From $9 Billion To $0 - The Most Shocking Healthcare Scandals of The Century.

Elizabeth Holmes once hailed as the next Steve Jobs orchestrated one of the most shocking corporate scandals of the century. Holmes's healthcare startup, Theranos, claimed to have developed technology capable of running blood tests with just a few drops of blood.

Theranos garnered massive investments, reaching a valuation of $9 billion at its peak, with Holmes becoming the youngest self-made female billionaire. Investigations later revealed that Therano's technology was deeply flawed and inaccurate, putting patient's lives at risk.

The company used commercially available machines for most tests, while its own devices produced unreliable results. Holmes misled investors, partners, and the public about the capabilities and accuracy of their technology, knowingly putting profits over people's health.

Former employees revealed a culture of fear and intimidation, where dissent was squashed, and those who raised concerns were sidelined or fired. Despite mounting evidence of fraud, Holmes maintained her public image as a visionary entrepreneur, and appearing on magazine covers.

The truth began to unravel in 2015 when investigative reports exposed the discrepancies in Therano's claims. It was revealed that the company had been using commercially available machines for the majority of its tests, rather than its proprietary technology.

In 2018, Holmes and her former COO, Ramesh "Sunny" Balwani, were charged with massive fraud by the SEC. The indictment alleged that they had deceived investors, regulators, and patients about the capabilities of Theranos' technology.

Holmes settled with the SEC, agreeing to pay a $500,000 fine, relinquish control of Theranos, and be barred from serving as an officer or director of a public company for ten years.

In 2019, she was indicted on criminal charges of wire fraud and conspiracy to commit wire fraud, facing up to 20 years in prison if convicted.

The downfall of Elizabeth Holmes serves as a cautionary tale about the dangers of blind faith in charismatic leaders and the importance of rigorous due diligence in the world of startups and investment.