The consequences of the Theranos debacle have finally caught up with Elizabeth Holmes, the former CEO of Theranos. On April 27, 2023, she will be welcomed into prison, handcuffs and all. As a business ethics keynote speaker, business ethics consultant and book author, I am not surprised she lost her wishes to stay out of prison during the appeal process.
There were many different angles to her attempt to outrun her fate: having another baby, throwing her co-founder and boyfriend under the legal bus; buying a one-way ticket to Mexico. All it accomplished was to make her a flight risk. I understand, prison is painful especially for one who was elevated, deified, wined and dined and was once quite wealthy.
She hurt many people; she deceived even more.
The Steve Jobs Wannabe
Holmes idolized Steve Jobs, the founder of Apple. She once wore only black turtlenecks, like Jobs, she made big promises, like Jobs and she attracted big money, like Jobs. However, the similarities stopped there. Even as Jobs was faking it until he made it, there was a sliver of innovation and purpose as to what he was developing. He eventually succeeded.
Elizabeth Holmes lied, cheated, faked and stole. More than that, Elizabeth Holmes faked test results and blood tests. She gave sick people false hope. She gave investors false hope because she knew the technology would not work and could not work. Her employees told her to shut down the company so she shut them down.
The Steve Jobs wannabe will soon begin an 11-year sentence for wire fraud and conspiracy. Many believe she got off light. If she does what she is told, I am certain the sentence will be reduced. If she screams about privilege, it could be worse. The judges were unsympathetic at her sentencing and no matter how many appeals she tries, in two, three or seven years from now, her children won’t know her. Judges don’t care. Her appeal wouldn’t have reversed the charges and she still can’t explain why she chose tickets to Mexico as a backup plan.
The much bigger picture
Many high-priced, legal defense minds were paid handsomely to defend Elizabeth Holmes. They partially succeeded in knocking down a few of the charges, but not enough. She had avoided the truth, and good ethics, for so long that there weren’t enough creams to cover up the lies. My guess is that she rationalized her lies for so long, she began to believe what she was selling was real. Even in her inner Theranos circle her fraud had unraveled and no one believed that what she theorized, would never materialize. Fraud indeed does have many faces, and at some point, Elizabeth Holmes might have looked in the mirror at her face and shuddered.
I think it matters, and it must be mentioned. Elizabeth Holmes was the ideal to many. She is tall, white and attractive, intelligent and the embodiment of the confident, movie-star persona. She self-assuredly talked and people believed her. It says all-too-much about society and privilege. And, I wonder from time to time, was anyone truly listening or were so many fantasizing and wishing? She used it, she flaunted it and in the it disgraced her.
Of course, there were physicians and laboratory technicians; scientists and engineers; business writers and journalists who tried to get words in edgewise. There were people smelling fraud, people who work in the field of medicine and healthcare who wanted the brakes pumped and pumped hard. No one wanted to listen.
At any time along the continuum, Holmes could have owned-up but she never did.
Why did she persist?
My guess, as a business ethics keynote speaker, business ethics consultant and book author is that the statuesque Holmes was in too deep, and like many a Ponzi-scheme fraudster she could not get out. Maybe, just maybe, that could have been the only half-lame defense she might have mounted that would have carried a sliver of truth.
But she didn’t. She ruined lives and disgraced herself. She should be thankful no patients died as the result of her incredible arrogance. What was the mystique of Elizabeth Holmes will now end as the prison doors close.
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