0:02 elizabeth holmes once silicon valley's
0:04 fastest rising star
0:06 is now under the harsh glare of a very
0:08 different kind of spotlight as well
0:10 please raise your right hand she's
0:12 finally forced to answer to the
0:14 securities and exchange commission
0:16 as she's investigated for an alleged
0:19 elaborate years-long fraud
0:20 do you swear to tell the truth the whole
0:22 truth and nothing but the truth i do
0:25 suddenly the woman who always seemed to
0:26 have all the answers
0:29 we are the only lab company that is
0:31 actually really focused
0:33 on leading with transparency now had none
0:34 none
0:37 i i don't know specifically i'm not sure
0:39 i'm i don't know exactly i just don't
0:42 know with theranose's claims now under
0:44 the microscope did it concern you that
0:47 a number of tests weren't working
0:50 on this devices her carefully crafted narrative
0:51 narrative
0:53 began to unravel like those dramatic
0:55 claims she peddled to board members like george
0:55 george
0:58 schultz the former secretary of state
0:59 was theraness's
1:03 technology deployed in emergency rooms
1:05 hospitals and provider offices
1:09 no it was a fairness manufacturer device
1:12 ever deployed in
1:15 the battlefield was it ever deployed
1:19 in a medevac helicopter she was challenged
1:19 challenged
1:22 sentence by sentence on what she told
1:25 fortune in that star making cover story
1:27 there's a statement that theranus
1:28 currently offers more than
1:31 200 and is ramping up to offer more than
1:32 1 000
1:33 of the most commonly ordered blood
1:35 diagnostic tests all without the need
1:38 for syringes was that statement correct
1:40 i'm reading it now i don't think it is
1:42 and there was another significant detail
1:44 that she had been less than forthcoming
1:46 about were you and
1:47 sunnyvale wanted ever engaged in a
1:50 romantic relationship yes
1:54 when for a long period of time would you
1:56 say for the majority of that time for
1:57 you living with his homes
1:59 yes did you ever tell investors that
2:01 you've had a romantic relationship
2:04 no personally me talking to investors
2:05 one-on-one telling them
2:07 my relationship no i didn't it was
2:08 concealed from
2:11 the board it was concealed from the press
2:12 press
2:14 it was concealed from investors you
2:15 think it was intentional
2:17 that they hit it it was absolutely
2:20 intentional as revelations about
2:22 theranos started to unfold and the
2:24 divide between elizabeth's grandiose vision
2:25 vision
2:28 versus reality became clear now to the
2:29 stunning fall of a former ceo
2:31 the sec had enough to bring charges
2:32 against her
2:35 and soon so did the department of
2:37 justice elizabeth holmes and another
2:38 former executive
2:40 await a criminal trial they face up to
2:42 20 years in prison
2:44 elizabeth holmes is stepping down as the
2:46 chief executive officer
2:49 holmes pleaded not guilty by september 2018
2:50 2018
2:52 the company was officially out of
2:53 business how
2:56 big of a deal is this i think it's
2:59 probably the the most interesting fraud
3:00 case i've dealt with
3:03 bernie madoff would be second and you
3:04 think they're similar people
3:06 i think they're very similar people
3:08 smart charming
3:10 bullies elizabeth and her counsel did
3:12 not respond to our repeated requests for comment
3:13 comment
3:15 she denies any wrongdoing but sonny
3:17 balwani's attorney jeff coopersmith
3:19 agreed to join us for his first
3:22 in-depth on-camera interview if you were
3:23 going to give him a grade on the job he did
3:24 did
3:26 at theranos what would that grade be i
3:27 would give him
3:31 an a-plus for dedication and effort
3:32 but obviously when we look at this after
3:34 the fact and there's been a business failure
3:34 failure
3:36 and you know mister malwan is very sorry
3:38 about that but that's not fraud
3:40 it seems like a central component of
3:41 your case
3:43 is that theranos was on the right track
3:45 and if they had enough time
3:47 they would have gotten it 100 right i
3:49 think eventually the company would have
3:49 been a
3:51 great success if it had been allowed to
3:54 run when it comes to our health
3:57 people want to know it's 100 accurate
3:57 day one
4:00 they want to know that what's inside of
4:01 a walgreens or
4:04 at their doctor's office can actually do
4:06 what it says it will do you know rebecca
4:08 of course that's true
4:10 i think though the unfortunate thing is
4:11 that in our
4:13 system of health care there's mistakes
4:15 that are made every day
4:21 a lot of people will say fake it till
4:23 you make it make it till you make it
4:25 doesn't work in healthcare because
4:27 you're talking about people's health
4:30 so many people wind up in jail for such
4:31 little things
4:33 this is not a little thing and it's also
4:35 not only did they fool the investors
4:39 they fooled the media
4:42 they fooled patients they fooled doctors
4:45 but as elizabeth herself once declared
4:46 at a forbes conference
4:48 she is not a woman who will go down
4:49 without a fight
4:52 when you have that passion you will get
4:54 back up when you get knocked down
4:55 and you will get knocked down over and
4:58 over and over and over again and you win
4:59 by getting back up but i would start
5:01 this company over 10 000 times if i had to
5:02 to
5:07 hi everyone george stephanopoulos here
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