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00:00John Regas was arrested and led into the streets of Manhattan in handcuffs.
00:04Federal authorities accused members of the Regas family of hiding debt.
00:08Welcome to WatchMojo, and today we're discussing the corporate execs who drove their companies straight into disaster.
00:15I have a small portfolio, but I don't really watch the stock market on a day-to-day basis.
00:20Number 20, George Shaheen, web van.
00:23You have the right to come home from work and find something good waiting for you in the fridge.
00:28Imagine inventing Instacart more than 10 years before the real Instacart actually came to be.
00:34Web van could have been a billion-dollar idea if its own leadership hadn't screwed things up so badly.
00:40The company began operating in 1999, taking grocery orders online and delivering them super fast.
00:47Orders are processed by our web servers, then routed to the distribution center for fulfillment.
00:52Unlike today's grocery delivery services, web van had its own warehouses full of food instead of shopping orders from Walmart
01:00or Target.
01:01The problem is that Shaheen and other execs had no experience running a supermarket, and had no idea that they
01:07ran on such small margins.
01:09Web van quickly racked up plenty of sales, but its costs were way too high, and it never turned a
01:15profit.
01:15The company folded in 2001.
01:18The web van system isn't just a convenient delivery alternative for the consumer, it's a better way of doing business.
01:24Number 19, Trevor Milton, Nikola Corporation.
01:28If you think this company sounds like a rip-off of Tesla, you're not far off.
01:33Milton founded Nikola in 2014 and pitched a concept for a semi-truck powered by natural gas,
01:39though the design was later changed to use hydrogen fuel cells.
01:42In December 2016, Nikola demoed a supposedly fully functional model, but the presentation was a lie.
01:50The truck didn't actually work.
01:52But it took years and years to get here.
01:54This isn't just a pusher like a lot of vehicles.
01:57Milton started taking orders for the vehicle anyway, but by 2020, journalists and financiers started digging into Nikola Corp.
02:04It turned out that nearly everything Milton had claimed about Nikola's trucks was a lie.
02:09Nikola shares are tumbling after a short seller called the company, quote, an intricate fraud built on dozens of lies.
02:16He was later found guilty of fraud and sentenced to four years in prison, but was pardoned by President Donald
02:22Trump after donating almost $2 million to Trump's campaign.
02:26The company's founder, Trevor Milton, was convicted of fraud in 2023 for exaggerating claims about the vehicle's performance.
02:33Number 18, Al Dunlap, Sunbeam.
02:36This scandal should be a lesson in doing your diligence before hiring a CEO.
02:41Dunlap loved closing factories and laying people off so much, he was nicknamed Chainsaw Al.
02:47Such turnarounds earned him the nickname Chainsaw Al ignited a debate on the issue of corporate responsibility.
02:54He became CEO of Sunbeam, which made small household appliances in 1996.
03:00Sales shot up in 1997, as did the company's stock price.
03:04But it was all a scam.
03:05Dunlap had been cooking the books, over-reporting Sunbeam's losses in 1996 to make its turnaround seem more impressive.
03:12He'd also engaged in illegal sales tactics with merchandisers and other shenanigans to conceal Sunbeam's financial problems.
03:20Dunlap was fired in 1998, and Sunbeam went bankrupt in 2001.
03:25It later came out that he'd also committed accounting fraud in the 70s while president of a New York paper
03:31mill.
03:31My philosophy of business, you're in business to make money for the shareholders who take all the risk.
03:39Number 17, Archie McArdle, international harvester.
03:42Don't mess with labor unions.
03:44This farm equipment manufacturer made record profits in 1977 thanks to McArdle's aggressive cost-cutting.
03:51But while he was scaling back production and laying off workers, he was taking home one of the highest salaries
03:57in the country for his CEO at the time.
03:59Employees weren't impressed.
04:01In 1979, after McArdle's $1.8 million bonus was announced, the United Auto Workers called a strike.
