Elizabeth Holmes Through the Director’s Lens
Kira Peikoff was the editor-in-chief of Leaps.org from 2017 to 2021. As a journalist, her work has appeared in The New York Times, Newsweek, Nautilus, Popular Mechanics, The New York Academy of Sciences, and other outlets. She is also the author of four suspense novels that explore controversial issues arising from scientific innovation: Living Proof, No Time to Die, Die Again Tomorrow, and Mother Knows Best. Peikoff holds a B.A. in Journalism from New York University and an M.S. in Bioethics from Columbia University. She lives in New Jersey with her husband and two young sons. Follow her on Twitter @KiraPeikoff.
"The Inventor," a chronicle of Theranos's storied downfall, premiered recently on HBO. Leapsmag reached out to director Alex Gibney, whom The New York Times has called "one of America's most successful and prolific documentary filmmakers," for his perspective on Elizabeth Holmes and the world she inhabited.
Do you think Elizabeth Holmes was a charismatic sociopath from the start — or is she someone who had good intentions, over-promised, and began the lies to keep her business afloat, a "fake it till you make it" entrepreneur like Thomas Edison?
I'm not qualified to say if EH was or is a sociopath. I don't think she started Theranos as a scam whose only purpose was to make money. If she had done so, she surely would have taken more money for herself along the way. I do think that she had good intentions and that she, as you say, "began the lies to keep her business afloat." ([Reporter John] Carreyrou's book points out that those lies began early.) I think that the Edison comparison is instructive for a lot of reasons.
First, Edison was the original "fake-it-till-you-make-it" entrepreneur. That puts this kind of behavior in the mainstream of American business. By saying that, I am NOT endorsing the ethic, just the opposite. As one Enron executive mused about the mendacity there, "Was it fraud or was it bad marketing?" That gives you a sense of how baked-in the "fake it" sensibility is.
"Having a thirst for fame and a noble cause enabled her to think it was OK to lie in service of those goals."
I think EH shares one other thing with Edison, which is a huge ego coupled with a talent for storytelling as long as she is the heroic, larger-than-life main character. It's interesting that EH calls her initial device "Edison." Edison was the world's most famous "inventor," both because of the devices that came out of his shop and and for his ability for "self-invention." As Randall Stross notes in "The Wizard of Menlo Park," he was the first celebrity businessman. In addition to her "good intentions," EH was certainly motivated by fame and glory and many of her lies were in service to those goals.
Having a thirst for fame and a noble cause enabled her to think it was OK to lie in service of those goals. That doesn't excuse the lies. But those noble goals may have allowed EH to excuse them for herself or, more perniciously, to make believe that they weren't lies at all. This is where we get into scary psychological territory.
But rather than thinking of it as freakish, I think it's more productive to think of it as an exaggeration of the way we all lie to others and to ourselves. That's the point of including the Dan Ariely experiment with the dice. In that experiment, most of the subjects cheated more when they thought they were doing it for a good cause. Even more disturbing, that "good cause" allowed them to lie much more effectively because they had come to believe they weren't doing anything wrong. As it turns out, economics isn't a rational practice; it's the practice of rationalizing.
Where EH and Edison differ is that Edison had a firm grip on reality. He knew he could find a way to make the incandescent lightbulb work. There is no evidence that EH was close to making her "Edison" work. But rather than face reality (and possibly adjust her goals) she pretended that her dream was real. That kind of "over-promising" or "bold vision" is one thing when you are making a prototype in the lab. It's a far more serious matter when you are using a deeply flawed system on real patients. EH can tell herself that she had to do that (Walgreens was ready to walk away if she hadn't "gone live") or else Theranos would have run out of money.
But look at the calculation she made: she thought it was worth putting lives at risk in order to make her dream come true. Now we're getting into the realm of the sociopath. But my experience leads me to believe that -- as in the case of the Milgram experiment -- most people don't do terrible things right away, they come to crimes gradually as they become more comfortable with bigger and bigger rationalizations. At Theranos, the more valuable the company became, the bigger grew the lies.
The two whistleblowers come across as courageous heroes, going up against the powerful and intimidating company. The contrast between their youth and lack of power and the old elite backers of Theronos is staggering, and yet justice triumphed. Were the whistleblowers hesitant or afraid to appear in the film, or were they eager to share their stories?
By the time I got to them, they were willing and eager to tell their stories, once I convinced them that I would honor their testimony. In the case of Erika and Tyler, they were nudged to participate by John Carreyrou, in whom they had enormous trust.
"It's simply crazy that no one demanded to see an objective demonstration of the magic box."
