EXPOSED: Elizabeth Holmes Ex-CEO Of Theranos & How She Fooled The World

hey guys welcome back to my channel so in today's video I'm going to be telling you about Elizabeth Holmes who was at one point one of the most successful and upcoming people in Silicon Valley and it turns out that she was actually a huge fraud so I thought it would be interesting to look at the whole story as I'm sure some of you have heard about her but maybe you don't know exactly how this happened or the details behind it so today we're going to get into all of that but before we get started I wanted to thank today's sponsor which is audible so as you guys know I love audiobooks and I love listening to them on audible I've been using audible for way longer than they've been sponsoring me and it is truly one of my favorite things not only do I love the vast selection of audiobooks that they have but I also love their audible originals which are exclusive audio titles that are created by celebrated storytellers from all over the world as diverse as theater journalism literature and more audible makes it easy to expand your knowledge to entertain yourself to make time go by faster it's super convenient you can listen pretty much anywhere and today I wanted to recommend a fee book bad blood to you which is all about Elizabeth Holmes and their nose which is the company that we'll be talking about today a nod well has a new offer for you guys actually today they are offering a free audiobook as well as two audible originals and a 30-day free trial all you have to do is go to audible.com slash Kendall ray or text Kendall ray at to five hundred five hundred if you guys find this story interesting and you want to know more I think you guys would really like listening to bad blood for sure so again you can get that book for free at audible.com/asap texting kendall ray to 500 500 and don't forget you'll also get the two extra audible originals all right now let's get started talking about Elizabeth Holmes so Elizabeth and Holmes was born on February 3rd of 1984 in Washington DC and what's interesting about her family dynamic is on one side of the family they had a lot of engineers and on the other side of the family they had a history in the medical field so it seems like she had skills in both of those areas and just ran with both of them one thing that you should know about Elizabeth is that she was really close with her uncle and I think it was a huge driving factor and why she does what she does or at least she says that it was a big driving factor while she has created her entire company she remembers going to the beach with him she said he loved the beach but at some point he actually got diagnosed with cancer skin cancer that ended up going into his brain as well and it wasn't long before he passed away at a pretty young age he never got to see his children grow up and this really affected Elizabeth a lot at some point in her childhood Elizabeth and her family moved to Texas and Elizabeth attended a university prep school called st. John's School in Houston and during high school she was interested in computer programming and claimed that she actually started her first business selling C++ compliers which are programs that translate computer codes to Chinese universities and Elizabeth was so smart that her parents actually started having a mandarin tutor come to their house to teach her Chinese which Mandarin Chinese I wouldn't know is I don't know how to speak it but I've heard it's very very hard to learn it's a very difficult language to master and so for her to want to just do this outside of school just for fun or just to further her education or maybe she knew that this would just be vital to her future because Elizabeth started talking about being successful really really young when people asked what she wanted to do for a living she would say that she wanted to be a billionaire one day and when she was a child she even knew that she wanted to create something that would change the world like something the world really needed she really wanted to be an inventor of something and be very influential in some type of space and it seemed like medical was the most interesting to her from the beginning there's even a letter that she wrote her father where she talks about how she wanted to invent something just like him what I want out of life is to discover something new something that mankind didn't know was possible I also want to study about man in his ways life is really interesting I love being with you it's my most favorite thing in the whole world love Elizabeth and eventually she had almost mastered Mandarin Chinese so by mid high school she was already trying to get into Stanford for their summer Mandarin Chinese program and after convincing people just by speaking Chinese in front of them they eventually allowed her to get into this class and she started taking college courses in 2001 Elizabeth ended up attending Stanford full time where she studied Chemical Engineering and worked as a student researcher and lab assistant in the engineering school at Stanford and after her freshman year Elizabeth worked in a laboratory at the genome Institute of Singapore and in 2002 at the age of 18 Elizabeth met a man named Sonny while she was still in school and Sonny was a Silicon Valley technology entrepreneur and was 19 years older than her and still married to another woman at the time that they met but it wasn't long before he divorced his wife and started dating Elizabeth full-time so they dated for quite a bit and then in 2005 they ended up moving in together now one thing that we learned later on is that Sonny was not invited to join the company until 2009 but he was