Politics - News Analysis

Theranos Founder Elizabeth Holmes Reportedly Suckered Betsy DeVos Out of $100 Million

I feel like someone who understood public schools could have avoided this.

Apparently, Betsy DeVos wasn’t just missing the qualification of having gone to public schools in order to lead the Department of Education. She was also missing some serious common sense.

According to Tuesday testimony in the wire fraud case against Silicon Valley “inventor” Elizabeth Holmes, the onetime billionaire was able to trick DeVos out of at least $100,000,000 worth of investments in Theranos, the biotech company that made her famous.

Theranos went out of business after investigations revealed that the technology the firm was behind, a portable blood-testing device that could get results for an array of ailments from a single finger prick, was bogus. Results were inaccurate if the device even returned any in some cases, and Holmes and her partners were busted after investigators learned that she knew the device didn’t work from the beginning.

But the inclusion of DeVos as one of those investors was, if not startling, at least disappointing. To learn that someone who once led our public schools was dumb enough to give $100 million to a firm that couldn’t even produce a working product just underscores what an awful pick she was to be in Trump’s cabinet.

Personally, I have mixed feelings about it: I hate knowing that our children were once at the mercy of a filthy rich woman who had no experience with public schools — neither she nor her children ever attended one — but I will admit to a little bit of schadenfreude after finding out she lost her family that much money on worthless technology.

I won’t say I’m smiling as I write this, but I also won’t say I didn’t laugh a little as I was reading about it.

It wasn’t just Betsy, of course. Holmes flew a handful of investors to Silicon Valley in order to take their money as well. According to Tuesday’s testimony from Lisa Peterson, DeVos’ private equity investment manager, Holmes was trying to gather funds from wealthy families in order to avoid having to take Theranos public, which would have been likely if her backing had come from medical firms or larger equity offices.

She couldn’t have that. After all, she was a fraud the whole time. Just like Betsy DeVos.

meet the author

Andrew is a dark blue speck in deep red Central Washington, writing with the conviction of 18 years at the keyboard and too much politics to even stand. When not furiously stabbing the keys on breaking news stories, he writes poetry, prose, essays, haiku, lectures, stories for grief therapy, wedding ceremonies, detailed instructions on making doughnuts from canned biscuit dough (more sugar than cinnamon — duh), and equations to determine the airspeed velocity of an unladen swallow. A girlfriend, a dog, two cats, and two birds round out the equation, and in his spare time, Drewbear likes to imagine what it must be like to have spare time.

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