Archive for the ‘fraud’ Tag
Bad Blood: Secrets and Lies in a Silicon Valley Startup reads like a mystery but is based on fact. John Carreyrou, a reporter for The Wall Street Journal, provides a thorough look at Theranos and its founder Elizabeth Holmes. Fraud and manipulation are the tools Holmes used to convince big name donors to invest in her startup that she boasted would radically change the way blood testing is done in the medical industry.
Holmes is portrayed as an attractive, brilliant Stanford University student who left school to pursue her vision of producing a compact, in-home blood testing device. In her early 20s she managed to create a company valued at more than $9 billion.
Suspense is created through Carreyrou’s extensive research and interviews indicating deceit, poor management and greed. His efforts to convey the truth are nearly thwarted multiple times by Holmes, Sunny Balwani (chief operating officer and Holmes’ boyfriend) and their attorneys. Further roadblocks include well-respected, leaders and business gurus who refused to consider Holmes as anything other than a medical-startup miracle worker. The board included, among others, former Secretary of State George Schultz and Gen. James Mattis, who later served as Secretary of Defense.
Despite the incredulity of many Theranos employees and a lawsuit by a vindictive former neighbor, Holmes was able to secure contracts with Walgreen’s and Safeway to place Theranos products in stores without producing a successful prototype.
Holmes acted on the theory that people believe what they want to believe. True, until they no longer can.
Bad Blood: Secrets and Lies in a Silicon Valley Startup
Four-and-a-half bookmarks
Alfred A. Knopf, 2018
339 pages (includes notes and index)
Red Notice by Bill Browder is a true-life tale involving financial investments, conspiracy, Russian intrigue and, ultimately, murder. A look at how U.S. laws are enacted is also included. A red notice is essentially an international arrest warrant. Putin tried, unsuccessfully, to have one placed on the author. The political climate with Russia makes this a timely read.
Browder recounts his experience as a foreign investor in Russia following the breakup of the Soviet Union. He discovers a motherlode, secures investors and founds his own capital management firm. Initially, the focus is on Browder’s financial acumen. Then, things get ugly for him and his associates when he exposes corruption in – surprise! – the Russian government.
Browder’s visa is revoked, but he’s able to covertly move his company’s holdings out of Russia saving his clients’ fortunes in the process. However, this isn’t where the author reveals his valor. That comes in the narrative’s final third as he seeks justice for the abuse and murder of his friend/attorney, Sergei Magnitsky, who revealed a multi-million dollar fraud committed by the Kremlin.
Browder’s efforts, along with assistance from U.S. government officials, helped put in place the Magnitsky Act, which, initially*, blocked Russian officials and business leaders from entering the United States and froze their assets held by U.S. banks.
Guilt motivates Browder’s actions, but the true hero of the story is Magnitsky who steadfastly believed truth and fairness would prevail.
With some exceptions, such as occasional extraneous details, the rapid-fire pacing makes Browder’s story engaging.
Red Notice: A True Story of Finance, Murder, and One Man’s fight for Justice
Four Bookmarks
Simon & Schuster, 2015
396 pages, includes notes and index
*The act was expanded in 2016 and now applies sanctions to human rights abusers worldwide.
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