definitely influencing Elizabeth for way before that so Elizabeth is always full of ideas and one of her first ideas that she actually really came through with was in 2003 when she filed for a patent on a little patch that you could put on your skin which it seems like a great idea but it was supposed to deliver antibiotics into the body through the skin through a patch which that much as it sounds like a good idea it actually isn't currently possible in March of 2004 she dropped out of Stanford School of Engineering and used her tuition money to start a consumer health care technology company called real time cures Elizabeth founded the company to democratize health care so one thing that's interesting about Elizabeth is from a young young age as long as she can remember she has been terrified of needles she is very very creeped out by them and she actually describes having blood taken as torture which means I've been tortured many times because I have Hashimoto's disease and you get your blood drawn all the time doesn't really bother me but Josh literally will pass out and hates it so I understand some people cannot stand it and maybe to you it would seem like torture so Elizabeth came up with this idea she was full of them to be able to test someone's blood with only a very very very small amount of it a fraction of what current blood labs use and it wasn't just to get a little data it was supposed to get vast amounts of data with just you know a tiny drop of blood so at first she talked to her professor at Stanford about it and she tried to tell him about it several times she even brought in a bunch of his co-workers one time and after she told them about it they all told her this is impossible like this is not going to work and of course she hadn't actually invented this yet it was just an idea at the time a ton of other medical professionals actually told her the same thing that this will not work but Elizabeth refused to take no for an answer and she ended up being able to convince the Dean and advisor at the School of Engineering Channing Robertson to back her idea and support her so basically they thought that they could take a tiny amount of blood and scan it for a bunch of different things like cancer and it sounds like such a great idea is something that we may be able to have one day maybe I mean I'm not a professional I don't know if that's possible but you're like eventually anything's possible maybe but it would be really nice to be able to just get a drop of blood and find out if you have anything cancer or any other disease and it would allow us to prevent a lot of deaths because they claim that there's different from traditional blood tests would be able to detect these type of things way way in advance and so she actually created this machine and she ended up naming this machine the Edison which is really fitting because Thomas Edison was a total fraud you don't know that about him maybe I need to do like an exposed Thomas Edison but he really was a total fraud and it's really interesting that she chose that name because he was kind of a fake until you make it type guide to who had come up with things and really start pushing them before he'd actually invented them she claimed that this Edison machine could do 200 blood tests in just a few minutes and the little vessel that she used to collect the blood was called a nano Taner so in 2004 Elizabeth decided to change her company name to ethera nose which is actually a combo of therapy and diagnosis and Elizabeth rented the basement of a group college house and rented some lab space as well and amazingly Elizabeth started getting investors very quickly without actually any proof that this worked the first major investor was Tim Draper and Tim was the father of Elizabeth's childhood friend Jesse trapper who was also a Silicon Valley venture capitalist and Elizabeth was able to convinced him that the company was legit and Tim ended up writing Elizabeth a check for 1 million dollars and according to Tim Elizabeth also got support from Rupert Murdoch who is a very successful entrepreneur in the media industry as well as the walton family who are the founders of walmart and Sam's Club and she also got support from the Cox family of Cox Enterprises one of her first board members was Secretary of State George Shultz and he ended up getting her 12 big-name members on the board including former secretary of state and national security adviser Henry Kissinger and by December of 2004 Elizabeth had raised 6 million dollars for their nose and by the end of 2010 their nose had 92 million dollars in venture capital that's pretty interesting how she was able to get so many people on board with something that wasn't even created yet something that she was not able to even prove worked and she was able to trick a lot of people into a lot of money and she was able to keep this a secret that she didn't really actually know what she was doing and they weren't very successful she ran her company in a very unique way she was always in like stealth mode she was very very secretive employees were told they couldn't say certain things and she claimed that this was so no other companies would be able to get any ideas but investors found that really frustrating obviously in September of 2013 the company announced that they were going to have a partnership with Walgreens to launch these like in-store blood sample collection centers mom we really are an important part of our family because baby we really love you so much your health is really important to us the kids adore you there are no skiff cards because nothing is more important than the health of those you love and in 2014 she appeared on the cover of Forbes