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    Putting Fraud Before Family

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    diana.elchaar
    This document discusses the Theranos fraud scandal and the role of various individuals involved. It notes that there were early signs of fraud at Theranos, as tests results were inconsistent and quality control procedures were not followed. It describes CEO Elizabeth Holmes as portraying an image of revolutionary technology while providing no clear explanations and banning information sharing. The document argues that while investors and Walgreens should have done more diligence, Theranos used deceptive claims. It suggests George Shultz sided with Theranos due to conflicts of interest and family relationships. Finally, it says whistleblower Tyler Shultz demonstrated bravery, integrity, resilience and sacrifice like other whistleblowers.

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    Putting Fraud Before Family

    Uploaded by

    diana.elchaar
    66 views3 pages
    This document discusses the Theranos fraud scandal and the role of various individuals involved. It notes that there were early signs of fraud at Theranos, as tests results were inconsistent and quality control procedures were not followed. It describes CEO Elizabeth Holmes as portraying an image of revolutionary technology while providing no clear explanations and banning information sharing. The document argues that while investors and Walgreens should have done more diligence, Theranos used deceptive claims. It suggests George Shultz sided with Theranos due to conflicts of interest and family relationships. Finally, it says whistleblower Tyler Shultz demonstrated bravery, integrity, resilience and sacrifice like other whistleblowers.

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    Discussion of the fraud case

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    This document discusses the Theranos fraud scandal and the role of various individuals involved. It notes that there were early signs of fraud at Theranos, as tests results were inconsistent and quality control procedures were not followed. It describes CEO Elizabeth Holmes as portraying an image of revolutionary technology while providing no clear explanations and banning information sharing. The document argues that while investors and Walgreens should have done more diligence, Theranos used deceptive claims. It suggests George Shultz sided with Theranos due to conflicts of interest and family relationships. Finally, it says whistleblower Tyler Shultz demonstrated bravery, integrity, resilience and sacrifice like other whistleblowers.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    66 views3 pages

    Putting Fraud Before Family

    Uploaded by

    diana.elchaar
    This document discusses the Theranos fraud scandal and the role of various individuals involved. It notes that there were early signs of fraud at Theranos, as tests results were inconsistent and quality control procedures were not followed. It describes CEO Elizabeth Holmes as portraying an image of revolutionary technology while providing no clear explanations and banning information sharing. The document argues that while investors and Walgreens should have done more diligence, Theranos used deceptive claims. It suggests George Shultz sided with Theranos due to conflicts of interest and family relationships. Finally, it says whistleblower Tyler Shultz demonstrated bravery, integrity, resilience and sacrifice like other whistleblowers.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    Putting Fraud Before Family

    Diana El Chaar

    1. Were there signs that Theranos was engaged in fraud before the scandal broke?

    Yes, there were many indications that Theranos was involved in fraudulent

    activity prior to the spread of the controversy. Tyler Shultz made the enlightening

    discovery that the Edison blood testing technology utilized by the corporation gave

    findings that were wildly inconsistent from the same blood sample. Some of the findings

    were disregarded by the corporation, and it made exaggerated assertions regarding the

    precision of its testing. In addition, Shultz discovered that the quality control procedures

    for blood-testing devices were not followed. I worked in quality control for a Biotech

    company and quality control is to be taken very seriously, someone could get hurt if the

    procedures are not followed. The corporation's fixation with secrecy and threats to

    workers who spoke out were further indicators that the company was engaging in fraud.

    2. What shadows did CEO Holmes cast?

    CEO Elizabeth Holmes evoked feelings of dishonesty and arrogance. She

    positioned herself as a charismatic and forward-thinking leader, frequently drawing

    parallels between herself and Steve Jobs, adopting his managerial style and dressing

    style. In his marketing, Holmes portrayed Theranos as possessing cutting-edge

    blood-testing technology that had the potential to transform the world. Nevertheless, she

    did not provide a clear explanation of how the technology operated, and it was

    completely banned for staff to share knowledge with one another. Even when presented
    with proof of flawed testing and findings that were purchased from outside sources,

    Holmes continued to defend the firm.

    3. Do you fault investors for not doing enough investigation into Theranos before

    investing? Do you fault Walgreens for partnering with Theranos?

    Investors and Walgreens share some of the blame for the fact that they did not

    perform exhaustive due diligence prior to investing in or collaborating with Theranos.

    There is a possibility that investors might be held accountable for their failure to conduct

    a more thorough investigation of the company's claims and technologies. Having said

    that, it is of the utmost importance to realize that Theranos utilized misleading strategies

    in order to acquire funding and collaborations. When it came to the certification and use

    of the Edison machine by significant organizations, Holmes made comments that were

    without foundation. These deceptive claims may have persuaded investors and

    Walgreens to believe something that is not true.

    4. Why do you think George Shultz sided with the company instead of his

    grandson?

    I think that George Shultz chose to support the corporation rather than his

    grandson for a number of different reasons. To begin, there was a conflict of interest

    due to the fact that George Shultz was a member of the board of directors for Theranos.

    It is possible that he would have placed a high focus on safeguarding the corporation's

    reputation. The second possibility is that he was under the impression that Holmes'

    description of Tyler was "unreasonable" and that he believed that supporting the

    corporation was in the family's best interest. Furthermore, it is possible that George
    Shultz did not know the magnitude of the deception at the time. There is a possibility

    that his decision was impacted by factors such as family relationships, loyalty to the

    organization, and a lack of awareness.

    5. What qualities does Tyler Shultz share with other whistle-blowers?

    Tyler Shultz shares several qualities with other whistleblowers. In the first place,

    he showed bravery by coming out with proof of misconduct within his own company,

    despite the risks that were involved. A second demonstration of his dedication to ethical

    conduct was the fact that he refused to acknowledge fraudulent acts. The third point is

    that Tyler showed resilience by continuing to explore the truth despite the pressure from

    the judicial system. In conclusion, he was subjected to personal and financial

    consequences, which serves to illustrate the sacrifices that individuals make in order to

    expose corporate misbehavior for the public benefit.

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