04:08McArdle couldn't have handled it worse.
04:11He refused to compromise, figuring they'd be forced to cave eventually.
04:15He was wrong.
04:16The strike lasted 172 days, and the union ultimately came out on top.
04:22The company, meanwhile, lost more than $600 million.
04:26McArdle was fired, and international harvester sold off most of its assets, becoming defunct by 1985.
04:33Number 16, Denis Kozlowski, Tyco.
04:36He made $100 million a year and still decided to defraud his own company.
04:41Kozlowski became CEO of this security systems business in 1992, and under his leadership, Tyco thrived.
04:48However, during his 10 years in the role, Kozlowski was secretly funneling tens of millions of dollars into his own
04:55accounts.
04:55He illegally used company money to pay for all kinds of over-the-top purchases,
05:00like his $30 million house with a $6,000 shower curtain that the media couldn't stop talking about.
05:06Decorations for the New York apartment became classic tabloid headlines, mocking the CEO's taste and his greed.
05:15Along with Tyco CFO Mark Swartz, Kozlowski was accused of stealing more than $150 million.
05:22In 2002, the Manhattan District Attorney's Office indicted Kozlowski for evading over a million dollars in sales tax, and he
05:31resigned as CEO.
05:32And, unlike most ultra-wealthy people, he actually paid the price.
05:37He served over six years in prison and had to pay back every penny he earned from Tyco.
05:42Donald Trump called your behavior tacky.
05:45Tacky? Tacky from Donald Trump?
05:48From Donald Trump.
05:49Wow.
05:50Number 15, John Regas, Adelphia Communications.
05:54Regas did what Denis Kozlowski did, but he brought the whole family in on the fraud.
05:58Regas and his brother Gus founded cable TV provider Adelphia in 1952.
06:04Over the next half-century, they grew it into one of the largest providers in the country.
06:08This little town suddenly home to a Fortune 500 company, led by a CEO that owned an NHL franchise.
06:16But, in 2002, investigators discovered that the Regas family had been bleeding the company dry.
06:22They'd been moving money back and forth between Adelphia and their other companies to hide the fact that they had
06:27stolen $100 million.
06:29He and his son Timothy, Adelphia's former chief financial officer, were convicted of using the company's funds like an ATM
06:36machine.
06:37They used it to buy cars, land, and other personal assets.
06:41Adelphia filed for bankruptcy, and Regas and his son Timothy went to prison.
06:45Regas was released due to health problems after serving eight years, and died in 2021.
06:50One-time billionaire John Regas died yesterday at 96 years old.
06:55Number 14, Martin Shkreli, Turing Pharmaceuticals, and Kalo Bios.
07:00You remember Pharma Bro?
07:01He became the most hated man in the country after his company bought a medication that treats pneumonia associated with
07:07HIV,
07:08and hiked the price 5,500%.
07:11At the end of the day, there have been much larger drug price increases by much bigger drug companies that
07:16actually,
07:17you would argue, large multi-billion dollar companies with lots of cash don't necessarily need to do something like this.
07:22Under America's broken healthcare system, that was totally legal.
07:26But his other slimy behavior was not.
07:29It turned out Shkreli was running a gigantic Ponzi scheme,
07:32starting new companies and using investor capital to pay off investors in his other companies.
07:37I intend to follow the advice of my counsel, not yours.
07:39His behavior during the trial didn't win him any favors with the judge,
07:43but his conviction gave everyone watching a huge dose of schadenfreude.
07:47He served four years in prison, and his companies, of course, went bankrupt.
07:52A jury decided that Martin Shkreli deceived investors in a pair of failed hedge funds.
07:57He was found guilty on three of eight counts.
08:00The case did focus on allegations that he blew investors' money on bad stock picks.
08:05Number 13, Sam Bankman-Fried, Alameda Research and FTX.
08:10He's not as unlikable as Shkreli, but he committed an even bigger fraud.
