He is also a journalist specializing in exploration reports for the Wall Street Journal, which has won the Pulitzer Prize twice. He graduated from Duke University’s Department of Political Science in 1994 and joined the Wall Street Journal in 1999. At the end of 2015, Carrie-Loo begins to question the state-of-the-art startup “Teranos,” founded by Elizabeth Holmes. The media and many prominent Americans alike have been busy praising Terranos and the young CEO, but Carrie-Loo managed to uncover the scams of Terranos after persistently covering all kinds of hindrances. With this remarkable achievement that saved many lives, Carrie-Loo won the’George Polk Award’ in the financial reporting category, the Gerard Robb Best Report Award in the excellent corporate and financial reporting category, and the’Barlet & Steel Silver’ in the corporate exploration report category. Awarded. Currently he lives in Brooklyn with his wife and three children.
Second Steve Jobs or Bill Gates?
The genius that Silicon Valley longed for was born!
Elizabeth Holmes, 20, who dropped out of Stanford University in 2003, founded Terranos, a high-tech medical technology startup. He told her that she had developed a portable software system capable of diagnosing about 200 diseases with just a few drops of blood collected from her fingers, and whether her professors and other people from all walks of life resemble her adoring fans. . By the beginning of 2015, Terranos became one of the best startup companies in Silicon Valley, and its corporate value soared to a whopping 10 trillion won.
“You can do hundreds of health tests with just one drop of blood at home!” Terranos’ catchphrase was truly a revolution. In particular, the words of founder Elizabeth Holmes to save people by finding and predicting diseases inexpensively and conveniently were sublimely accepted by Americans suffering from expensive medical expenses. Here, Elizabeth Holmes, CEO, who combines her distinctive speech, aggressive yet powerful leadership, and beautiful appearance, was not at all lacking to emerge as a star in an instant. That way, she became the second influential person wearing the billboards Bill Gates and Steve Jobs, and numerous media hailed that this diagnostic method would save many lives by bringing unimaginable time and cost savings.
The unstoppable rise and the suspicions that have been turned away
There seemed to be no obstacles to stop Terranos’ rise, not only with large pharmacies and supermarket chains that owned thousands of stores in the United States alone, such as Walgreen and Safeway, as well as the U.S. military contracts with Terranos. In addition, authoritative figures and investors such as Rupert Murdoch, Henry Kissinger and George Schulz continued to pour out money to ignite Elizabeth Holmes’ success story. But this “blessed skill” didn’t exist, and all the sweet promises were scams!
It was John Carrielu, a journalist for The Wall Street Journal, who first sensed the suspicion and began to gather the information. Carrie-Loo recalls an interview with Elizabeth Holmes in The New Yorker, which he had just read after receiving a phone call from a doctor who runs a medical blog.
“When you do chemistry, a chemical reaction takes place, and when you chemically interact with a sample to form a signal, you produce results. The results will be reviewed by certified laboratory personnel.”
Her answer to the question of how the Terranos diagnostic device works is not a statement from a company founder with advanced science and technology that someone in the industry can compare to a’time machine’, rather than a high school student taking a chemistry class. It was more of an ambiguous and ridiculous groping.
How could Elizabeth Holmes fool the world’s best investors?
Carrie-Loo, a proven journalist in the field of exploration that already won two Pulitzer Prizes at the time, is based on interviews with about 160 courageous whistleblowers, including 60 employees, and the various flights committed by Elizabeth Holmes and the company’s executives. Begins to dig through the evidence for
The results were amazing. For many years, Holmes has been hiding the fact that Terranos’ technology has not only been seriously flawed, but has been secretly using another company’s device because it is so inaccurate that it cannot be used. Then, whenever employees raised concerns, they were fired on the spot and forced everyone to sign a confidentiality pledge not to mention anything about Terranos. Teranos, rolling in delusions and intimidation, deceived customers, customers, and even state institutions, and developed a bond of lies.
A more exciting revelation than a crime thriller!
Surprisingly, there are many moments in which laughter will burst in this bitter story. Elizabeth Holmes, who admired Steve Jobs, scouted her former iPhone staff to resemble him, mimicking Jobs’ famous outfits and everyday life. Wearing black turtlenecks and black pants, the blatant “copying” that was enough to eat the same food all day long later turned into laughter for many.
In addition, it is surprising that he was obsessed with security enough to suspect paranoia, and that only the representative himself, in order to monopolize information, banned communication between departments at all. For this reason, many employees testified that each department at Terranos can only know the field it is in charge of, but it is impossible to test the system itself.