which was a really big deal and ink which is also a really big deal now one thing that you'll notice about her by looking at these pictures is she really likes black turtlenecks that is one thing that Elizabeth is known for her closet only contains black turtlenecks now one other person who you might know also has done this was Steve Jobs Steve Jobs was known for wearing a black turtleneck every day and he said that it this simplified his routine and Elizabeth claims that she's not copying Steve Jobs at all she claims that she has been wearing these black turtlenecks for a long time so she was a child although there are many many photos of her in there things that are not black turtlenecks so that's one thing you start to notice about Elizabeth homes is she's like a major Steve Jobs fan she is clearly inspired by him a lot of her quotes sound like him her mannerisms her style the way she goes about things the way she tries to speak there are so many comparable things and he was clearly such an icon to her in 2014 Forbes ranked her number 110 and recognized her as the world's youngest self-made female billionaire which is a pretty big deal so tons of other inspiring female engineers entrepreneurs and scientists all really looked up to Elizabeth at this point their nose was valued at nine billion worth more than four hundred million dollars in venture capital in the fall of 2014 Elizabeth moved their nose to the Stanford Research Park and the Stanford Research Park is in hills in Silicon Valley and this is where parts of really big inventions have taken place such as mainframe computers microwaves and even the International Space Station this place claims that it is a community of and for the people who seek to invent the future and many famous inventors such as Elon Musk Mark Zuckerberg and even Steve Jobs have spent time conducting research at this facility over the years one of the most popular topics you will see people discussing when it comes to Elizabeth Holmes is her voice create it possible to eliminate the tubes and tubes of blood that traditionally have to be drawn from an arm what do you dream for something employees way I thought that less people have to say goodbye to you soon to people they love I don't have many secrets Elizabeth has a very masculine voice and I don't mean to voice shame her in any way but the reason I bring this up is because many people think that this voice is actually think that she does it because it makes her more authoritative and that she commands respect with this voice I don't know if that's true I mean I can't verify that myself but there are a lot of professors and ex friends and people like that who said that her voice was not like that before by the time the company was moved to the Stanford Research Park they had hired 800 people and it was valued at almost ten billion dollars and by the end of 2014 her name appeared on 18 US patents and 66 foreign patents during 2015 she made agreements with Cleveland Clinic capital BlueCross and Ameri health caritas to start using their nose technology and in June of 2015 she even partnered with Mexican businessman Carlos Slim Helu I probably am saying that wrong to help improve blood testing in Mexico and then Elizabeth had a pretty big victory in July of 2015 their nose developed this test that was for detecting herpes and this was the first and only their nose test to be approved by the FDA so she had quite a big celebration touch this [Music] [Applause] [Music] in 2015 she was appointed as a member of the Harvard Medical School Board of fellows and was also named one of Time Magazine's most influential people in the world Elizabeth received the under 30 Dewar's award he was also named Woman of the Year by Glamour magazine and received honorary Doctor of Humane Letters degree from Pepperdine University after she delivered the commencement speech to the 2015 graduates and Forbes have listed her at one point as America's richest self-made woman in 2015 with a net worth of 4.5 billion so things were going pretty good for Elizabeth she was pretty satisfied with her future but in reality things were not actually going so well while she had raised a ton of money and got a ton of investors and got a ton of press and was included in all these lists and awards and you know she had definitely had her moment of fame but in reality her machine actually didn't work and so it was only a matter of time until the truth came out and her entire bubble burst a journalist from The Wall Street Journal named John Kerry group got a tip from a medical expert who thought that the blood testing device seemed suspicious and because of this John decided to make a secret investigation I lasted several months where he spoke to a bunch of ex employees and he was able to get a hold of company documents that further strength in this case eventually Elizabeth actually found out about the investigation though and got her lawyers involved who threatened the Wall Street Journal and they were also threatening a bunch of ex employees who were spilling the tea to Jonathan October of 2015 John decided to go ahead and reel leaves his article anyway and this article basically revealed that the blood testing devices at their nose didn't actually work that people that were getting their blood tested there were actually being tested on traditional machines and sometimes they were even going in for blood work and they would take way more than they advertised you know they said they would only need one drop but then they'd be like well for your doctor your doctor wants these like special tests so we're gonna have to do it the traditional way for you which leaves people like why am I here then and the article