UPDATE: Theranos founder Elizabeth Holmes sentenced to 11 years in jail | 60 Minutes Australia

for more than a decade Elizabeth Holmes spun the world a Despicable bloody lie she claimed to have invented a medical miracle a machine which with a tiny drop of blood could diagnose Myriad diseases her deceit fooled many wealthy investors and not only made her the darling of Silicon Valley but also a billionaire not anymore though yesterday a California Court sentenced Elizabeth Holmes to 11 years in prison for fraud [Music] it's the day Elizabeth Holmes has done almost everything to avoid is there anything that you want to say to the investors now finally silicon Valley's former pinup girl has no choice but to face her Reckoning you plan to make any statements to the judge to learn her fate for defrauding investors of 144 million US dollars [Music] four nail biting hours later the court delivers the news Elizabeth Holmes has been sentenced to 11 years in jail her crimes exposed by the courage of whistleblowers I'm very very proud of the role I've had in cooperating with the government to bring Justice in this case I think I very effectively spoke the truth and it exposed one of the most fiendish kind of plots in the history of healthcare anything you want to say Dr Adam Rose endorff was the star witness in the trial of theranos founder Elizabeth Holmes a trial which with all its twists and turns has captivated the world as former lab director of theranos he had the inside view of a company that promised a revolution in blood testing but was exposed to be a sham foreign [Applause] [Music] experienced the first warning signs in 2013 when he was recruited to join the healthcare startup by Holmes and theranos coo Ramesh Sunny balwani Elizabeth's secret lover at the time did you feel quite enamored by Elizabeth and sunny did you find them to be impressive when you first joined I found Elizabeth to be actually very Charming but also very enigmatic and I honestly found Sunny to be a bully and then Elizabeth she only wanted to know one thing for me which is could I be faithful could I be could I keep a secret basically did that strike you as unusual to be asked if you could keep a secret it did it made me wonder what was under the covers really [Music] you've testified occasionally it was revealed at trial that Dr rosendorf went from new recruit to the critical secret Source whose background briefings allowed the Wall Street Journal to crack the theranos fraud that claims by homes in balwani they could use just a pin prick of blood too cheaply and accurately test for 200 diseases at a time using a groundbreaking miniature mobile lab was a lie and that they're wildly and dangerously inaccurate results had been covered up [Music] my therapist at the time actually thought that I was crazy because who wouldn't you know here's the sort of Junior doctor saying that the greatest success story in history is a fraud [Music] 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 I'd like to welcome Elizabeth Holmes the real treat the incredible Elizabeth Holmes at its height everyone wanted the success to be real everyone wanted homes who so unashamedly modeled herself on Apple Steve Jobs to become silicon Valley's first female billionaire there are people in this world who revolutionize Our Lives Coco Chanel Steve Jobs Bill Gates Walt Disney and Elizabeth Holmes mark my words theranos valued at nine billion dollars folded under the weight of the truth disclosed by Brave whistleblowers the Fall From Grace was extraordinary you don't have the right to jeopardize Patients health because you want to be famous figure in Silicon Valley you want to be the new Steve Jobs you don't have the right to experiment with people's health [Music] retired biotech executive and cough sill sat in on the trial almost every day unable to drag herself away from the at times confronting and always captivating circus I knew a lot of people that had worked at theranos and had followed the story for a long time so I'm just really fascinated with The Emperor's New Clothes aspect of the story back in 2006 Elizabeth Holmes took Ann out for lunch Holmes wanted Anne to work for her as a consultant at theranos but the scientist wasn't convinced with your expertise when you heard those Ambitions did you think that this was a pipe dream or was this a holy grail of the work you do so I have a PhD in chemical engineering and I was really surprised and skeptical for me and other people in the field to believe it we would have had to see a really interesting invention because yeah all the rest of us were very far away from thinking that could be done as follows please raise your right hand do you swear to tell the truth the whole truth and nothing but the truth I do but home's greatest invention was the sophisticated fiction she created to Hoodwink investors and patients the woman that you saw on the stand at her own trial how did she strike you then I was amazed I mean absolutely amazed at how poised and sort of a perfect witness she is for being under these accusations and having evidence that's so negative and damning to her just unbelievably poised in a way that's unhuman to me like most people I know couldn't couldn't or wouldn't be like that was there any remorse with that was there any regret and he had no acceptance of wrongdoing no how do you take the defense line that the collapse of theranos really was about mistakes not malice it was never about hurting anybody or fleecing anybody yeah no I do not buy that at all I think they really systematically told lies that they knew weren't true from failed invention to reinvention former Insider Dr Adam rosendorf has seen it all over the last nine years most recently he's witnessed Elizabeth Holmes shift from a superstar scientist and Powerful businesswoman to a fragile victim as she's walked into court flanked by her current partner and mother I never saw her as somebody who needed hand-holding she's a shell of herself but at the same time she's she's essentially Unapologetic I mean during the trial she was staring at me with daggers like she's staring right through me as if she wanted to say to me you know how could you people don't even know that they have a basic human right to be able to get access