Lies come with many secrets. ‘Surveillance’ based on security doesn’t stop there, not only prohibiting external leakage of information, but also finding forwarding of business emails to employees’ personal emails, eliminating all evidence in advance. It was close to a borrowed dictatorship. When John Carrieloo begins to ask questions about this instinct, Terranos uses his fortunes and personal connections to threaten the best law firms in the United States, and even watch and follow dizziness.
However, Carrie-Loo and The Wall Street Journal, armed with a belief in justice and skillfulness, were able to report the dangerous scams of Terranos for the first time without surrendering to all kinds of threats. By early 2017, Terranos’ corporate value had reached zero, and in March 2018, the U.S. Securities and Exchange Commission prosecuted Holmes for committing “a sophisticated fraudulent practice over the years.”
A great decision and feat that saved countless people who could have lost their lives because of a fake medical device!
Some readers may have heard the word “vaporware.” A term originating in the early 1980s, it refers to a phenomenon in which a new product is announced in advance in the IT field, attracting attention, and then it takes many years to actually be released, or it cannot be released in the end. This strategy, which hides the actual development situation and hype the product to secure funding, and eventually hopes the development to catch up with reality, is still accepted in the IT field.
However, as the author emphasizes, the biggest problem was that Terranos was a company that made medical devices that could influence people’s health and even their lives. In that respect, not only reporter Carrieru, but also the employees who testified at the risk of personal threats and related industry people are all heroes who saved countless lives. In particular, considering the fact that the Terranos test was scheduled to begin at Walgreen’s 8,000 stores near the time of the release, it would not be unreasonable to feel the fear of standing upright.
At first, Chenak caught him because he knew nothing. But Mosley, convinced that Shenock was hiding something from her, continued to pursue her. Then Schenak gradually opened her mind and confided that the blood testing system Elizabeth calls “Thera North 1.0” did not always work successfully. It was an uncertain gamble whether it actually worked. There are times when it works and produces results, but there are many times when it doesn’t.
It was the first news for Mosley. Mosley believed that the system was stable. That’s because it always seemed to work when investors visited.
Elizabeth hoped that she would have the technology to perform all her tests with just a single drop of blood taken by pricking the patient’s fingertips. So obsessed with the idea, Elizabeth was even frightened by the fact that her staff displayed the Terra North logo in red Hershey Kisses chocolate at her public job fair. Hershey Kisses chocolate symbolized a small amount of blood, and she was angry that Elizabeth said she was too big for Kisses chocolates to convey the amount of blood she thought she thought.
With Wall Green and Safeway as her distribution partners, Elizabeth suddenly faced a problem she caused herself. It was that she had promised her two companies that they could perform hundreds of tests with small blood samples. But she was actually able to run only immunoassay tests that use antibodies to measure substances in the blood with Edison. Immunoassay tests included only general tests, such as tests that measure vitamin D or detect prostate cancer. But she needed completely different experimental techniques for other routine blood tests that measure cholesterol or blood sugar.
Elizabeth and Daniel ignored the email. She thought she had reached her ethical milestone, eight years after joining Terra North. It was okay when a company tried to solve a problem with a product by voluntarily receiving blood from employees and their families during the research and development process, but launching the product in the Walgreen store was not even approved for a research or experimental machine to the public It meant exposing it as it is. She was an unacceptable problem for Anzali. So she decided to resign from her.
The phone rang before Tyler even reached the car. It was Tyler’s mother, and her voice seemed urgent.
“Stop what you’re trying to do right now!” Her mother begged.
Tyler replied to her mother that it was already too late. He had already decided to leave, and had already signed his resignation documents.
“It’s not like that. I just spoke to your grandfather. Her grandfather said that Elizabeth called and said that if you tried to keep revenge on her, you would eventually lose.”
But what Alan was more worried about than his personal responsibility was that the patients were at risk. Allen described two nightmare situations that an incorrect blood test result can cause. If the result is false positive, the patient may have to undergo unnecessary medical procedures. It is even more dangerous if it is a false negative result. Patients in serious condition may not be diagnosed properly and eventually die.
As I hang up the phone, I felt the joy I felt whenever I grabbed a huge scoop. So I had to remind myself that this was just the first step in a lengthy process. There were still many problems to understand, and above all, confirmation was needed. No matter how solid the source of the information is, it is impossible for a newspaper to publish an article by listening to only one anonymous informant.