08:14In 2017, at just 25 years old, Bankman-Fried co-founded crypto trading firm Alameda Research.
08:21Two years later, he co-founded the crypto exchange FTX to raise capital for Alameda,
08:26but it did a lot more than that.
08:28If people say mean things about me, I can take it.
08:29Over the next three years, Bankman-Fried illegally took customers' deposits from FTX
08:34to pay Alameda's debts and fund its research.
08:37Even before the fraud was revealed, critics raised alarm bells about the close relationship
08:42between the two companies, arguing that it would never be permitted outside the unregulated crypto space.
08:48Bankman-Fried was eventually convicted of fraud and money laundering, and sentenced to 25 years.
08:53This morning, Sam Bankman-Fried's regret, three days after he was sentenced to 25 years in federal prison,
08:59the man behind one of the biggest financial frauds in American history told ABC News
09:04he never intended to hurt anyone or take anyone's money.
09:07Number 12, Richard Fuld, Lehman Brothers.
09:10He didn't cause the housing market crash that led to Lehman's collapse,
09:14but he's a major reason the 158-year-old bank never recovered.
09:18Fuld poured Lehman's money into subprime mortgages,
09:21those loans that created the bubble that popped in 2008.
09:24Did we do everything right? We clearly did not.
09:28A senior trader at the company later reported that Fuld ignored advisors' warnings that the market was unstable,
09:34and even banished Lehman's chief risk officer from meetings.
09:37Immediately after the crash, Lehman lost billions,
09:40and Fuld desperately tried to find a buyer for the firm to prevent it from going bankrupt.
09:45Lehman Brothers, a 158-year-old firm, filed for bankruptcy.
09:49I don't think anyone really expected a bank as big as Lehman to, you know, be in a position that
09:54it's in now.
09:55Yet he declined offers that could have saved it because he felt they weren't good enough.
09:59Lehman did go bankrupt, but Fuld had already been paid more than $400 million over the previous seven years.
10:06What about Dick Fuld specifically at Lehman Brothers?
10:10Well, I think he will go down as a pretty defective executive.
10:13Number 11, Gerald Ratner, Ratner Group.
10:16It's one thing to sell cheaply made products.
10:18It's another to admit in public that your products are junk.
10:22We even sell a pair of earrings for under a pound.
10:27Gold earrings as well.
10:29And some people say, well, that's cheaper than a prawn sandwich from Marks and Spencers.
10:35But I have to say, the sandwich will probably last longer than the earrings.
10:38Ratner inherited a group of family-run jewelry stores, which he successfully grew into a massive chain by offering major
10:45discounts.
10:46But while giving a speech to an entrepreneur's association in 1991, he made a fatal mistake that killed the company.
10:54Ratner joked about his jewelry's quality, calling it, quote, total crap, and implying that it would fall apart quickly.
11:00And it's really only cost £4.95.
11:05People say to me, how can you sell this for such a low price?
11:09I say, because it's total crap.
11:11His remarks made headlines the next day, and Ratner Group lost £500 million in a matter of days.
11:18Ratner was fired the following year, and the company later changed its name to Signet Group.
11:23It was an absolutely unmitigating disaster.
11:26Number 10, Carly Fiorina, Hewlett Packard.
11:29I led Hewlett Packard through a very difficult time, the worst technology recession in 25 years.
11:35Good morning, everybody.
11:37Then she launched a single massive deal, and she's been playing defense ever since.
11:43It was a terrible deal, and it really led to the destruction of the company.
11:47So what was this deal?
11:49Fiorina's aggressive pursuit of a bold vision arguably eroded the very foundations of a tech giant.
11:55Her tenure at IT behemoth Hewlett Packard, from 1999 to 2005, was defined by her controversial acquisition of Compaq,
12:03a move she championed as essential for HP's future relevance.
12:07Despite fierce internal and external opposition, the deal went through.
12:11But the promised synergies and market dominance largely failed to materialize.
