Recent Testimony In Elizabeth Holmes' Fraud Trial (FAME AND SHORTCUTS) — Transcript

Full transcript

1. 0:02i am a fan of the comedian kevin hart
2. 0:05not as much as i used to be sometimes
3. 0:07when i'm bored i'll watch some of his
4. 0:08netflix specials the old ones from years
5. 0:10ago and i mentioned this because there's
6. 0:12a line that kevin hart it's actually a
7. 0:14huge quote
8. 0:15he has hung in his beautiful home that
9. 0:17says something like everyone wants to be
10. 0:19rich and famous but not everyone wants
11. 0:21to do the work when i read that quote i
12. 0:23think of elizabeth holmes in this trial
13. 0:26because despite all of the problems
14. 0:29despite the processes that were
15. 0:31continually broken down despite now
16. 0:33whistleblowers who are really heroes
17. 0:35testifying about all the problems they
18. 0:38found within this company and how they
19. 0:40addressed it to miss home she was
20. 0:42full steam ahead don't worry our product
21. 0:44doesn't work not a big deal don't worry
22. 0:47that you know walgreens doesn't have all
23. 0:48the fact let's keep going and by the way
24. 0:50make sure my name is on that patent make
25. 0:52sure i'm on the cover of entrepreneur
26. 0:54magazine so in my experience she
27. 0:57liked or from what i have read and
28. 0:58learned she liked the fame and the
29. 1:00accolades that comes with stardom and
30. 1:01being rich and famous but perhaps didn't
31. 1:04fully pay attention to
32. 1:06the work and delivering the product
33. 1:08as they promised as they raised hundreds
34. 1:10of millions of dollars on and as i said
35. 1:13in a prior video yes some of it's he
36. 1:15said she said but with the text messages
37. 1:18and
38. 1:18whistleblowers who not who are not under
39. 1:20indictment they're really in a position
40. 1:22to speak openly they don't have an axe
41. 1:24to grind and in this video number seven
42. 1:26in the elizabeth homes trial and by the
43. 1:28way if you're watching this on youtube
44. 1:30please like and subscribe thank you if
45. 1:31you're listening to our prison pro
46. 1:34prison professors
47. 1:35podcast and traffic because i'll be in
48. 1:37traffic here in about two hours dropping
49. 1:38to the dodger game tonight let's hope
50. 1:40they win so thank you very much for your
51. 1:42attention we know you're busy these
52. 1:43whistleblowers set everything off and
53. 1:46without them we may not be in a position
54. 1:48to learn what happened and potentially
55. 1:50hold belwani and homes accountable so as
56. 1:52i transition over to some screen share
57. 1:54we're going to focus on
58. 1:56the testimony of someone who started
59. 1:58this whole
60. 1:59process and for quite some time we
61. 2:02didn't know who it was so in 2015
62. 2:04adam rosendorff a former lab director at
63. 2:07theranos provided information to the
64. 2:10wall street journal about his concerns
65. 2:11about this company of course this
66. 2:13launched the whole investigation
67. 2:15initially started with the securities
68. 2:16exchange commission even and i actually
69. 2:19saw a youtube comment a testing to this
70. 2:21and i thought the same thing
71. 2:23he during the depositions in the
72. 2:25security exchange commission what did
73. 2:26holmes do well she blamed others as she
74. 2:29you know all blame is elsewhere not on
75. 2:31her so while she wanted the money and
76. 2:33the riches and the accolades that comes
77. 2:34with it she didn't necessarily want the
78. 2:37responsibility that follows kind of like
79. 2:39kevin hart's quote that said everybody
80. 2:40wants to be rich and famous not everyone
81. 2:42really wants to do the work so these are
82. 2:44really good lessons to draw from so
83. 2:46based on rosendorf's testimony and
84. 2:48others we know the department of justice
85. 2:51eventually charged homes with fraud the
86. 2:54security exchange commission of course
87. 2:55is a regulatory agency some would argue
88. 2:57toothless because it's more civil fines
89. 3:00when the doj comes in it's time to party
90. 3:02because they're looking to send people
91. 3:03to prison for a long time
92. 3:05on the stand rosendorf testified that he
93. 3:08resigned from theranos in late 2014. he
94. 3:11left he said because holmes and the
95. 3:13management team refused to address
96. 3:15quality control issues with their noses
97. 3:18blood testing technology again want the
