Elizabeth Holmes: lessons and take aways for spotting frauds

Elizabeth Holmes, soon to be played by Jennifer Lawrence, conned her way to a CEO-ship of a billion dollar biomedical company without producing any evidence and I, like many people, am fascinated by her story. If you met her in her heyday, you’d probably remember the surprising baritone, how she always dressed in the same black outfit, the soulless unblinking void behind her eyes and her groundbreaking biotech promises that just never seemed to pan out in a timely fashion. She developed and honed a total front that many people never bothered to look past… and it’s this ability to see through a con that distinguishes scientists from suckers.
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It’s not a knock on suckers though. We, and other animals, are biologically programmed to respond to confidence displayed through eccentric cues and behaviors. When bee colonies search for new locations, the colonies make the decision based on a dance-a-thon demonstrated by the scout bees through their waggle dance. Poor scouts. Poor bees. Although it’s a pretty effective method, I’d imagine they’d make better decisions by conveying how much nectar and pollen and how many bears lie within a given radius.

In Science, as it is in life, the best way to protect yourself from a con is to continue asking questions while listening attentively and demanding evidence. If a person doesn’t answer the question asked, changes the subject, or refuses the question altogether then something is up. In Holmes’s case, she claimed to be guarding trade secrets which would’ve been fair enough in general, but not if she was seeking your time and money, or if as the documentary I saw claimed, she was taking people’s trust, safety and well-being into her hands.

I guess my summation take away is to recognize the signs and red flags of people who have devoted themselves to crafting a persona or gimmic instead of devoting themselves to honesty, transparency and integrity. You have the option to be a thinker, bees don’t.

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Thanks for posting this, I enjoy this topic and thinking about these issues. I’m going to present you with another view:

I have learned two things to be true in life (1) people are passive and (2) the same passive level of engagement prevents people from speaking up. In essence, people are weak.

We can all learn from “The Emperor Has No Clothes”. We should all aspire to be the small child that is willing to say, “what the heck are you talking about, the emperor is naked”. But the reality is that most people are not strong enough to have their own convictions, self confidence, intelligence, etc to be able to say, “No, this is wrong and I’m willing to stand by that and show that to other people”.

We see it time & again, in any number of situations where no one can stand up and be their own person and say that something is wrong - it’s just easier to go with the group. The Holmes situation is just one example of that, tons of red flags with tons of people seeing it along the way - not one person strong enough to put a stop to it.

So, I don’t think your discussion is about spotting the issue - that’s essentially being done - its about speaking up about the issue.

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Anecdotally, I can confirm that most people think they want to be the kind of person that will speak out, but in reality if people are comfortable enough they’ll rationalize a good reason why it’s “not worth it”. Though in the story the townspeople agree with the child and eventually speak out, in reality shams often manage to sustain themselves for far longer before the masses speak out.

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That’s exactly right, the “keyboard warriors” to some degree. It is so much easier to “go with the flow” that the excuses basically write themselves.

But, I do take pride in being both willing to speak out and being aggressive. Most people don’t recognize the benefits of being aggressive and willing to go against the grain; I’ve applied it in my personal and professional life with great results.

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The story of Theranos -

The term “pathological” comes to mind.

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Can I just point out how there wasn’t any attempt to verify the claims she made?

Like, it would be easy enough to run random samples through with known qualities as a control.

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Interesting conversation… But I’m going to throw another viewpoint. There was recently an incident at UTD where a pair of professors blew the whistle on a fraud being committed by some more senior faculty. The two that blew the whistle were totally run into the ground and it’s been a living hell for them since.

Sadly, all too often, those that call out this kind of stuff just end up being the targets of character assassinations because it’s easier for the company / administration / government to make it go away.

Its not lazy or weak, it’s legitimate fear of repercussions to their career, mental, and even physical well being.

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There was this legendary Greek dude named Socrates, who questioned everything. So much so, that the act of endlessly questioning is commonly known as the Socratic Method. This tends to get on the nerves of those in authority, making the decisions.

In the end, Socrates questioned his bad self, uttering the immortal words, “I drank what?”

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Hey, I saw that movie too!

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My favorite part of this entire story is her apparently lying about her Siberian Husky being a wolf. Added nothing to the grift, but she stuck with it anyway.

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Therein lies the weakness. You have to have a strong belief of “what is right is right” and be willing to stand up and fight for that. What may come of that is of no mind. You can’t see it because you posses the weakness :wink:

Interesting insight. It reminds me of a play I read in High School Nerd Club (President all 4 years!) called an “An Enemy of the People” by Henrik Ibsen. It describes what happens to a whistle blower and the different types of characters complicit in trying to silence him. The protagonist warns his town about how their natural springs, used for medical therapy tourism, have become infested with harmful bacteria. The idiot town mayor only thinks of the economy and wants things smoothed over quietly behind the scenes. The “badger” really goes after the protagonist directly and his children’s inheritance. And the “don’t rock the boat” guy won’t shut up about moderation and the proper procedure for discussion. Things end up badly for the hero and his family and the play closes on his statement “The strongest man upon the earth is he who stands most alone.”

I think there’s definite truth to your insight into complicity. But, employees in Holmes’s company were kept highly compartmentalized and the film even mentions one incident where samples were secretly taken out of the magic box and run down to the lab for testing in a demo for investors. So I hope that some of the scientists in her company had no way of knowing what was going on instead of giving in to their “weakness”.

I hope you will remain a strong person throughout life and always do the right thing. But Ian’s words really drive at the problem. Also, Ian is not a weak person by any means. Most people will have a breaking point when it comes to the well-being of their families or if they’re a few years from retirement. Good on you for standing up for what is right, but you might reflect on what you really had at stake in these past instances to prepare for life’s bigger challenges that will really test your mettle.

I wonder if pathological or compulsive liars actually believe their lies to be true. Holmes sticks to her stories still today. Have they descended into a state where they cannot actually discern the truth of their reality anymore because of years of habitual lying? I also wonder if these people ever succeed in the long run outside of politics.

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Being aggressive is not inherently better than being passive. It all depends on the circumstances.

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And, there is always the third option, which to neither be passive nor aggressive. By passive, I do mean “leadable”. You can be firm and unleadable without being aggressive.

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And the other problem we face is our reluctance to recognize our own dark predilections. When we start out with the assumption that people (all of us) are basically good, we are setting ourselves up for big loss or disappointment.

Human Psychology is a crazy thing. I’ll just leave these here.

Diffusion of responsibility. A situation in which a person is less likely to take responsibility for action or inaction when others are present.
The bystander effect. A phenomenon in which people are less likely to offer help when others are present.
Pluralistic ignorance. A situation in which the majority of a group internally reject a norm, but incorrectly assume most others accept it, so they go along with it.

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Wrong.

The fact that you believe this (and other people do too) is exactly why being aggressive works. The complacency & willingness to be passive is why the aggressive people win out.

Guess it depends on what you call aggression, and how you define winning out. I think your declaration is both simplistic and self serving. I don’t buy it, but you do. Win Win.

To be clear, I am in no way out to change your mind. You being passive serves my needs because I’m 100% comfortable being aggressive. So, please, carry on :slight_smile:

Perhaps a clarification on what ‘being aggressive’ means would help out a bit.

If by aggressive you mean assertive, than sure.

If by aggressive you mean getting up in peoples’ faces and yelling to shut them out, then that just makes you a dick.

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