UPDATE: Theranos founder Elizabeth Holmes sentenced to 11 years in jail | 60 Minutes Australia — Transcript

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1. 0:00for more than a decade Elizabeth Holmes
2. 0:03spun the world a Despicable bloody lie
3. 0:07she claimed to have invented a medical
4. 0:09miracle a machine which with a tiny drop
5. 0:12of blood could diagnose Myriad diseases
6. 0:16her deceit fooled many wealthy investors
7. 0:18and not only made her the darling of
8. 0:21Silicon Valley but also a billionaire
9. 0:25not anymore though yesterday a
10. 0:27California Court sentenced Elizabeth
11. 0:29Holmes to 11 years in prison for fraud
12. 0:33[Music]
13. 0:37it's the day Elizabeth Holmes has done
14. 0:40almost everything to avoid is there
15. 0:43anything that you want to say to the
16. 0:44investors now finally silicon Valley's
17. 0:48former pinup girl has no choice but to
18. 0:51face her Reckoning you plan to make any
19. 0:53statements to the judge to learn her
20. 0:55fate for defrauding investors of 144
21. 0:59million US dollars
22. 1:00[Music]
23. 1:03four nail biting hours later the court
24. 1:06delivers the news Elizabeth Holmes has
25. 1:09been sentenced to 11 years in jail
26. 1:12her crimes exposed by the courage of
27. 1:16whistleblowers
28. 1:17I'm very very proud of the role I've had
29. 1:19in cooperating with the government to
30. 1:22bring Justice in this case I think I
31. 1:24very effectively spoke the truth and it
32. 1:26exposed one of the most fiendish kind of
33. 1:28plots in the history of healthcare
34. 1:30anything you want to say Dr Adam Rose
35. 1:33endorff was the star witness in the
36. 1:36trial of theranos founder Elizabeth
37. 1:37Holmes a trial which with all its twists
38. 1:40and turns has captivated the world
39. 1:45as former lab director of theranos he
40. 1:48had the inside view of a company that
41. 1:50promised a revolution in blood testing
42. 1:52but was exposed to be a sham
43. 1:56foreign
44. 1:57[Applause]
45. 2:00[Music]
46. 2:03experienced the first warning signs in
47. 2:062013 when he was recruited to join the
48. 2:09healthcare startup by Holmes and
49. 2:12theranos coo Ramesh Sunny balwani
50. 2:16Elizabeth's secret lover at the time
51. 2:20did you feel quite enamored by Elizabeth
52. 2:22and sunny did you find them to be
53. 2:24impressive when you first joined I found
54. 2:27Elizabeth to be actually very Charming
55. 2:29but also very enigmatic
56. 2:31and I honestly found Sunny to be a bully
57. 2:35and then Elizabeth she only wanted to
58. 2:37know one thing for me which is could I
59. 2:39be faithful could I be
60. 2:41could I keep a secret basically
61. 2:44did that strike you as unusual to be
62. 2:46asked if you could keep a secret
63. 2:48it did it made me wonder what was under
64. 2:50the covers really
65. 2:51[Music]
66. 2:53you've testified
67. 2:54occasionally it was revealed at trial
68. 2:56that Dr rosendorf went from new recruit
69. 2:59to the critical secret Source whose
70. 3:02background briefings allowed the Wall
71. 3:04Street Journal to crack the theranos
72. 3:06fraud that claims by homes in balwani
73. 3:10they could use just a pin prick of blood
74. 3:12too cheaply and accurately test for 200
75. 3:16diseases at a time using a
76. 3:18groundbreaking miniature mobile lab was
77. 3:21a lie and that they're wildly and
78. 3:24dangerously inaccurate results had been
79. 3:26covered up
80. 3:27[Music]
81. 3:29my therapist at the time actually
82. 3:31thought that I was crazy because who
83. 3:33wouldn't you know here's the sort of
84. 3:35Junior doctor saying that the greatest
85. 3:37success story in history is a fraud
86. 3:39[Music]
87. 3:41this is what happens when you work to
88. 3:44change things and first they think
89. 3:47you're crazy then they fight you and
90. 3:48then all of a sudden you change the
91. 3:50world
92. 3:51I'd like to welcome Elizabeth Holmes the
93. 3:53real treat the incredible Elizabeth
94. 3:55Holmes at its height everyone wanted the
95. 3:59success to be real everyone wanted homes
96. 4:02who so unashamedly modeled herself on
97. 4:05Apple Steve Jobs to become silicon
98. 4:08Valley's first female billionaire
99. 4:11there are people in this world who
100. 4:13revolutionize Our Lives Coco Chanel
101. 4:15Steve Jobs Bill Gates Walt Disney and
102. 4:17Elizabeth Holmes mark my words
103. 4:22theranos valued at nine billion dollars
104. 4:26folded under the weight of the truth
105. 4:29disclosed by Brave whistleblowers
106. 4:32the Fall From Grace was extraordinary
107. 4:36you don't have the right to jeopardize
108. 4:38Patients health because you want to be
109. 4:40famous figure in Silicon Valley you want
110. 4:42to be the new Steve Jobs you don't have
111. 4:44the right to experiment with people's
112. 4:46health
113. 4:47[Music]
114. 4:50retired biotech executive and cough sill
115. 4:54sat in on the trial almost every day
116. 4:56unable to drag herself away from the at
117. 4:59times confronting and always captivating
