Another Theranos story.
That first Carreyrou story reported that Theranos’s blood-testing machine had significant accuracy issues and had been used for only 15 out of a claimed 240 tests. Subsequent stories revealed that the machines never really worked, would often malfunction, and could lead to inaccurate diagnoses. Today, the investors are gone; Holmes and the former president and chief operating officer of Theranos, Sunny Balwani, who was also her secret boyfriend at the time, are both facing federal criminal investigations, and they have been charged by the SEC with running an “elaborate, years-long fraud.”
The story of Theranos may be the biggest case of corporate fraud since Enron. But it’s also the story of how a lot of powerful men were fooled by a remarkably brazen liar. It took just one reporter, and three former Theranos employees, to expose her.