98. 3:20riches want this accolades that follow
99. 3:23it but don't want to follow quality
100. 3:25control issues when you're potentially
101. 3:26dealing with tens of thousands or
102. 3:28millions of potential people going
103. 3:30through a product that you're supposed
104. 3:32to create it's different than writing a
105. 3:34book that people may not read they may
106. 3:36not like it okay could have been better
107. 3:38it doesn't necessarily hurt you if you
108. 3:41wanted to be a great book but in this
109. 3:43case without quality control without
110. 3:45best practices to follow this
111. 3:47potentially is going to going to hurt
112. 3:49people but in their case it was like
113. 3:50consequences be damned if something goes
114. 3:52wrong
115. 3:53it ain't my fault at least that's the
116. 3:55major defense
117. 3:56that they're articulating of the three
118. 3:59continuing
119. 4:01rosendorf testified forgive me
120. 4:03at open court that he felt a sense of
121. 4:05obligation to alert the public and
122. 4:08initially he didn't know how to do it so
123. 4:09when he had this contact with the wall
124. 4:10street journal he reached out had some
125. 4:13conversations and i can tell you when
126. 4:15you are around i'm going to get off of
127. 4:18this for a moment when you are around
128. 4:20forgive me when you are around
129. 4:22wrongdoing
130. 4:23it it feels good at times to to purge to
131. 4:26totally come clean
132. 4:28so you know some whistleblowers may not
133. 4:30want to bring it home to their family to
134. 4:32their children to their friends who may
135. 4:34have no idea really what they do on a
136. 4:35daily basis but some people just want to
137. 4:37talk
138. 4:38it's very cathartic so i'm sure as he
139. 4:41was opening up to this wall street
140. 4:42journal reported it was reported it was
141. 4:44both important to come clean to share
142. 4:46what he had learned to help hold holmes
143. 4:48and belwani and others who might have
144. 4:50participated in this conduct accountable
145. 4:52but it's also somewhat cleansing to
146. 4:54speak freely and openly and it's i think
147. 4:56it's excellent he found a trusted
148. 4:57reporter at the wall street journal who
149. 5:00kept his
150. 5:01uh who kept his word and who really
151. 5:03stood alongside him recently i think
152. 5:05it's in this this blog that you can
153. 5:07access free prison professors that
154. 5:08reporter really allotted him as a hero
155. 5:10and he is because his his work and
156. 5:12coming clean is going to help a lot of
157. 5:14people and help ensure this doesn't
158. 5:16happen again in in the future
159. 5:18continuing rosendorf told the jury that
160. 5:20a few months after he started working at
161. 5:22theranos he wrote an email to holmes
162. 5:24with his concerns
163. 5:26about the launch of theranosis devices
164. 5:28in walgreens stores he didn't believe
165. 5:30theranos is ready for the rollout and he
166. 5:32tried to delay the launch he noted how
167. 5:34serious it was to use faulty blood
168. 5:36testing devices on patients having to
169. 5:38provide patients and doctors that would
170. 5:40lead to inaccurate results so again it's
171. 5:42not just he said she said which was a
172. 5:44great movie by the way in the 80s with
173. 5:45kevin bacon loved that film
174. 5:48but rather here's the evidence so holmes
175. 5:50can blame belwani and others and she'll
176. 5:52probably say this you know
177. 5:53whistleblowers out to write a book and
178. 5:54get rich and famous who the hell knows
179. 5:56right oh he's going to go do a ted talk
180. 5:58and make up all these things about me
181. 5:59that's sometimes what you hear
182. 6:01he said she said when you see the actual
183. 6:03emails when you have a former director
184. 6:06turned whistleblower providing emails to
185. 6:08the government or the government would
186. 6:09subpoena them articulating his concerns
187. 6:13and then having the director the rich
188. 6:14famous ceo overcome them or say don't
189. 6:16worry about it it's nothing that we need
190. 6:18to address right now again it comes out
191. 6:20kevin hard quote she wants the fame she
192. 6:22wants the riches she wants the accolades
193. 6:24doesn't really want to
194. 6:26put priorities in place they're going to
195. 6:27get there safely and smoothly with the
196. 6:30interest of the consumer the potential
197. 6:31patient
198. 6:32uh in mind