Why do you think so many elite veterans of politics and venture capitalism succumbed to Holmes' narrative in the first place, without checking into the details of its technology or financials?
The reasons are all in the film. First, Channing Robertson and many of the old men on her board were clearly charmed by her and maybe attracted to her. They may have rationalized their attraction by convincing themselves it was for a good cause! Second, as Dan Ariely tells us, we all respond to stories -- more than graphs and data -- because they stir us emotionally. EH was a great storyteller. Third, the story of her as a female inventor and entrepreneur in male-dominated Silicon Valley is a tale that they wanted to invest in.
There may have been other factors. EH was very clever about the way she put together an ensemble of credibility. How could Channing Robertson, George Shultz, Henry Kissinger and Jim Mattis all be wrong? And when Walgreens put the Wellness Centers in stores, investors like Rupert Murdoch assumed that Walgreens must have done its due diligence. But they hadn't!
It's simply crazy that no one demanded to see an objective demonstration of the magic box. But that blind faith, as it turns out, is more a part of capitalism than we have been taught.
Do you think that Roger Parloff deserves any blame for the glowing Fortune story on Theranos, since he appears in the film to blame himself? Or was he just one more victim of Theranos's fraud?
He put her on the cover of Fortune so he deserves some blame for the fraud. He still blames himself. That willingness to hold himself to account shows how seriously he takes the job of a journalist. Unlike Elizabeth, Roger has the honesty and moral integrity to admit that he made a mistake. He owned up to it and published a mea culpa. That said, Roger was also a victim because Elizabeth lied to him.
Do you think investors in Silicon Valley, with their FOMO attitudes and deep pockets, are vulnerable to making the same mistake again with a shiny new startup, or has this saga been a sober reminder to do their due diligence first?
Many of the mistakes made with Theranos were the same mistakes made with Enron. We must learn to recognize that we are, by nature, trusting souls. Knowing that should lead us to a guiding slogan: "trust but verify."
The irony of Holmes dancing to "I Can't Touch This" is almost too perfect. How did you find that footage?
It was leaked to us.
"Elizabeth Holmes is now famous for her fraud. Who better to host the re-boot of 'The Apprentice.'"
Holmes is facing up to 20 years in prison for federal fraud charges, but Vanity Fair recently reported that she is seeking redemption, taking meetings with filmmakers for a possible documentary to share her "real" story. What do you think will become of Holmes in the long run?
It's usually a mistake to handicap a trial. My guess is that she will be convicted and do some prison time. But maybe she can convince jurors -- the way she convinced journalists, her board, and her investors -- that, on account of her noble intentions, she deserves to be found not guilty. "Somewhere, over the rainbow…"
After the trial, and possibly prison, I'm sure that EH will use her supporters (like Tim Draper) to find a way to use the virtual currency of her celebrity to rebrand herself and launch something new. Fitzgerald famously said that "there are no second acts in American lives." That may be the stupidest thing he ever said.
Donald Trump failed at virtually every business he ever embarked on. But he became a celebrity for being a fake businessman and used that celebrity -- and phony expertise -- to become president of the United States. Elizabeth Holmes is now famous for her fraud. Who better to host the re-boot of "The Apprentice." And then?
"You Can't Touch This!"
Kira Peikoff was the editor-in-chief of Leaps.org from 2017 to 2021. As a journalist, her work has appeared in The New York Times, Newsweek, Nautilus, Popular Mechanics, The New York Academy of Sciences, and other outlets. She is also the author of four suspense novels that explore controversial issues arising from scientific innovation: Living Proof, No Time to Die, Die Again Tomorrow, and Mother Knows Best. Peikoff holds a B.A. in Journalism from New York University and an M.S. in Bioethics from Columbia University. She lives in New Jersey with her husband and two young sons. Follow her on Twitter @KiraPeikoff.
Coronavirus Risk Calculators: What You Need to Know
People in my family seem to develop every ailment in the world, including feline distemper and Dutch elm disease, so I naturally put fingers to keyboard when I discovered that COVID-19 risk calculators now exist.
"It's best to look at your risk band. This will give you a more useful insight into your personal risk."
But the results – based on my answers to questions -- are bewildering.
A British risk calculator developed by the Nexoid software company declared I have a 5 percent, or 1 in 20, chance of developing COVID-19 and less than 1 percent risk of dying if I get it. Um, great, I think? Meanwhile, 19 and Me, a risk calculator created by data scientists, says my risk of infection is 0.01 percent per week, or 1 in 10,000, and it gave me a risk score of 44 out of 100.