118. 5:02circus
119. 5:04I knew a lot of people that had worked
120. 5:07at theranos and had followed the story
121. 5:08for a long time so I'm just really
122. 5:11fascinated with The Emperor's New
123. 5:13Clothes aspect of the story
124. 5:17back in 2006 Elizabeth Holmes took Ann
125. 5:20out for lunch Holmes wanted Anne to work
126. 5:23for her as a consultant at theranos but
127. 5:26the scientist wasn't convinced
128. 5:30with your expertise when you heard those
129. 5:33Ambitions did you think that this was a
130. 5:36pipe dream or was this a holy grail of
131. 5:39the work you do so I have a PhD in
132. 5:41chemical engineering and I was really
133. 5:44surprised and skeptical for me and other
134. 5:47people in the field to believe it we
135. 5:48would have had to see a really
136. 5:50interesting invention because yeah all
137. 5:54the rest of us were very far away from
138. 5:55thinking that could be done
139. 5:58as follows please raise your right hand
140. 6:01do you swear to tell the truth the whole
141. 6:03truth and nothing but the truth I do
142. 6:06but home's greatest invention was the
143. 6:09sophisticated fiction she created to
144. 6:11Hoodwink investors and patients
145. 6:15the woman that you saw on the stand at
146. 6:18her own trial how did she strike you
147. 6:21then I was amazed I mean absolutely
148. 6:23amazed at how poised and sort of a
149. 6:27perfect witness she is for being under
150. 6:29these accusations and having evidence
151. 6:32that's so negative and damning to her
152. 6:35just unbelievably poised in a way that's
153. 6:40unhuman to me like most people I know
154. 6:43couldn't couldn't or wouldn't be like
155. 6:45that was there any remorse with that was
156. 6:47there any regret and he had no
157. 6:50acceptance of wrongdoing no how do you
158. 6:53take the defense line that the collapse
159. 6:56of theranos really was about mistakes
160. 6:59not malice it was never about hurting
161. 7:02anybody or fleecing anybody yeah no I do
162. 7:07not buy that at all I think they really
163. 7:10systematically told lies that they knew
164. 7:13weren't true
165. 7:17from failed invention to reinvention
166. 7:20former Insider Dr Adam rosendorf has
167. 7:23seen it all over the last nine years
168. 7:25most recently he's witnessed Elizabeth
169. 7:28Holmes shift from a superstar scientist
170. 7:31and Powerful businesswoman to a fragile
171. 7:34victim as she's walked into court
172. 7:36flanked by her current partner and
173. 7:39mother
174. 7:40I never saw her as somebody who needed
175. 7:42hand-holding
176. 7:43she's a shell of herself but at the same
177. 7:45time she's she's essentially
178. 7:47Unapologetic
179. 7:49I mean during the trial she was staring
180. 7:51at me
181. 7:52with daggers like she's staring right
182. 7:54through me as if she wanted to say to me
183. 7:56you know how could you
184. 7:58people don't even know that they have
185. 8:02a basic human right to be able to get
186. 8:05access to information about themselves
187. 8:09do you have any reaction to your guilty
188. 8:12burden
189. 8:14the heims trial finished in January this
190. 8:16year with homes convicted of fraud she
191. 8:20remained on bail awaiting sentencing but
192. 8:22just eight weeks ago two new bombshells
193. 8:27did you think oh no here we go she's
194. 8:31avoided jail it's a mistrial we've got
195. 8:34to start all this again I definitely
196. 8:36thought that when I first heard it uh
197. 8:38back to the oh you cannot make this
198. 8:39stuff up right here's one more twist
199. 8:41that you're like oh my gosh can't
200. 8:43believe that
201. 8:54yesterday the founder of the healthcare
202. 8:57startup theranos Elizabeth Holmes was
203. 9:00sentenced to 11 years in jail for
204. 9:03defrauding investors of 144 million US
205. 9:06Dollars
206. 9:08it's a sentence that brings no regrets
207. 9:11for Dr Adam rosendorf the former lab
208. 9:14director and whistleblower whose
209. 9:17testimony helped put Elizabeth Behind
210. 9:19Bars
211. 9:20I don't have empathy for Elizabeth at
212. 9:22all I think she's the only person who
213. 9:24can help herself
214. 9:26I don't think even after she serves a
215. 9:28sentence necessarily that there will be
216. 9:30any great
217. 9:31Epiphany for her
218. 9:33Dr rosendorf may have no empathy for
219. 9:37Elizabeth Holmes but his empathy for her
220. 9:3918 month old son very nearly handed
221. 9:42homes a get out of jail card
222. 9:45after six days on the stand and after
223. 9:48intense cross-examination Adam made the
224. 9:51bewildering decision in August to
225. 9:54approach Elizabeth Holmes a decision
226. 9:56that could have led to a mistrial can
227. 10:00you explain what happened why did you
228. 10:02end up going to Elizabeth Holmes's house
229. 10:04what was the point of that
230. 10:07um I was feeling a lot of um
231. 10:10guilt basically at the prospect of her
232. 10:13young child growing up without a mom
233. 10:15what was your intention
234. 10:18merely to
