The ex-Theranos employee who blew the whistle on fraud at the blood-testing company where his grandfather — former Secretary of State George Shultz — was a board member says he popped a bottle of Champagne when he heard of Elizabeth Holmes’ conviction.
Tyler Shultz stated that he felt vindicated after the jury in San Jose heard the federal case against Holmes. They deliberated for three days, and returned guilty verdicts Monday on four counts each of fraud.
“All of a sudden, it was just a weight was lifted,”Shultz answered National Public Radio’s question about his reaction towards the guilty verdicts. “It’s over. I can’t believe it’s over.”
He said that he then decided that it was time for him to uncork some bubbly together with his loved ones.
“My family said, ‘Come on down — we’re popping Champagne. We’re celebrating,’”He said.
Whistleblower Tyler Schultz worked for Elizabeth Holmes’ Theranos after graduating from Stanford, but said he soon realized her blood-testing startup was a fraud.Both: Getty Images
Holmes and her company were accused by investors, doctors, and patients of defrauding them by falsely claiming that their product could perform at-home blood tests using a finger prick or a technological device that would scan blood.
Holmes, 37 was found guilty on three counts of wirefraud and one count each of conspiracy to commit wirefraud. The jury could not reach a unanimous verdict on three other fraud charges.
Holmes, who cultivated a reputation as a rising star in the world of tech and who drew comparisons to pioneers like Steve Jobs, faces up to 20 years in prison for each of the four charges on which she was convicted, though it’s likely she will serve less time, legal watchers have said.
Shultz, grandson of the late secretary of state and Theranos Board member, joined Theranos in 2011 to work as an intern. After studying biology at Stanford University, he was also a Stanford University biology major.
An ex-employee of Theranos who alerted regulators about fraud at the company claimed he popped a glass of champagne after a jury returned guilty verdicts for Elizabeth Holmes, founder, on Jan.
He was fascinated by the idea of working with Holmes. Holmes sold him a new technology that would allow people to perform blood tests at home using a finger poke and a device she created called “The Holmes Device.” “Edison.”
“She instantly sucked me into her vision, and I asked her, ‘Is there any way I can come work at Theranos as an intern after my junior year?”He said.
At the age of 22, Shultz was eventually hired as a full-time staffer, but he quit just eight months later after he realized that the company’s claims about the Edison did stand up to scrutiny. “There is nothing that the Edison could do that I couldn’t do with a pipette in my own hand,”He said.
Shultz stated that he and other employees realized that the company was misrepresenting blood tests. “It was clear that there was an open secret within Theranos that this technology simply didn’t exist,” Shultz said.
Tyler Shultz, 31, the grandson of the late former Secretary of State and Theranos board member George Shultz, said his grandfather didn’t believe him when he first alleged that the company was engaged in fraud.
He used an alias to alert the New York State Department of Health to the fact that something was not right.
Shultz, Erika Cheung and Adam Rosendorff, whistleblowers at other companies, spoke with John Carreyrou, Wall Street Journal journalist, about what they knew.
Shultz said his late grandfather didn’t believe him when he told him that the company’s claims were bogus. “He said Elizabeth has assured me that they go above and beyond all regulatory standards,” Tyler recalled. “‘I think you’re wrong’ is what he told me.”
George Shultz, who was Ronald Reagan’s top diplomat, recruited other luminaries like Henry Kissinger, former Defense Secretary William Perry and former Sen. Sam Nunn, to the company board.
Tyler Shultz said he tried to salvage his grandfather’s reputation by persuading him that the company’s claims were fraudulent, but to no avail.
The former Secretary-of-State George Shultz was seen in 1985 as he was on Theranos’ board when his grandson Tyler began working there.
“I said, ‘I know you brought all your friends into this, and you feel like you need to stay there to protect your friends, but there’s still an opportunity for you to get them out, too,’” Tyler said. “‘You can lead the way for the board to do the right thing and hold Elizabeth accountable.’”
George Shultz was killed in February of last.
Tyler Shultz stated that Holmes hired private detectives to follow him after he was exposed as a whistleblower. He also claimed that Holmes’ lawyers tried to intimidate him.
Shultz claimed he was there to see closing arguments, but he mostly followed the trial from his San Francisco apartment via social media.
Today, Shultz runs his own biotech startup focusing on women’s fertility issues.