12:15Profits plummeted, and even when they started rising again, they lagged well behind competitors.
12:21HP's stock value dropped by half.
12:2330,000 workers were laid off, and less than six years after she took control, Fiorina was fired.
12:30Wall Street had so little faith in her that on news of her dismissal, HP's stock jumped up 7%.
12:37Instead, the merger proved deeply unpopular, led to widespread layoffs, and created significant cultural friction,
12:44ultimately diluting HP's competitive edge, and resulting in a period of underperformance that culminated in her forced resignation.
12:51Two facts here.
12:52Why did HP's board fire you, and why on the day that they did, the stock went up nearly 7
12:58%?
13:00Well, they did fire me. I've been very open about that. I was fired in a boardroom brawl.
13:04We had board members who were leaking information out of the boardroom.
13:07You know, the truth is this. It is a leader's job to challenge the status quo.
13:12Number 9. Fred Goodwin, Royal Bank of Scotland.
13:15He was known as Fred the Shred as he led the Royal Bank of Scotland through acquisitions and job cuts
13:19to the brink of disaster.
13:21This evening, the knighthood he was awarded for services to banking was unceremoniously withdrawn
13:26by a previously obscure body known as the Forfeiture Committee.
13:30Across the pond, in the world of high finance, Fred Goodwin took the Royal Bank of Scotland
13:34on what could only be described as a ride off a cliff.
13:38Goodwin's aggressive expansion spree, especially during his disastrous acquisition of ABN AMRO
13:43at the peak of the 2008 bubble, left RBS reeling with debt and overexposure
13:48right as the global financial crisis hit.
13:51Fred Goodwin compounded his sins in the public eye
13:53by fighting for a time to hold on to £8 million in pension payouts.
13:58My pension is the same as everyone else in the bank.
14:01Losing his knighthood is the final insult for a man who used to have the ear of prime ministers
14:06and for years basked in the praise of politicians, even royalty.
14:11The fallout was so devastating it required a government bailout
14:14and saw RBS post the largest loss in UK corporate history.
14:18He was even stripped of his knighthood, a rare and public shaming for a failed banking boss.
14:24Well, this has been an independent decision by an important committee of civil servants
14:30and obviously signed off by the Queen.
14:32But RBS came to symbolize everything that went wrong in the British economy over the last decade.
14:37And under Fred Goodwin, that's when it happened.
14:41And I think it's appropriate, therefore, that he loses his knighthood.
14:44Number eight, Marissa Meyer, Yahoo.
14:47Big news in the tech world today, Google's Marissa Meyer defecting to take the top spot at Yahoo.
14:53The CEO job.
14:54It surprised a lot of people, pretty much everybody.
14:57Because Meyer was very big at Google.
14:59She was the 20th employee there and she was its first female engineer.
15:03When it comes to tech icons, Yahoo was once a titan until Marissa Meyer hopped into the driver's seat.
15:09Hired as a turnaround CEO, Meyer's tenure was marked by expensive acquisitions,
15:13like the $1.1 billion purchase of Tumblr, which failed to deliver anything close to the expected return.
15:20She also invested heavily in redesigns and new features that failed to recapture the magic of Yahoo's glory days.
15:27I think that, you know, it's very important for us to look at what generates the most value
15:32and the most opportunity for the company.
15:34And when you look at this transaction that Verizon's proposed, it recognizes a huge amount of value.
15:41And that's what our process was really designed to recognize.
15:45The company's struggle to innovate, couldn't adapt quickly enough to the mobile revolution,
15:50and continued to see its core advertising business erode,
15:53eventually leading to the sale of its core internet operations to Verizon for a fraction of its former valuation.
15:59Yahoo announcing CEO Marissa Meyer will step down from the board once the Verizon deal is completed.
16:04Five other directors, including co-founder David Filo, will also step down.
16:09Following the nearly $5 billion sale of its core internet business,
16:13Yahoo will change its name to Altaba, which is a combination of the words alternate and Alibaba.