199. 6:34further or what we can expect her
200. 6:36defense attorney to to say
201. 6:39is that they're gonna
202. 6:40suggest that holmes was unaware of the
203. 6:43issues with the walgreens rollout but
204. 6:45rosendorf's testimony clearly shows
205. 6:47along with emails clearly shows that she
206. 6:50was looking to circumvent uh the process
207. 6:52further the government will argue along
208. 6:55with their witnesses that holmes was
209. 6:57more than aware she had a plan
210. 7:00and holmes told them what their notes
211. 7:01would do if the devices did not perform
212. 7:04they would still conduct patient blood
213. 7:05tests by taking a larger blood sample
214. 7:09and use conventional blood analyzers
215. 7:11instead of the edison theranos
216. 7:12proprietary device so you got this whole
217. 7:14like buildup over this device and it's
218. 7:16hey it doesn't work let's just go use a
219. 7:18you know a standard one let's go use a
220. 7:20conventional one that we didn't create
221. 7:22and take credit for it i mean this is
222. 7:24this is taking shortcuts to the
223. 7:25detriment of others consequences
224. 7:28be damned and again whistleblowers like
225. 7:30this are our heroes because there's a
226. 7:32great deal of risk that comes to
227. 7:33whistleblowers the use of conventional
228. 7:35blood analyzers is at the heart of the
229. 7:37government's fraud charges homes relied
230. 7:39on non-theranose machines while
231. 7:41maintaining the illusion that they were
232. 7:43using theranosis proprietary machines
233. 7:46and technology in the end as we know
234. 7:48rosendorff resigned because he felt the
235. 7:50company was all about public relations
236. 7:51and media hype did not take the
237. 7:53necessary steps to perform
238. 7:56machine proficiency testing is required
239. 7:57by law again this comes down to that
240. 7:59kevin hart analogy whether you like him
241. 8:01or not he's successful he worked i
242. 8:02listened to his 12-hour audio book that
243. 8:04he narrated it's fantastic but you can
244. 8:06hear how hard he worked the drive that
245. 8:08he put in to become successful whether
246. 8:10you're a fan or not
247. 8:11they were unwilling to do that work here
248. 8:13i think if anyone's successful in your
249. 8:14life how hard have they worked the drive
250. 8:16the commitment the long days no
251. 8:17shortcuts
252. 8:19no stepping over people to get ahead if
253. 8:21their mistakes fix them that's what it
254. 8:23takes to thrive this is what we see from
255. 8:25some of the biggest and best companies
256. 8:26in the world and theranos was not one of
257. 8:28those companies
258. 8:29they wanted the public relations the pr
259. 8:31and the cover of the magazines and
260. 8:32featured on cnbc
261. 8:34but they didn't want to put processes in
262. 8:36place they didn't want to do the work
263. 8:38and they didn't want to tell people that
264. 8:40you failed it's okay to fail you can't
265. 8:42break the law you can't deceive people
266. 8:44and you can't potentially hurt people
267. 8:45moreover the task of defending the
268. 8:47company's blood testing performance when
269. 8:49doctors called with complaints fell to
270. 8:51rosendorf wasn't a huge fan of it he
271. 8:53felt pressured to defend the blood test
272. 8:55in the face of inaccurate results and
273. 8:57rosendorf had to find explanations other
274. 8:59than the real runs real reasons why the
275. 9:02results were were wrong i was often
276. 9:04called upon to come up with reasons
277. 9:05other than test performance so this is
278. 9:07how good people end up in federal prison
279. 9:10this is a good people get fired so you
280. 9:12have someone who faced a real dilemma at
281. 9:14work he faced a pressure to perform a
282. 9:16pressure essentially to lie to justify
283. 9:19these inaccurate tests to find
284. 9:20explanations to justify them
285. 9:23and some people will rationalize though
286. 9:25i need my job i have stock options this
287. 9:28is how i advance my career this is the
288. 9:29way it works if we just do this the next
289. 9:32time it will be fine these the
290. 9:33rationalizations then of course the
291. 9:35opportunity would be
292. 9:36did he actually find the explanation so
293. 9:39getting called upon to do things that
294. 9:41are wrong we we often face that at work
295. 9:42and some bosses and senior executives
296. 9:45force their subordinates to do things