to information about themselves do you have any reaction to your guilty burden the heims trial finished in January this year with homes convicted of fraud she remained on bail awaiting sentencing but just eight weeks ago two new bombshells did you think oh no here we go she's avoided jail it's a mistrial we've got to start all this again I definitely thought that when I first heard it uh back to the oh you cannot make this stuff up right here's one more twist that you're like oh my gosh can't believe that yesterday the founder of the healthcare startup theranos Elizabeth Holmes was sentenced to 11 years in jail for defrauding investors of 144 million US Dollars it's a sentence that brings no regrets for Dr Adam rosendorf the former lab director and whistleblower whose testimony helped put Elizabeth Behind Bars I don't have empathy for Elizabeth at all I think she's the only person who can help herself I don't think even after she serves a sentence necessarily that there will be any great Epiphany for her Dr rosendorf may have no empathy for Elizabeth Holmes but his empathy for her 18 month old son very nearly handed homes a get out of jail card after six days on the stand and after intense cross-examination Adam made the bewildering decision in August to approach Elizabeth Holmes a decision that could have led to a mistrial can you explain what happened why did you end up going to Elizabeth Holmes's house what was the point of that um I was feeling a lot of um guilt basically at the prospect of her young child growing up without a mom what was your intention merely to have her acknowledge what had happened in some way and her her role in it to express sympathy towards her for for the fact that her young kid would would grow up alone basically for a big chunk of their lives did you at any point think or understand the risk of what you were doing that this could upend everything no I wasn't really thinking about that I wasn't I was just wanting to talk to her as a human being so and so now that you do know how do you view what you did um ill-advised [Music] Adam didn't get to see Holmes but he did speak to her partner and father of her child Hetalia Billy Evans Holmes lawyers appealed to the judge to overturn the guilty verdict claiming Dr rosendorf had told Billy he was made to embellish his testimony the suggestion was that you had been pressured into painting things worse than they really were at theranos at the time that's what the defense put forward is there any truth to that were you asked by prosecutors to make it look worse no I the facts spoke for themselves I didn't need to invent anything or lie up there I didn't need to I just needed to be truthful also argued to the court Dr rosendorf's actions put his mental health in question which made his entire testimony unsafe but just a week and a half ago the judge found there was no need for a new trial to have your mental health cast into some sort of Doubt which then would cast your entire testimony into some sort of Doubt what was that like I was an affront to my dignity it was um it was Despicable it was I was shocked and disgusted do you regret coming forward do you regret your role in this no I did the right thing period I don't feel regret no as difficult as it was and it was like opening a can with it with a fork um I I don't feel any regret whatsoever I found him believable that he really wanted to do the right thing for patients and to do quality work and that he was just really torn apart watching on in court day by day was retired biotech executive and cough sill who dismisses much of what Holmes had to say in her defense as a cynical and desperate attempt to stay out of jail including revealing she'd been raped as a student plus the allegation she was coercively controlled by her former partner and CEO of theranos Sunny balwani I think the domestic abuse and the allegation or that she said she was raped at Stanford definitely gets sympathy but you know once you think that someone has committed fraud and is capable of of really just straight out lying to people it makes you suspicious of all the other angles in order to get a benefit like a lighter sentence any comment at all to the investors most also of you the need the homes Camp had to reveal to the court that Elizabeth recently found her adored pet dog dead as a desperate grab for sympathy raising greater Ayah is the timing of Elizabeth's second pregnancy first noticed just a month ago in an 11th Hour plea for leniency the judge was sent photos on Friday of homes as a new mum to her firstborn she became pregnant with the first child right before she went to trial now she's pregnant with a second child right before sentencing that cannot be applied to get later sentences and I I mean it's sad about her dog but that seems unrelated to the fraud and people paying a debt to society Elizabeth Holmes will be free until late April next year when she has to surrender herself to jail it's expected she will appeal even so Holmes conviction and now her pending incarceration has given whistleblowers like Dr Adam rosendorf a new sense of Freedom how much regret if any do you have Adam of ever coming across theranos I think to a large extent many people were screwed the minute they set foot in in that sort of prefab smelly building in in Palo Alto you know the day I decided to quit was the day that I climbed out of the pit of theranos towards the sunshine for brown thanks for watching 60 Minutes Australia subscribe to our Channel now for brand new stories and exclusive Clips every week and don't miss out on our extra minutes segments and full 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Channel: 60 Minutes Australia

Views: 3,683,432

Keywords: 60 Minutes, 60 Minutes Australia, Liz Hayes, Tara Brown, Liam Bartlett, Tom Steinfort, Sarah Abo, karl stefanovic, 60Mins, #60Mins, theranos, elizabeth holmes, theranos ceo, steve jobs, silicon valley, adam Rosendorff, dr adam rosendorff, whistleblower, theranos whistleblower, the bloody lie, medical scam, medical fraud, elizabeth holmes sentenced, elizabeth holmes in jail, elizabeth holmes 11 years, elizabeth holmes pregnant, elizabeth holmes trial, the dropout

Id: cd9p_4FkxNY

Length: 15min 53sec (953 seconds)

Published: Sun Nov 20 2022