16:19Number seven, Eddie Lampert, Sears Holdings.
16:22Big bankruptcy news of the morning.
16:24Sears Holdings, parent company of Sears and Kmart,
16:26filing for Chapter 11 earlier this morning,
16:28succumbing to a mountain of debt and failure to adapt to a changing retail landscape.
16:33Sears faced a $134 million debt payment that was supposed to be due today.
16:38The company reached a deal with its creditors to keep most of its operations running.
16:41That's for now.
16:42Sears was once America's go-to department store,
16:45so its slow-motion collapse is nothing short of tragic,
16:48largely thanks to the leadership philosophy of Eddie Lampert.
16:52Lampert's control of Sears and Kmart from 2005 onward
16:55saw him prioritize cost-cutting and asset sales over investment in the stores themselves.
17:01Instead of modernizing aging infrastructure or adapting to the rise of e-commerce,
17:06Lampert treated the companies as a portfolio of assets to be stripped,
17:10selling off valuable real estate and brands like Craftsman.
17:13This systematic underinvestment alienated customers, demoralized employees,
17:18and left the stores increasingly irrelevant,
17:20leading to decades of decline and ultimately the bankruptcy
17:23and near-total disappearance of both once-beloved brands.
17:26I remember when Eddie Lampert was A, on the cover of Businessweek magazine
17:30as the next Warren Buffett.
17:32I remember going to meet with him when Sears merged with Kmart,
17:36the morning that Sears merged with Kmart,
17:38and we all thought this was, or that he was a genius, he had some plan.
17:42No, but this is what, at the time, you should go back and look at the stories,
17:46the headlines, it was extraordinary.
17:47Number six, Bernard Ebers, WorldCom.
17:50Hi, David. As you well know, in his prime,
17:52Bernie Ebers was known as the Telecom Cowboy,
17:55a former high school basketball coach who cobbled together
17:58a company that ultimately helped lay the foundation for the internet as we know it.
18:04But it was all built on a massive brazen fraud.
18:07Ebers presided over one of the most jaw-dropping downfalls in corporate history.
18:11The charismatic CEO of WorldCom spearheaded the rapid expansion
18:15of the telecommunications giant through aggressive acquisitions throughout the 1990s.
18:20However, when the tech bubble burst and growth stalled,
18:23Ebers and his executives resorted to a massive scheme
18:26to falsely inflate company assets by nearly $11 billion.
18:31This elaborate deception masked the company's financial struggles,
18:35artificially boosting its stock price and deceiving investors.
18:38Misleading regulators as well as investors on the health of the company
18:44and overinflated a lot of the company's numbers and profits
18:48and that sort of thing, and he was caught.
18:50Despite being only halfway through his sentence,
18:53Ebers' family and their attorneys argued now at age 78,
18:56being in prison had taken major tolls on the man's health.
18:59When the fraud was uncovered in 2002,
19:01WorldCom promptly collapsed into bankruptcy,
19:04costing shareholders billions and thousands of employees their jobs and pensions.
19:08The scandal cemented Ebers' legacy as a CEO who played fast and loose with the truth.
19:14More on that breaking news, we force reported at 10 o'clock tonight,
19:17former WorldCom CEO Bernie Ebers has died.
19:21A family attorney confirmed that with 16 WAPT tonight,
19:25his family releasing a statement detailing his passing and thanking supporters.
19:29He was released from prison last year in December,
19:32having served 13 years of a 25-year sentence.
19:35Number five, John Scully, Apple Inc.
19:38He's the man who was supposed to be better than Steve Jobs.
19:41Now, more than 25 years after taking the helm at Apple,
19:45John Scully is saying it was all a big mistake,
19:48that Jobs would have saved Apple from a near-death experience.
19:53Scully's case is perhaps one of the most infamous examples of a CEO
19:56leading the company astray immediately after its visionary founder's departure.