also claimed that the tests were just not even being run on their actual machines that they were running them some of the times just on the traditional machines so it basically exposed their nose as a giant fraud a machine that wasn't actually working which was the truth this machine was a mess it did not work it was too small it was way too much stuff being crammed into a small box it broke a log required people to actually go in and work on the machine which posed a lot of health and safety threats to the workers because they're being exposed to tons of random people's blood we are not there technologically to make that work and so thier nose would pretty much come up with the wrong data almost all of the time when you compare lab tests from a traditional lab to their noses results they are vastly different and there are even cases of people who got testing done at their nose thought they were okay and then ended up getting cancer so needless to say Elizabeth had been exposed she had been lying her way through from the beginning and she was a classic example of fake it until you make it another thing that's really weird is that Elizabeth advertised this technology as something that was totally automated and was extremely fast at producing results rather than traditional testing however some employees came out and said that there were times we would take over six hours just to set up the machine before they could even run the patient samples a lot of employees also said that their time working there was just sketched they had to sign non-disclosure agreements when they started working there which is kind of strange and they weren't even allowed to tell their friends or family what they were doing at work they were also forced to sign paperwork that said they wouldn't talk badly publicly about the company and not only that but each employee would be liable for anything bad that was said about the company everyone in the building had a key card that they had to scan as they went into each different area of the building so Sonny and Elizabeth were able to watch where everyone was at all times they even tracked all of the emails that were being sent between their employees she then appeared on the show mad money with Jim Cramer and basically said that everything that the article published was fake lately one of the most exciting privately held companies in Silicon Valley has come under fire miss Holmes welcome back to me of money it's great to be here thank you getting this kind of attention and scrutiny what do you think's going on here this is what happens when you work to change things and first they think you're crazy then they fight you and then all of a sudden you change the world in January of 2016 the Centers for Medicare and Medicaid Services did an inspection of thier nose Network California lab and they apparently discovered that there were irregularities with staff proficiency procedures and equipment CMS ended up sending out a warning letter to thier nose because of what the inspection results showed in February of 2016 if their nose announced that they would allow the Cleveland Clinic to complete a study on its technology on whether or not the results were even valid in March of 2016 a study appeared in the Journal of Clinical Investigation and it was stated that the company's blood test results were flagged outside of their normal range one point six times more often than other testing services and in March of 2016 CMS proposed that Elizabeth face a two-year ban from owning or operating a lab because the company had not fixed the problems in its California lab and as soon as the heat started um sunny ended up bailing on thier nose and he and Elizabeth ended their relationship she claims that she just fired him on the Today Show Elizabeth said that she was devastated that they did not catch and fix these issues faster and that the lab would be rebuilt and in June of 2016 Forbes released an article that claimed that the value of the company had actually dropped from ten billion to just eight hundred million a few months later in July of 2016 CMS when a and banned Elizabeth from owning operating or directing blood testing services for a period of two years and the company appealed the decision to the US Department of Health and Human Services Appeals Board and it didn't take long before Walgreens actually ended their relationship with their nose as well and closed all their in-store blood collection centers so at this point thier nose was pretty desperate and trying to save their ass any way that they could so in August of 2016 the company introduced a new robotic capillary blood testing machine called the mini lab but just like her other ideas there was no proof that this invention actually worked you can have good ideas all day in 2017 they were actually sued by the state of Arizona for conducting false labs because they had sold over 1.5 million blood tests to Arizonans citizens so by 2018 the company had pretty much tanked they had to fire a bunch of employees they were under a ton of investigation they had lawsuits at their door they were just completely going under fast they were down to two dozen employees who were later fired by the end of the year and on June 15th of 2018 a federal grand jury indicted Elizabeth and Sonny on nine counts of wire fraud and a two counts of conspiracy to commit wire fraud and after the indictment was issued Elizabeth stepped down as the CEO of thier nose but remained the chair of the board and on September fourth they made the announcement that they were going to completely shut down and the Wall Street Journal has now reported that the company is literally worthless so talk about a change of events