally blew me away. They took out datapoints so you’re you’re, saying essentially that you were cherry picking exactly information, but the thing is: is we were still processing patient patients like Sherry, a Kurt? This is the Walgreens where I had the infamous blood draw, but things took a terrifying turn when she got her results. I saw that the estradiol amount was over 300. I haul my oncologist’s office and the nurse called me back and she said I am so sorry. That’S not good, there could be a tumor growing somewhere. I will never forget that day the doctor told Sherry to go in for more tests, but this time recommended in non theranos lab was about a week later. I got the call from my doctor and he said: congratulations. Your estrogen is basically nonexistent. Tests had been off by hundreds of points. No one ever called me to apologize. No one, not okay, so many inside the walls of their nose say they were too scared to speak up, but there was one unlikely, whistle-blower willing to take the risk or research engineer named Tyler Schultz. He also happened to be the grandson of former Secretary of State George Schultz, a board member at their nose. My grandfather. She would just like 10 things that were just completely factually, not true. People can come in and do a full-service Laboratory Testing with a stick from the finger as opposed to having the tubes into taken from your arm. Can you recall any of the factually, not true things that Miss Holmes told you, the big ones are being able to run hundreds of blood test from a single drop of blood. My grandfather would go, get at their nose test done and he would have a needle in his arm single drop of blood. Then there’d be some excuse about why they needed to take a venous draw. Can, but you know, for everybody else is a finger prick. Can he continue to buy into that they weren’t even running most the test on the Thanos devices? While I was working there, we only ran 7 test on the Thanos devices and most of test on third-party machines. Did Ms homes know at the time that their nose could not do all those tests Cyrano’s devices Tyler said the results were often not accurate. Elizabeth responded by email later that evening comments and allegations are making. Then she says that she’s going to have to go through this line. Moline so will take some time before I get back to you in this, but rather than a follow-up from Elizabeth, he received this email from Sunny balwani. That Reckless comment based on absolute ignorance is so insulting to me that had any other person made these statements, we would have held them accountable in the wrongest way. The only reason I’ve taken so much time away from work to address this personally is because you are mr. Schultz, his grandson. The only email on this topic I want to see from you going forward is an apology. Instead, Davis, two weeks notice, he says he went to go meet with his grandfather at his home later that day and realize that this was a fraud and his grandfather has sided with Elizabeth Holmes and didn’t believe him. He said they’re trying to convince that you’re stupid, but they can’t do that. They can’t, however, convinced me that you’re wrong – and in this case I do believe you’re wrong, and my grandfather said that the devices were currently being used in Medevac helicopters. Did he tell you who had told him that he didn’t say who told him that, but I had a really good gas. He also said there beanies in operating rooms. I remember saying that that couldn’t possibly be true, because the devices were barely working within the walls. At their nose, Tyler eventually took his concerns to Wall Street Journal investigative reporter John Kerry Rowe. The first of many explosive articles in the Wall Street Journal. That stated, among other claims, that the isn’t using its technology for all the tests that offers, but instead was using traditional machines, but from companies like cement to run the majority of its tests. Following the article, a defiant Elizabeth appeared on Mad Money with Kramer. This is what happens when you work to change things and first they think you’re crazy. Then they fight you and then all the sudden. You change the world Elizabeth continued to deny deny deny, but when we come back under the harsh glare of a different kind of Spotlight should find it harder to avoid the mounting evidence from the defense attorney for the stay with us. Hi. Everyone George Stephanopoulos here, thanks for checking on ABC News, YouTube channel if you’d like to get more video, show, highlights and watch live event coverage click on the right over here to subscribe to our Channel and don’t download the ABC News app for breaking news alerts. Thanks for watching Holmes’ technology promised to run hundreds of tests from just a drop or two of blood, but it was a promise she would never fulfill.