297. 9:47that may be unethical or wrong and to
298. 9:49his credit
299. 9:50um he didn't want to defend the company
300. 9:52it made him feel uncomfortable it didn't
301. 9:53comport with his moral compass
302. 9:55and you have to you have to admire him
303. 9:58you really have to admire him for that
304. 10:00continuing prosecutors he listed
305. 10:02elicited testimony that many complaints
306. 10:04were about the erratic results of acg
307. 10:07levels an essential hormone to indicate
308. 10:08pregnancy indeed prosecutors called to
309. 10:10the stand a patient whose theranos hcg
310. 10:13pregnancy test erroneously indicated she
311. 10:16was having a miscarriage confirmation
312. 10:17tests revealed that the test was wrong
313. 10:20and she carried her baby to term again
314. 10:22we talk about the potential prison term
315. 10:24here
316. 10:25it's not just going to be the loss
317. 10:26amount or the sophisticated means it's
318. 10:28the impact that it would have on someone
319. 10:29who you know
320. 10:31is pregnant she's told she's having a
321. 10:32miscarriage i mean as a
322. 10:34as a father myself i can only imagine
323. 10:36what my wife would feel if she had heard
324. 10:37that and i can't relate to it i'm a male
325. 10:39but you understand you empathize it's
326. 10:42terrible right and taking shortcuts
327. 10:44essentially cheating caused a lot of
328. 10:46stress and pain to a lot of people who
329. 10:48we may never hear from
330. 10:50but um i'm sure in some way they're
331. 10:52finding satisfaction in knowing these
332. 10:54people are being held accountable or
333. 10:56potentially being held accountable we
334. 10:58stop to hear from the defense and we
335. 10:59don't know what the jury's going to do
336. 11:01continuing brittany gold took the stand
337. 11:03in the trial of elizabeth holmes to say
338. 11:05the company's blood test inaccurately
339. 11:07said she had miscarried here we go
340. 11:09although the judge did not allow gold to
341. 11:11testify about the inaccurate test impact
342. 11:13on her the jury will likely imagine it
343. 11:15was very traumatic as i just alluded to
344. 11:17the reason for eliminating patients
345. 11:19testimony to just the facts of what
346. 11:20happened is to avoid undue prejudice
347. 11:23of homes rosendorf asked holmes he told
348. 11:26the jury for more time to address these
349. 11:28technical issues he wasn't quite ready
350. 11:29to lie and say that everything was fine
351. 11:31he needed more time he wanted to hire
352. 11:33more staff and improve trainings instead
353. 11:36holmes decided to continue with the
354. 11:38commercial launch by using conventional
355. 11:40blood analyzers not made by theranos
356. 11:42again wants the fame and the stock and
357. 11:44everything that comes with it didn't
358. 11:45want to scale back let's do it the right
359. 11:47way essentially she wanted to get in
360. 11:49five years where it takes 10 10 years
361. 11:51where it takes 20. you take shortcuts in
362. 11:53life you're going to pay the price
363. 11:54you're going to get punished as i
364. 11:56suspect she's going to continuing as we
365. 11:58wrap up this video the seventh one in
366. 12:00our series on the elizabeth holmes trial
367. 12:02of 2015. the wall street journal also
368. 12:05raised concerns about the accuracy of
369. 12:07this blood testing
370. 12:08technology based in part on what
371. 12:10rosendorf appealed to the paper when the
372. 12:13journal broke the news that this
373. 12:14technology was unreliable if theranos
374. 12:16was using non-theranose machines members
375. 12:19of the board naturally became alarmed
376. 12:22specifically one board member mattis mad
377. 12:24dogs he likes to be called had already
378. 12:26has already testified and additional
379. 12:29board members are likely to testify as
380. 12:30well i suppose when they do case studies
381. 12:32on their nose our team has also written
382. 12:34a case study on this in addition to the
383. 12:35videos
384. 12:37you're gonna see breakdowns of the board
385. 12:38how much they knew i think there's a lot
386. 12:40of social proof of this company when you
387. 12:42see
388. 12:42mattis and bill clinton and others
389. 12:44investing people presume they did their
390. 12:46due diligence they did their homework if
391. 12:47it's good enough for a former president
392. 12:48good enough for me who do i write a
393. 12:50check to so a lot of buzz a lot of
