Journalist Who Broke The Theranos Scandal Had This To Say About Elizabeth Holmes
As the days slowly dwindle in the lead-up to the trial of former Theranos CEO and founder Elizabeth Holmes — who was charged with multiple counts of wire fraud and conspiracy to commit wire fraud in 2018 following a two-year investigation by federal officials — it seems that a major player in the story of the downfall of the health tech company has once again emerged.
Holmes, who rose to fame after dropping out of Stanford University in 2003 at 19 years old in order to revolutionize the field of medicine with an invention called the Edison — a box the size of a printer, which she claimed could run hundreds of diagnostic tests for patients with only one drop of blood — reportedly squeezed millions of dollars out of investors in order to fund a technology that never actually existed. (Per the prosecution, Holmes used the money meant for Theranos, once valued at $9 billion, to fund her lifestyle.) Chief in uncovering Holmes' alleged fraudulent dealings was Wall Street Journal reporter John Carreyrou, whose investigation into Theranos contributed heavily to an ensuing investigation into the company by the Securities and Exchange Commission (SEC) and the charges ultimately brought against her.
Now, according to a July report by CNBC, it looks like the journalist and author has weighed in on Holmes' upcoming trial, which is scheduled for August 31 of this year. So how does Carreyrou think Holmes will fare in court? Read on below to find out more.
Journalist John Carreyrou thinks Elizabeth Holmes will be found guilty
According to CNBC, John Carreyrou, who was once considered by both Elizabeth Holmes and the employee denizens of Theranos to be public enemy number one for his coverage of their enterprise (even going as far as to chant "f**k you, Carreyrou!" at company-wide meetings, per Vanity Fair), has a prediction for how Holmes' August trial will turn out. And unfortunately for Holmes, it isn't looking pretty — at least, in Carreyrou's opinion, that is. But even more than that, the outcome of the trial court have major ramifications far beyond whatever Holmes' verdict might be.
As the Wall Street Journal reporter stated in a recent episode of the CNBC podcast "Bad Blood: The Final Chapter," based on Carreyrou's own book of the same name, the journalist stated he believes that not only will Holmes be found guilty, but that her conviction will result in a "major shot across the bow to entrepreneurs in Silicon Valley," a sector widely known for its lack of regulation and with a reputation for comparative industry lawlessness. "The message will be that you can't really do anything you want, you can't completely ignore rules and regulations," Carreyrou stated.
But while Carreyrou thinks a conviction is more likely than not, he also stated an acquittal for Holmes could be calamitous. "Young entrepreneurs will say 'look what Elizabeth Holmes got away with, and she didn't go to prison for it.'" Carreyrou said.