Down-on-his-luck Theranos founder Elizabeth Holmes ‘has ambition to be resurrected’ despite being jailed for years-long scam that saw her become one of America’s most notorious tech billionaires, creator of award-winning podcast has said about the scandal .
The 38-year-old was sentenced to more than 11 years behind bars Friday, having been convicted of four counts of fraud after a case that gripped the world.
Her astonishing rise and fall: from the youngest self-made female billionaire in US history to her company once valued at $9 billion sink in shame – inspired podcast The Dropout, which this year was adapted into an acclaimed TV series of the same name starring Amanda Seyfried.
ABC News correspondent Rebecca Jarvis interviewed former employers, investors and patients over the course of several years and has since spoken to some of the 12 jurors who decided Holmes’ fate.
“It’s a bad bet to assume this is the last we hear of Elizabeth Holmes,” she told Sky News.
“He has the ambition to get back up and do more.
“I have reports from a handful of sources who weren’t part of the suit, that they lost money on this story, but ultimately said they would back it up again if it came back with a new idea.”
Read more:
How Elizabeth Holmes Went From Dear Silicon Valley To Disgrace
Amanda Seyfried as Holmes in The Dropout: Pic Disney+
Investors could “try again” if Holmes returns
Modeling itself on his idol Steve Jobs, the famous co-founder of Apple, Holmes’ company has taken Silicon Valley by storm with the promise of a revolutionary blood-testing technology that has attracted a whole host of big investors.
Among them were Rupert Murdoch and the American pharmaceutical giant Walgreens, while former secretaries of state George Shultz and Henry Kissinger were on the board of directors.
They’ve all been fooled by the promise of technology that can test for dozens of diseases with just a drop of blood, potentially eliminating the need for trips to the doctor by throwing the gadgets at the stores.
“For a while, you could walk into a Walgreens and visit one of the Theranos spas — and there was this promise that the technology would find its way into most Walgreens in the country,” Jarvis said.
“If Elizabeth Holmes had achieved her goal, it could have been in the hands of most Americans.”
Despite the fact that the technology has never worked as advertised, Jarvis says the promise of such an idea would be enough to lure investors in once again.
As a female CEO, she had “defied many odds” by raising hundreds of millions of dollars, aided by the creation of a “glamorous” persona defined by turtleneck sweaters, an extraordinarily deep voice, and a goal to “change the world”.
“We’ve seen things like this happen with Silicon Valley — big investors reinvesting with founders who… may not have been charged with fraud, but who lost everything,” Jarvis said.
“It’s definitely not out of the question. You’d see people who have lost to her once. Try it again and see if it works.”
Elizabeth Holmes has shook hands with the likes of former US President Bill Clinton
Dangerous ‘pressure’ of big tech
The culture of Silicon Valley, home to companies like Apple, Goal of Mark Zuckerbergand the owner of Google Alphabet, came under massive scrutiny as the Theranos dream unraveled.
The treacherous “fake it till you make it” ethos that permeates American startups creates a pressure that helps personalities like Holmes emerge and will continue to do so, according to Jarvis.
“You don’t have an Elizabeth Holmes without some of this ecosystem that exists around her,” she said.
“I’ve been in technology, business, and economics for nearly two decades, and you see history repeating itself over and over again. Changes can happen, but they’re mostly incremental.”
If there was a positive legacy from the Theranos scandal, Jarvis believes it could lie in the willingness of whistleblowers to sue their employers.
Among the key people in exposing Holmes were research engineer Tyler Shultz, nephew of board member George, and laboratory assistant Erika Cheung.
Mr. Shultz’s relationship with his family has been greatly strained since his decision to speak out, while Ms. Cheung – a recent college graduate at the time – feared for her career prospects.
Both contributed to John Carreyrou’s bombshell report in The Wall Street Journal, and are featured on the podcast and show The Dropout, of which Jarvis was an executive producer.
“In the short term they faced real consequences, and it wasn’t pleasant,” Jarvis told Sky News.
“But in the long run, what they said was true and it was confirmed in a court of law: Elizabeth Holmes was convicted, the jury found her responsible for the things they said she was responsible for.
“Show the power to speak up when you see something that doesn’t feel right. While there may be short-term consequences, the truth will ultimately prevail.”