394. 12:51social proof
395. 12:52somebody had already proven the concept
396. 12:54so to speak by investing getting on the
397. 12:56board and you know there's been a lot of
398. 12:58board breakdowns over the years by some
399. 12:59of these i think the board at their dose
400. 13:01was making 150 grand a year
401. 13:03you can wonder to what degree the board
402. 13:04was holding these people
403. 13:06accountable emails and testimony from
404. 13:08the trial so far reveal that the board
405. 13:10pressed homes for answers in the wake of
406. 13:12the reports i think that's a good thing
407. 13:14doesn't always happens we look back on
408. 13:16scandals over the last two decades so i
409. 13:18like reading that the board was looking
410. 13:19to hold her accountable and get
411. 13:20questions holmes emailed the board a day
412. 13:23after the wall street journal article
413. 13:24and said their nose was close to getting
414. 13:26fda approval but the company could not
415. 13:28use its collection devices in the
416. 13:30meantime in fact the fda had denied
417. 13:32approval for the tiny blood collection
418. 13:34devices at the time which board members
419. 13:37did not know as we wrap up many board
420. 13:39members including mattis assumed that
421. 13:41theranos was using its proprietary
422. 13:43analyzers not third-party machines
423. 13:46naturally they felt blindsided as anyone
424. 13:48would until the wall street journal
425. 13:50reports began they were unaware of the
426. 13:51extent to which their nose machines were
427. 13:53malfunctioning
428. 13:54and accurate
429. 13:56board member william frist a former
430. 13:58senator a surgeon and the only board
431. 14:00member with real medical experience
432. 14:02wrote in 2015 integrity of lab data is
433. 14:04at the heart of everything nothing else
434. 14:06matters if we can't demonstrate that
435. 14:08quickly so to conclude the seventh video
436. 14:11in our elizabeth holmes
437. 14:13trial
438. 14:14we have to applaud uh rosendorf the
439. 14:16whistleblower for bringing this to the
440. 14:18wall street journal in 2015 for
441. 14:20addressing this failing technology and
442. 14:23somehow this reporter did a great job of
443. 14:25keeping him private uh until now and we
444. 14:28personally applaud john kerry who who
445. 14:30recently applauded him saying adam
446. 14:32rosendorf was my first and most
447. 14:34important source i couldn't have broken
448. 14:35the story without him hats off to his
449. 14:37integrity and his courage he's one of
450. 14:39the
451. 14:40heroes
452. 14:41in this in this story a lot of people
453. 14:44who joined theranos were real believers
454. 14:46as rosendorf said he he was he got into
455. 14:49that space and company to help people
456. 14:51and i'm sure it was devastating to him
457. 14:52to learn they weren't fulfilling their
458. 14:53mission
459. 14:54and to his credit he wasn't going to
460. 14:56allow it to continue and potentially get
461. 14:58swept into criminal conduct because our
462. 15:01team at prison professors knows too many
463. 15:03people who were in federal prison for
464. 15:04lengthy periods of time because they
465. 15:07came across wrongdoing they didn't stop
466. 15:09it they facilitated it or they
467. 15:12facilitated it at the urging of their
468. 15:14boss or senior partner
469. 15:16and they justified well it's my job my
470. 15:18recommend my mortgage was online my
471. 15:20health insurance was on the line my
472. 15:21bonus of promotion it's very easy as i
473. 15:23have said before to make the right
474. 15:25decision in federal prison when
475. 15:26taxpayers are paying your bills very
476. 15:28easy to make the right decision when
477. 15:30you're in a college classroom and others
478. 15:31may be paying your bills it's much
479. 15:33harder when you're in the real world
480. 15:35with real consequences for that we
481. 15:36dedicate this
482. 15:38youtube video to adam rosendorf and we
483. 15:40congratulate him for stepping up and
484. 15:42whistleblowing to tell the truth and
485. 15:44helping sure the people who break the
486. 15:45law are held accountable until our next
487. 15:48video thank you for listening to our
488. 15:50podcast and if you're watching this
489. 15:51video on youtube and if you find value
490. 15:53please like and subscribe i'm off to go
491. 15:56see my dodgers beat the cardinals
492. 15:57goodbye