20:01Scully, brought in from PepsiCo by Steve Jobs himself,
20:04famously ousted Jobs from Apple in 1985.
20:07They said, Steve, we want your assurance
20:09that you're not going to leave Apple and take other people with us.
20:12We've heard rumors of that.
20:13And he said, no, absolutely not.
20:15And then the next day, Steve took five key managers and the board fired him.
20:21What followed was a decade where Apple,
20:23despite some innovative products, lost its way.
20:26The company suffered from bloated product lines,
20:28high prices, a confusing brand identity,
20:31and a failure to license its operating system effectively,
20:34allowing Microsoft to dominate the burgeoning PC market.
20:37By the 1990s, Apple was teetering on the brink of bankruptcy,
20:41bleeding market share and relevance,
20:43until Jobs' triumphant return in 1997 pulled it back from the abyss.
20:47I think they made the wrong choice.
20:49They should have chosen Steve.
20:51The talent that Steve has is so extraordinary.
20:55We should have figured out how to work with it.
20:57If Jobs had come back even six months later,
21:00Scully says Apple would have been gone,
21:03quote, absolutely gone.
21:05He also says Jobs won't talk to him anymore.
21:08Number four, Martin Winterkorn, Volkswagen.
21:11Please welcome chairman of the board, Volkswagen Group,
21:15Professor Dr. Martin Winterkorn.
21:18Not any longer, Martin Winterkorn has quit as CEO of German carmaker Volkswagen
21:24amid the spiraling scandal over its rigging of diesel car emissions tests in the United States.
21:30Few corporate scandals have shifted global conversations like the Volkswagen emissions scandal,
21:36and much of the fallout falls at the feet of Martin Winterkorn.
21:39Winterkorn, the long-serving chairman of Volkswagen,
21:42was at the helm when the dieselgate scandal erupted in 2015.
21:45The supervisory board said we'd like to clearly state that Mr. Winterkorn was not aware of the manipulation of emissions,
21:53and that we have the greatest respect for his willingness to send a very clear signal
21:57and take responsibility in this difficult situation for Volkswagen.
22:01It was revealed that VW had deliberately installed defeat devices in millions of its diesel vehicles
22:07to cheat on emissions tests, making them appear far cleaner than they actually were.
22:12This systemic deception, driven by a corporate culture that prioritized market dominance above all else,
22:17led to Winterkorn's resignation, massive fines exceeding tens of billions of dollars,
22:22and a profound erosion of trust in the brand that continues to reverberate across the automotive industry.
22:28He denied any involvement in decisions to install the so-called defeat devices
22:32that made harmful diesel emissions seem cleaner than they were.
22:37Winterkorn faces a fine or a custodial sentence if found guilty.
22:41Number three, Adam Neumann, WeWork.
22:43Even though WeWork is 50 square foot per person,
22:46a third of all WeWork spaces are actually open common spaces that give access to everybody
22:51that we don't measure as seats.
22:53So there's a lot more room there.
22:54So the way we do it is people think that WeWork is all open.
22:57It's not true.
22:5890% of WeWork space is actually office.
23:0010% is only open space, but we create a lot of common space for everybody.
23:05A flamboyant founder whose unchecked ambition and chaotic leadership style
23:09nearly imploded a multi-billion dollar startup,
23:12Neumann co-founded WeWork with a vision to revolutionize office spaces.
23:16However, his tenure became synonymous with extravagant spending,
23:20questionable self-dealings, and a cult-like corporate culture.
23:23There was an interesting piece in the New York Times over the weekend titled
23:25Adam Neumann and the Art of Failing Up.
23:28The report detailed how Adam Neumann was able to create and build WeWork,
23:32fail spectacularly at an attempt to go public,
23:35and still walk away with a potential billion-dollar payday.
23:38It cites his ability to read people, his persuasive charisma, and his taste for risk.
23:43From lavish parties to personal use of company jets and selling trademark rights to WeWork itself,
23:49Neumann's financial impropriety and erratic management were legendary.