she went from being one of the most successful women in the world to one of the biggest frauds and failures of all time as of January of 2019 the Justice Department is reviewing nearly 17 million pages of documents concerning this case and based on what they find more charges could potentially be brought against them Sonny and Elizabeth say that they are not guilty but they are facing up to 20 years in prison although Elizabeth is acting like everything's fine she's actually currently engaged to this guy named William Billy Evans who is a 27 year old inheritor to the Evans hotel group and they live in a luxury apartment in San sisqó her whereabouts have been a mystery until now I Elizabeth I'm Lisa Guerrero with Inside Edition we'd like to know if you had an opportunity to watch the documentary about you Lizbeth a lot of young women looked up to you especially in tech what would you have to say to those young women do you have any comment at all to the investors that say they lost millions of dollars because of you a lot of people think it was heartless that you were partying at Burning Man when your company was closing its doors can you set the record straight is your voice real or is it fake just recently on Monday April 22nd Elizabeth appeared in San Jose California before a status hearing and a judge has proposed that her trial will start on July 8th so it will probably start on that day or sometime around then which will be really interesting obviously we don't know the full story maybe fairness currently offers more than 200 and it's ramping up to offer more than 1000 of the most commonly ordered blood diagnostic tests all without the need for syringes does that statement correct 3 do you know I don't think it is for you and Sonny ball were never engaged in a romantic relationship yes when for a 1:30 time would you say for the majority that time for you living with his homes yes did you ever tell investors that you had a romantic relationship with the amount of lying that she did it is truly incredible that she got as far as she did it's honestly impressive and she was very very smart but Elizabeth seemed to care more about the image and the money than she really cared about actually making sure anything worked one of her employees even said that at one point she was more concerned about naming the cloud that the Edison would send the data to then actually making sure the Edison actually even worked she was definitely more concerned with the marketing and the overall style of everything and how she ran her brand and that's what it really all was about for her and I think it was really about money from a young age she wanted money and I think she wanted to change the world but she also wanted money and I think if you create something that changes the world you're naturally gonna get a lot of money so it's hard to say what her true intentions were people have varying opinions on how guilty they think Lisbeth actually is was she knowingly lying the whole time where is she almost a sociopath and the fact that she would lie and not even realize she's lying and convinced herself that these things are true that she's in such denial maybe at one point she really thought it was going to work and then it didn't but one thing's for sure is Elizabeth definitely knew that things weren't working for a long time and she went on to take people's money and to keep on lying and to soak up all these interviews and the limelight and yet none of her ideas actually worked I hope one day that they do create something like this it would be pretty nice to go in for a finger prick and find out if there's anything seriously wrong with you or if you're in the early stages of a disease I think that's pretty amazing and I have faith that one day humanity will be able to create this but Elizabeth definitely was not the one to do it it'll be interesting to see she actually goes to jail she does have wealth and privilege on her side she is very buddy-buddy with the Obama administration not that they're still in power or anything but I feel like she has a lot of people that are higher up like a lot of elites that can help her pull strings and she's obviously able to hire a really good defense team so it'll be interesting to see how this one shakes out but I really hope the law comes down on her because I find her to just be such a fraud and it's such a bad example of a successful woman to be completely built as an idea to almost be an invention herself all she really cared about was her image and how successful she was looking and if she was doing it just like Steve Jobs was without actually saying that it's just such a weird story and I'd love to know what you guys think about this let me know if you want to see more videos exposing people I definitely have quite a few in mind that I could do videos on so let me know but that's it for me today guys I hope you're having a great day and I will talk to you next time you're the only lab company that is actually really focused on leading with transparency on sports I don't have many secrets [Music] [Music]

Channel: Kendall Rae

Views: 1,708,188

Keywords: kendallraeonyt, kendallrae, kendall rae, crime, mystery, true crime, crime documentary, investigation, buzzfeed unsolved, investigative, supernatural, documentary, theranos, blood test, fraud, the dropout, theranos documentary, bad blood, hbo, silicon valley, elizabeth holmes voice, theranos scandal, theranos ceo, elizabeth holmes theranos, healthcare, news, elizabeth holmes, out for blood, out for blood hbo, walgreens, drop of blood, scandal, john carreyrou, scam, ceo, former, elizabeth, holmes

Id: RpEu1_dRiVs

Length: 27min 29sec (1649 seconds)

Published: Fri Apr 26 2019