Bad Blood Author Carreyrou On Elizabeth Holmes And Theranos

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 just finished the best business books in Shu dog filled nights incredible autobiography this one's called bad Bloods by John Kerry oh and it's about the sordid tale of thoroughness the alleged blood diagnostic company and its charismatic and culpable founder Elizabeth Holmes this book reads like a novel about greed about chicanery and all the way about tragedy tragedy for what it did to the people who use the device I promise you that you will hate almost everyone connected with this company and but think they should belong in jail when you're through reading this remarkable book written by the man who first exposed the giant con John Kerry you pulled surprise when a reporter from The Wall Street Journal that's why I was thrilled that he dropped by the set to talk about his riveting expose that you should read between now and Labor Day take a look John anyone who read bad blood secrets and lies in the Silicon Valley startup could they still believe that she is anything but crazy well I think people earn the right to you know ask and question what's going on in her mind and what has been going on in her mind for 15 years I like to say that this is different from a Bernie Madoff type of fraud in that she dropped out of Stanford really wanting to be an entrepreneur and her idol was Steve Jobs and she idolized Apple she really wanted to replicate that success story and I don't believe that she dropped out with this notion that she was gonna pull long con and defraud investors but unfortunately over the years she ran into setbacks with this vision of a blood-testing device she was trying to pursue and instead of admitting those setbacks and and you know admitting to her investors where she was with the progress she she lied and the lies got bigger and bigger and eventually the lies got so big relative to reality that it became a pretty massive fraud well Jane there's two schemes of this book and I just love it one is how all these people were fooled but the other I want to put first and you have a quote of someone screen in the un's at one point you heard people really hurt people well I mean one of the most outrageous things about this era no scandal is the fact that the company went live with its fingerstick tests in Walgreens stores in Northern California in Arizona five years ago in the fall of 2013 and knew the two people at the top Elizabeth Holmes and her boyfriend Sonny Bhawani knew very well that the tests were unreliable for one thing the the fairness machine only handled several of the tests a handful of the tests and most of the tests were being done on third-party commercial analyzers that they'd modified and hacked to adapt them to small samples and one of the things they did was they diluted the small droplets of blood to make the volume bigger to accommodate these these commercial machines and that of course introduced all sorts of room for error and in the end this company had to void nearly a million blood test results who knows what could have happened now on June 15 she was indicted by the federal government and when I read the book I felt that you could make a very compelling case right from the book that she did commit fraud and if you think fortunately to jail time that she should be in jail is that a reasonable presumption I mean I think this did metastasize into a fraud especially once she and Sonny ball wanting her boyfriend and number two at the company made the fateful decision to go live with these fingerstick tests in the fall of 2013 aside from from endangering the public health which they did by doing that the thing the key thing to remember about that decision is the company was running out of money then and so by going live with the technology they were able to solicit new funding to go to people like Rupert Murdoch who by the way owns my newspaper and other investors such as the Waltons hey Walton hairs and say to them look obviously we're for real obviously I've succeeded in inventing what I what I've told you I've invented because we've gone live with the technology we're offering these finger stick blood tests in stores in two states so obviously it must be real and that's how she was able to raise the last seven hundred million dollars in funding is is by using the fact that they had gone live in the stores to get more money well there's another element through the book that I love this insular nature of what basically is a Stanford contingent and you've got some I regard genuine villains including people I revered George Shultz is a villain in this story David Boies the Eternia is a villain in the story I have to tell you general mattis is a villain in this story well these are people I mean two of them Madison Shultz were on the board of Thera knows and I agree with you they don't come off looking good in the story I don't think they realized that their nose was doing most of the blood tests on these hacks commercial machines in fact I've seen a documentation recently from the SCC inquiry that that pretty much shows they had no idea and so she was lying to her board as well okay I believe that even even David Boies whose associates certainly don't come off looking good on a book after what they did with Tyler Shultz George Shultz's grandson whom they ham bushed at one point in his own grandfather's house even David Boies I don't think knew that out of 250 blood tests on the menu you had more than 240 that were being done on hacked commercial analyzers okay well that's we're gonna give him that but I don't know what to give to to mr. bird who at that point was running Safeway so desperate for growth to Walgreens a fearful that CVS was going to get this blinders in these people major business people right one of the most incredible parts of this story is that Walgreens actually hired a laboratory specialist a consultant and brought him in house in 2010 in 2011 a guy by the name of Kevin hunter and he was hired to look after their interests and to kick the tires and to do diligence on thier nose which he proceeded to do he went out to Palo Alto several times to see the company's headquarters meet with Sonny and Elizabeth he was also in these video conference calls they had every week and he started smelling a rat in late 2010 and he tried to alert Walgreens to the fact that this you know could become a major fiasco and the executives at Walgreens just ignored him they they were so if afraid that their nose would turn around and strike a deal with their arrival their arch-rivals CVS that they just ignored their own in-house consultant okay now there isn't an element of chose 10 here when I was reporter I covered Jonestown and what happened and for the most part the people who drank the kool-aid were not that educated and not that worldly how could this Conners convince so many brilliant people so many but is it the blacks is it the what black shirt is it the deep voices the Steve Jobs I mean these were major brilliant thinkers and they were all caught right and I think the answer of that is she's a very smart woman very charismatic one aspect of her is that she really did believe in her vision she really did believe that creating this machine they would be able to run every test known to man off just a pinprick of blood that that would really be good for society right and that it would do good and so I think she has this condition called moral moral sorry no noble cause corruption which is that she ultimately believed that what she was going to achieve when she got there was gonna be a good thing for Humanity and therefore every lie in every corner she cut along the way was justified well you know one of the things said I think it is astounding is this this puppeteer sunny people didn't even know we wasn't to get wrote the book right I mean if you if you try to look them up on the web you can't even find a photo of him he's had I think he's had the internet scrubbed but two people who had been at their nose from the beginning and there are a few employees who did manage to escape the the massive purges that went on there all the time they knew that that he was her longtime boyfriend they essentially started living together in 2005 in a condo he owned and Palo Alto for the first five years or so the company he was behind the scenes he didn't actually work there and then in 2009 he joins and at that point this this culture of fear and paranoia is a constant turnover all that goes into overdrive and from that point forward they really run this company as a couple and they perpetrate this fraud as a couple all right one last question what is her next or last act and is black the new orange could this woman end up in prison well she's facing 11 counts of wire fraud the the indictment by the US Attorney's Office San Francisco describes two schemes one to defraud investors of more than 700 million dollars and the other to defraud doctors and patients and make them believe they were using accurate and and innovative technology and you know that the potential sentence is if she's convicted by a jury is 20 years behind bars recently the the prosecution is handed over all the evidence as part of the discovery in the criminal case and it's contained in a 2 terabyte hard drive so I mean that that's more storage than you have on your average computer that you buy that nowadays so that gives you not a nano Taner bigger than any entertainer much much much bigger than well I would congratulate john kerry's what Wall Street Journal's investigative reporter author of bad blood secrets and lies in the Silicon Valley star I knew the whole story it read like a fast-paced novel you must read this book may have monies back after the break oh yeah Jim Cramer here from there buddy thanks for watching CNBC on YouTube click here to 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39 thoughts on “Bad Blood Author Carreyrou On Elizabeth Holmes And Theranos

