How did Elizabeth Holmes and her partner defraud the public? Also, do you think any members on the board knew of her actions before she was caught?
Theranos Hero The SEC charges Theranos Inc., and its Founder and CEO Elizabeth Holmes, with Fraud MARCH 2018 - The SEC charges Theranos Inc., and its Founder and CEO Elizabeth Holmes, with fraud Money lost: $1 billion Duration of fraud: Estimated 8 years After a meteoric rise in fame, one of Silicon Valley's darlings fell hard and fast. By the mid- 2010s, Elizabeth Holmes was a familiar face on magazine covers and TV screens. She was often hailed as a visionary for founding her blood-testing company, Theranos Inc. In October often hailed as a visionary for founding her blood-testing company, Theranos Inc. In October 2015, Inc. magazine called Holmes "the next Steve Jobs" on its cover and T MAGAZINE, The New York Times style publication, wrote, It's hard to overestimate the potential benefit of what Elizabeth Holmes has developed with her tech company Theranos." The Rise and Fall of Theranos . 2003: Elizabeth Holmes drops out of college to start Theranos. July 2010: Theranos tells the SEC it has raised $45 million. 2014: Holmes is profiled in major media as a visionary. Investors value the company at more than $9 billion. April 2014: Whistleblower Tyler Shultz emails Holmes to complain that Theranos had doctored research. July 2015: FDA approves Theranos' test to detect if someone has been infected with herpes simplex virus 1. October 2015: The Wall Street Journal publishes an article questioning Theranos' technology. March 2016: Federal regulators say Theranos is plagued by quality-control problems. July 2016: Federal regulators sanction Theranos and ban Holmes from owning, operating or directing a medical lab for two years. October 2016: Theranos closes clinical labs and wellness centers, and lays off 40 percent of its employees. January 2017: Theranos closes its last blood-testing location as WSJ reports it failed a second lab inspection. March 2018: The SEC charges Holmes and Theranos' former president with fraud. June 2018: Holmes steps down as Theranos CEO. . . September 2018: Theranos announces to shareholders that the company will cease September 2018: Theranos announces to shareholders that the company will cease operations and formally dissolve. However, around the same time, cracks began to appear in the facade of the seeming miracle company. Before the adoring profiles began in earnest, Theranos employee Tyler Shultz emailed Holmes in 2014 to allege that Theranos had doctored research and had quality-control issues. Shultz blew the whistle to a state regulator who quietly started investigating his, and other employees' claims. Starting in March 2016, when federal regulators said Theranos was plagued by quality-control problems, the company, and Holmes' reputation, went into a free-fall. After failing multiple lab inspections and laying off the majority of its employees, the fortunes of Holmes and Theranos continued to decline when, in March 2018, the U.S. Securities and Exchange Commission (SEC) announced that Theranos, Holmes and former CEO and President Ramesh Sunny" Balwani had been charged with a massive civil securities fraud. The charges alleged that Holmes and Balwani made numerous false and misleading statements while raising more than $700 million from private investors. In June, a federal grand jury indicted Holmes and Balwani on charges of wire fraud and conspiracy to commit wire fraud for their roles in separate schemes: one to defraud investors and one to defraud doctors and patients. In September, Theranos shut down for good after reaching an agreement to hand over its patents to its most important creditor, Fortress Investment Group. It is estimated that investors lost nearly $1 billion. Theranos Hero The SEC charges Theranos Inc., and its Founder and CEO Elizabeth Holmes, with Fraud MARCH 2018 - The SEC charges Theranos Inc., and its Founder and CEO Elizabeth Holmes, with fraud Money lost: $1 billion Duration of fraud: Estimated 8 years After a meteoric rise in fame, one of Silicon Valley's darlings fell hard and fast. By the mid- 2010s, Elizabeth Holmes was a familiar face on magazine covers and TV screens. She was often hailed as a visionary for founding her blood-testing company, Theranos Inc. In October often hailed as a visionary for founding her blood-testing company, Theranos Inc. In October 2015, Inc. magazine called Holmes "the next Steve Jobs" on its cover and T MAGAZINE, The New York Times style publication, wrote, It's hard to overestimate the potential benefit of what Elizabeth Holmes has developed with her tech company Theranos." The Rise and Fall of Theranos . 2003: Elizabeth Holmes drops out of college to start Theranos. July 2010: Theranos tells the SEC it has raised $45 million. 2014: Holmes is profiled in major media as a visionary. Investors value the company at more than $9 billion. April 2014: Whistleblower Tyler Shultz emails Holmes to complain that Theranos had doctored research. July 2015: FDA approves Theranos' test to detect if someone has been infected with herpes simplex virus 1. October 2015: The Wall Street Journal publishes an article questioning Theranos' technology. March 2016: Federal regulators say Theranos is plagued by quality-control problems. July 2016: Federal regulators sanction Theranos and ban Holmes from owning, operating or directing a medical lab for two years. October 2016: Theranos closes clinical labs and wellness centers, and lays off 40 percent of its employees. January 2017: Theranos closes its last blood-testing location as WSJ reports it failed a second lab inspection. March 2018: The SEC charges Holmes and Theranos' former president with fraud. June 2018: Holmes steps down as Theranos CEO. . . September 2018: Theranos announces to shareholders that the company will cease September 2018: Theranos announces to shareholders that the company will cease operations and formally dissolve. However, around the same time, cracks began to appear in the facade of the seeming miracle company. Before the adoring profiles began in earnest, Theranos employee Tyler Shultz emailed Holmes in 2014 to allege that Theranos had doctored research and had quality-control issues. Shultz blew the whistle to a state regulator who quietly started investigating his, and other employees' claims. Starting in March 2016, when federal regulators said Theranos was plagued by quality-control problems, the company, and Holmes' reputation, went into a free-fall. After failing multiple lab inspections and laying off the majority of its employees, the fortunes of Holmes and Theranos continued to decline when, in March 2018, the U.S. Securities and Exchange Commission (SEC) announced that Theranos, Holmes and former CEO and President Ramesh Sunny" Balwani had been charged with a massive civil securities fraud. The charges alleged that Holmes and Balwani made numerous false and misleading statements while raising more than $700 million from private investors. In June, a federal grand jury indicted Holmes and Balwani on charges of wire fraud and conspiracy to commit wire fraud for their roles in separate schemes: one to defraud investors and one to defraud doctors and patients. In September, Theranos shut down for good after reaching an agreement to hand over its patents to its most important creditor, Fortress Investment Group. It is estimated that investors lost nearly $1 billion
