ABC 20/20 and its various investigations into crime, people, and events have been quite insightful for its audience. With a similar objective, ‘Dropout’ takes an investigated glimpse into the life of Elizabeth Holmes and her company, Theranos, a blood-testing start-up that was considered revolutionary for our time. The company no longer exists as it was dissolved in the aftermath of the scandal.
The onslaught of events that led to the company’s fall was triggered by an anonymous tip to the journalist John Carreyrou. Following this, the world witnessed one of the biggest business frauds it has ever seen. Adjacent to Holmes, another figure who is equally accused in the company’s core malpractice is Ramesh Balwani. He was the President and Chief Operating Officer of Theranos.
Theranos was once famous for the alleged claim it made in being a revolutionary inventor of Edison, a device that would only require a drop of blood to conduct a series of tests with accurate results. This was considered groundbreaking at that time. However, the well-reputed company saw its fall into the pits, when Carreyrou’s articles shed light on what was really going in Theranos. This was followed by investigations at various levels, which made shocking conclusions. The company soon stretched its legs into bankruptcy.
Balwani came under fire for defrauding its investors by hiding the truth of its operations and the amount it was making in a year. Hiding profits and manipulating test findings, resulted in both Holmes and Balwani being accused of securities fraud for years by SEC. In addition, they were also indicted with nine counts of wire fraud and two counts of conspiracy to attempt wire fraud.
Ramesh Balwani and Elizabeth Holmes
The two have come under immense scrutiny for being involved in a romantic relationship without informing their investors. In addition, also committing fraud that spanned over several years since the inception of the company. According to an article by CBS News in which one of the employees talked about Balwanai, he was quoted to be rude with the company’s staff and would fire scientists if they failed to produce desired test results. This dominating figure was involved with Holmes from her days in college, where they met. Balwani, who divorced his wife later, was believed to be romantically involved with Holmes since 2003.
Where is Ramesh Balwani Now?
The prosecutors in the trial alleged that both Holmes and Balwani took deliberate measures to conceal their relationship. To that effect, they also scammed everyone, including their key investors and clients. The two are set to face separate trials for the crimes they committed in their different designations within the same company. Ramesh Balwani seems to be keeping a low profile in the aftermath of the scandal. Both their cases are awaiting trails that will commence in July 2020. (Featured Image Credit: Bloomberg.com)
Read More: Where is Elizabeth Holmes Now?