  1. If this devious white woman is Jew it’s not a surprise coz Jewish people like Bernie are well of criminals their greed is beyond imaginable.

  2. 2 TB isn't really that much for a computer. Even laptops are coming with more than that as of the time this was published.

  3. can you Americans understand Jim Cramer?! lol He sounds like a bad breed between an Irish and a Scottish American

  4. 5/4/19….WHAT's with the "fake" voice? Is she trying to sound like a guy? Or is she a trans with her "pretend" guy voice?
    MUST BE SOMETHING IN THE CA WATER OR AIR—-This woman with her "fake guy" voice + (fake) Dr. Ford of Kauvanaugh fame with her "fake little girl voice"?

  5. Cramer acts like he never interviewed Holmes and gave her a platform for perpetuating her (possible) fraud. He did and was very enthuthsiastic about Theranos before this scandal broke.

  6. This guy Cramer always talks like he's trying to squeeze out his first dump in three days.

  7. Thank you, Mr Carreyrou, for exposing this monstrous fraud — and the grotesque, almost Stalinist treatment of anyone that worked for the principals of Theranos.

  8. Jim Cramer was one of the enabler. Theranos lawyers should be disbarred, especially David Boies, Heather King and Mike Brille. Their actions were downright illegal: harassment, coerce . Boies, Schiller & Flexner sohuld be disbanded.

  9. At 7:12… context begins a few seconds prior… Carreyrou’s face when Cramer says “is it the blacks?” is great 🤣🤣

  10. Just finished reading book. Elizabeth Holmes was all about the aesthetics of the product not enough science.

  11. This video needs to stop auto-playing on my playlist. His voice is really annoying to me. I can't enjoy the interview.

  12. Wow! I am going to stop using Walgreens pharmacy and medicines. Do not trust it anymore !!!

  13. Look at the author apologizing for her. Yeah I am totally going to buy your book now. What kind of spell is this witch casting on these guys. Are they really turned on by the deep voice? Is that it. It's gross … she's gross and anyone with a functioning brain could see she was nuts from day one.

  14. Cramer can never lose…he unknowingly pumped and knowingly dumped Theranos

  15. jim cramer you need to shut up cuz u were praising her as if she was god

  16. It seems obvious that Elizabeth Holmes is a sociopathic transvestite. Yet what of the horror that SO SO SO many HUGE multi million and even billion dollar investors that so GRAVELY lacked in EACH own's due-dillgence in doing an adequate investigation PRIOR to dumping millions and billions into that worthless POS evil wretchs web of lies??
    And adding to that horror and trauma is this reporter that absolutely has NO, ZERO business being any sort of reporter being he clearly does NOT even know the difference of PRISON vs jail!!
    IE, Elizabeth Holmes, the Obominators, the Clintons and for sure Hillary belong in PRISON. Yes PRISON is the correct term.

  17. I suspect it is easy to con people who aren't scientists with technical jargon they do not understand. Didn't she intentionally keep her board 100% free of qualified scientists who could challenge her? If I talked to a businessman about Organic or Biological Chemistry and chemical reactions with the heme groups in blood for more than 30 seconds they would be lost unless they too had a degree in Chemistry and could quickly tell I was full of bull.

  18. You would have thought they would use an anchor who could talk properly or at least you could understand!

  19. Apparently men find her charismatic, even Kramer did. I don't know, I just see a blonde Gomer Pyle.

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