The Scams Of Elizabeth Holmes And Anna Sorokin

Many people have heard of major scams committed by Elizabeth Holmes and Anna Sorokin. Have you ever thought of how these two young women compare? Both of these young women were trying to be young millionaires and got caught up in the power. After getting caught defrauding many people including friends, investors, and the government; these ladies were put to a stop. However, their stories are different, their outcome was the same.

Both Elizabeth Holmes and Anna Sorokin broke the principle of honesty. Both women went out of their way to scam many people out of millions of dollars, just trying to make a dollar. Holmes broke the principle of honesty by falsely persuading many investors with her invention. She would bring in a couple of potential

After the test was run the investors would come back and read the test results from what they thought was the Theranos. Holmes went on to tell patients, investors, and employees false. results knowing, she was wrong. She had all her employees sign multiple documents stating they would not talk disrespectfully about the company, or they would be sued. After several employees stood up and voiced their opinions, a Wall Street Journal reporter published about her false statements regarding her blood test. Holmes took it upon herself to lie on national news sites about the false accusations from the Wall Street Journal. Assuming Elizabeth Holmes had no bad intentions with her company, Theranos, she could’ve avoided losing millions of dollars and prison time. Edison said, “I will not say I failed 1,000 times, I will say that I discovered there are 1,000 ways that can cause failure.” Elizabeth Holmes stated that quote during her documentary, yet after failing one time with the blood results, she gave up and ran through the normal lab tests. These stories

The Moral Hazard Theory is where the behavior of one party may change after the transaction has taken place. Holmes seems very honest and acted as if she knew how to run these machines and get the correct results. However, after the investors signed with her, she would use their money and still hand out false results. The same with Sorokin, she convinced the hotel staff that she was waiting on the paperwork for her trust fund and then she could pay them back. However, after the hotel staff let her stay for several months, she decided there was no point in paying them back. Both women could have been extremely successful if they would have changed just a few simple things. If Holmes would have taken the time to listen to her engineers' plans when they discussed making the “box” bigger to fit the necessary equipment, she would have gotten more accurate test results. Holmes could have also listened to her professor from Stanford University when she told her that her small invention would not work. She could have taken the information from her engineers and professors to perfect the small machine and she might’ve received accurate results. Holmes also could’ve come forth to the public about the inaccuracy of her machine and tried to fix it instead of scamming more investors for money. Elizabeth could have handled this situation completely different and could still be making money; however, she is now serving