Bad Blood

 

Bad Blood: Secrets and Lies in a Silicon Valley Startup
by John Carreyrou
339 pages
NonFiction

This may be particular to me, but I’ve always been fascinated by fraud. What makes someone decide to defraud their employer or friends? How can the fraud triangle theory (opportunity, motivation/pressure and rationalization) be applied to their situation? This was an interesting and timely book as federal charges make their way through court against fraudster Elizabeth Holmes, founder of Theranos. It was well written and an easy read, if a bit long in parts.

Using business savvy, intelligence, charisma, audacity, manipulation and lies, Holmes created a tech-based healthcare company that promised to revolutionize blood testing. She was once hailed as the next Steve Jobs and her stock in Theranos was valued at $4.5 billion. However, it was a scam of epic proportions. This book details how Holmes built her company as well as its eventual unraveling. In the process, it documents Holmes' astounding web of deception and lies.

I was amazed once again with the hubris and deception of silicon valley that worships at the altar of “disturbing” traditional business and emboldens a “fake it until you make it” mentality. Holmes was a college dropout who made ridiculous claims, yet they bought it hook-line-and-sinker. There was a certain amount of pleasure in seeing individuals receive their due comeuppance as the company failed. And yet, they almost got away with it! The author modestly includes his own (significant) role in investigating and exposing the company towards the end of the book. I am a big fan of the author!

The book did feel long towards the end and I felt personally cranky. I may have spent too much time in the icky environment of Theranos. It was striking to witness Holmes' abilities, privileged family connections and sheer audacity in action. To this day, she deflects responsibility for her actions. While facing the reckoning of 20 years in federal prison, her continued access to financial wealth was cemented last year upon marrying hotel heir Billy Evans.

RECOMMENDED FOR: People interested in fraud and/or silicon valley.