23:52The culmination was a disastrous attempt at an IPO in 2019,
23:57which exposed the company's massive losses and unsustainable business model,
24:02sending its valuation plummeting from $47 billion to under $10 billion in weeks,
24:07and nearly bankrupting the entire enterprise.
24:09What would it take for Mark to buy this IPO?
24:12Oh, I'm not buying it. No way.
24:14So, I've got an issue with the business model in general, right?
24:17So, you've got a company that's signing all of these long-term leases,
24:21and then they're subleasing to little, you know, small businesses,
24:26maybe one-employee kind of companies on very short-term leases.
24:30Number two, Jeffrey Skilling, Enron.
24:32Developing right now, the former CEO of Enron has just been released from federal custody.
24:37Jeff Skilling, now 65 years old, was released after spending 12 years in prison for his role
24:42in one of the most high-profile corporate and financial fraud cases in American history.
24:47While Skilling was the CEO in charge,
24:50the most infamous corporate scandal of the early 21st century
24:53was engineered by two men at the pinnacle of power.
24:56Skilling and Kenneth Lay, the founder and chairman,
24:59spearheaded Enron's transformation into a massive energy trading and services company.
25:04However, beneath the veneer of innovation lay a complex web of elaborate accounting fraud,
25:09including the use of special-purpose entities to hide massive debts and inflate earnings.
25:14You're the only financial institution that can't produce a balance sheet
25:17or a cash flow statement with their earnings.
25:21Well, thank you very much. We appreciate it.
25:26Appreciate it.
25:26Their deceptive practices created a false perception of profitability,
25:30attracting vast investments.
25:31When the House of Cards inevitably collapsed in late 2001,
25:35Enron filed for bankruptcy,
25:37erasing billions in shareholder value,
25:39destroying thousands of jobs,
25:41and sparking a national crisis of corporate governance.
25:44Jeff Skilling was the poster boy for all that was wrong
25:46with big corporations and corporate greed.
25:49Brian Weiss is Channel 2's legal analyst and covered Skilling's trial.
25:53Putting Jeff Skilling in the penitentiary for as long as we did
25:56didn't bring back any of the funds that these people lost,
26:00and they were never really made whole.
26:02Number one, Elizabeth Holmes, Theranos.
26:04This Theranos blood test put my cholesterol at 170.
26:08My own doctor found it to be 169 just the week before.
26:12Holmes says she wants to make this sort of testing available anywhere, anytime.
26:16There's no reason why these can't be distributed in very, very decentralized locations.
26:24Your home?
26:25Yeah.
26:25The story of this health tech corporation is one of audacious fraud,
26:28built on the promise of revolutionary technology that never existed.
26:33Elizabeth Holmes, the company's charismatic founder,
26:36captivated investors and the public with claims that her company could perform hundreds of medical tests
26:41from just a few drops of blood using a proprietary device called the Edison.
26:45She amassed billions in funding, built a powerful board, and was hailed as a Silicon Valley prodigy.
26:51There's this man who goes by the initials RC right now in Arizona,
26:56who is suggesting that the lab results that he got from Theranos were not accurate,
27:02and it led to him having a heart attack.
27:04Her elaborate deception unraveled spectacularly,
27:07leading to the complete dissolution of Theranos and her subsequent conviction for criminal fraud,
27:12marking one of the most stunning corporate downfalls in modern history.
27:15Well, she is one of 655 inmates at this so-called Club Fed,
27:20about 100 miles outside of Houston where she grew up.
27:23She'll have absolutely no privacy.
27:26She'll be wearing a khaki uniform.
27:28She will spend her first 90 days working in the kitchen,
27:31as we mentioned, making 12 to 40 cents an hour.
27:33After that, she will work as a groundskeeper or a janitor at the facility.
27:38Which of these CEOs do you think made the dumbest decisions?
27:41Let us know in the comments.
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