235. 10:22have her acknowledge what had happened
236. 10:24in some way and her her role in it
237. 10:28to express sympathy towards her for for
238. 10:30the fact that her young kid would would
239. 10:32grow up alone basically for a big chunk
240. 10:34of their lives
241. 10:35did you at any point think
242. 10:38or understand the risk of what you were
243. 10:40doing that this could upend everything
244. 10:43no I wasn't really thinking about that I
245. 10:46wasn't I was just wanting to talk to her
246. 10:48as a human being so and so now that you
247. 10:51do know
248. 10:52how do you view what you did
249. 10:55um ill-advised
250. 10:56[Music]
251. 10:59Adam didn't get to see Holmes but he did
252. 11:02speak to her partner and father of her
253. 11:05child Hetalia Billy Evans
254. 11:08Holmes lawyers appealed to the judge to
255. 11:10overturn the guilty verdict claiming Dr
256. 11:13rosendorf had told Billy he was made to
257. 11:16embellish his testimony
258. 11:18the suggestion was that you had been
259. 11:21pressured into painting things worse
260. 11:24than they really were at theranos at the
261. 11:26time that's what the defense put forward
262. 11:28is there any truth to that were you
263. 11:30asked by prosecutors to make it look
264. 11:32worse no I the facts spoke for
265. 11:35themselves I didn't need to invent
266. 11:37anything or lie up there I didn't need
267. 11:39to I just needed to be truthful
268. 11:43also argued to the court Dr rosendorf's
269. 11:47actions put his mental health in
270. 11:49question which made his entire testimony
271. 11:52unsafe but just a week and a half ago
272. 11:55the judge found there was no need for a
273. 11:58new trial
274. 12:00to have your mental health cast into
275. 12:03some sort of Doubt which then would cast
276. 12:06your entire testimony into some sort of
277. 12:08Doubt what was that like I was an
278. 12:11affront to my dignity it was
279. 12:13um it was Despicable
280. 12:16it was I was shocked and disgusted do
281. 12:19you regret coming forward do you regret
282. 12:23your role in this no I did the right
283. 12:25thing period I don't feel regret no
284. 12:28as difficult as it was
285. 12:30and it was like opening a can with it
286. 12:33with a fork
287. 12:34um
288. 12:36I I don't feel any regret whatsoever
289. 12:40I found him believable that he really
290. 12:43wanted to do the right thing for
291. 12:45patients and to do quality work and that
292. 12:48he was just really torn apart
293. 12:51watching on in court day by day was
294. 12:54retired biotech executive and cough sill
295. 12:58who dismisses much of what Holmes had to
296. 13:01say in her defense as a cynical and
297. 13:03desperate attempt to stay out of jail
298. 13:06including revealing she'd been raped as
299. 13:09a student plus the allegation she was
300. 13:12coercively controlled by her former
301. 13:14partner and CEO of theranos Sunny
302. 13:17balwani
303. 13:19I think the domestic abuse and the
304. 13:22allegation or that she said she was
305. 13:24raped at Stanford definitely gets
306. 13:27sympathy but you know once you think
307. 13:30that someone has committed fraud and is
308. 13:33capable of of really just straight out
309. 13:36lying to people it makes you
310. 13:39suspicious of all the other angles in
311. 13:43order to get a benefit like a lighter
312. 13:45sentence any comment at all to the
313. 13:48investors most also of you the need the
314. 13:51homes Camp had to reveal to the court
315. 13:53that Elizabeth recently found her adored
316. 13:56pet dog dead as a desperate grab for
317. 13:59sympathy raising greater Ayah is the
318. 14:02timing of Elizabeth's second pregnancy
319. 14:04first noticed just a month ago
320. 14:14in an 11th Hour plea for leniency the
321. 14:17judge was sent photos on Friday of homes
322. 14:19as a new mum to her firstborn
323. 14:23she became pregnant with the first child
324. 14:25right before she went to trial now she's
325. 14:28pregnant with a second child right
326. 14:30before sentencing that cannot be applied
327. 14:33to get later sentences and I I mean it's
328. 14:36sad about her dog but that seems
329. 14:38unrelated to the fraud and people paying
330. 14:42a debt to society
331. 14:44Elizabeth Holmes will be free until late
332. 14:48April next year when she has to
333. 14:50surrender herself to jail it's expected
334. 14:53she will appeal even so Holmes
335. 14:56conviction and now her pending
336. 14:58incarceration has given whistleblowers
337. 15:01like Dr Adam rosendorf a new sense of
338. 15:04Freedom how much regret if any do you
339. 15:07have Adam of ever coming across theranos
340. 15:10I think to a large extent many people
341. 15:12were screwed the minute they set foot in
342. 15:15in that sort of prefab smelly building
343. 15:17in in Palo Alto
344. 15:19you know the day I decided to quit
345. 15:22was the day that I climbed out of the
346. 15:24pit of theranos towards the sunshine
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