Confused? Join the club. But it's actually possible to interpret numbers like these and put them to use. Here are five tips about using coronavirus risk calculators:
1. Make Sure the Calculator Is Designed For You
Not every COVID-19 risk calculator is designed to be used by the general public. Cleveland Clinic's risk calculator, for example, is only a tool for medical professionals, not sick people or the "worried well," said Dr. Lara Jehi, Cleveland Clinic's chief research information officer.
Unfortunately, the risk calculator's web page fails to explicitly identify its target audience. But there are hints that it's not for lay people such as its references to "platelets" and "chlorides."
The 19 and Me or the Nexoid risk calculators, in contrast, are both designed for use by everyone, as is a risk calculator developed by Emory University.
2. Take a Look at the Calculator's Privacy Policy
COVID-19 risk calculators ask for a lot of personal information. The Nexoid calculator, for example, wanted to know my age, weight, drug and alcohol history, pre-existing conditions, blood type and more. It even asked me about the prescription drugs I take.
It's wise to check the privacy policy and be cautious about providing an email address or other personal information. Nexoid's policy says it provides the information it gathers to researchers but it doesn't release IP addresses, which can reveal your location in certain circumstances.
John-Arne Skolbekken, a professor and risk specialist at Norwegian University of Science and Technology, entered his own data in the Nexoid calculator after being contacted by LeapsMag for comment. He noted that the calculator, among other things, asks for information about use of recreational drugs that could be illegal in some places. "I have given away some of my personal data to a company that I can hope will not misuse them," he said. "Let's hope they are trustworthy."
The 19 and Me calculator, by contrast, doesn't gather any data from users, said Cindy Hu, data scientist at Mathematica, which created it. "As soon as the window is closed, that data is gone and not captured."
The Emory University risk calculator, meanwhile, has a long privacy policy that states "the information we collect during your assessment will not be correlated with contact information if you provide it." However, it says personal information can be shared with third parties.
3. Keep an Eye on Time Horizons
Let's say a risk calculator says you have a 1 percent risk of infection. That's fairly low if we're talking about this year as a whole, but it's quite worrisome if the risk percentage refers to today and jumps by 1 percent each day going forward. That's why it's helpful to know exactly what the numbers mean in terms of time.
Unfortunately, this information isn't always readily available. You may have to dig around for it or contact a risk calculator's developers for more information. The 19 and Me calculator's risk percentages refer to this current week based on your behavior this week, Hu said. The Nexoid calculator, by contrast, has an "infinite timeline" that assumes no vaccine is developed, said Jonathon Grantham, the company's managing director. But your results will vary over time since the calculator's developers adjust it to reflect new data.
When you use a risk calculator, focus on this question: "How does your risk compare to the risk of an 'average' person?"
4. Focus on the Big Picture
The Nexoid calculator gave me numbers of 5 percent (getting COVID-19) and 99.309 percent (surviving it). It even provided betting odds for gambling types: The odds are in favor of me not getting infected (19-to-1) and not dying if I get infected (144-to-1).
However, Grantham told me that these numbers "are not the whole story." Instead, he said, "it's best to look at your risk band. This will give you a more useful insight into your personal risk." Risk bands refer to a segmentation of people into five categories, from lowest to highest risk, according to how a person's result sits relative to the whole dataset.
The Nexoid calculator says I'm in the "lowest risk band" for getting COVID-19, and a "high risk band" for dying of it if I get it. That suggests I'd better stay in the lowest-risk category because my pre-existing risk factors could spell trouble for my survival if I get infected.
Michael J. Pencina, a professor and biostatistician at Duke University School of Medicine, agreed that focusing on your general risk level is better than focusing on numbers. When you use a risk calculator, he said, focus on this question: "How does your risk compare to the risk of an 'average' person?"
The 19 and Me calculator, meanwhile, put my risk at 44 out of 100. Hu said that a score of 50 represents the typical person's risk of developing serious consequences from another disease – the flu.
5. Remember to Take Action
Hu, who helped develop the 19 and Me risk calculator, said it's best to use it to "understand the relative impact of different behaviors." As she noted, the calculator is designed to allow users to plug in different answers about their behavior and immediately see how their risk levels change.
This information can help us figure out if we should change the way we approach the world by, say, washing our hands more or avoiding more personal encounters.
"Estimation of risk is only one part of prevention," Pencina said. "The other is risk factors and our ability to reduce them." In other words, odds, percentages and risk bands can be revealing, but it's what we do to change them that matters.
Pseudoscience Is Rampant: How Not to Fall for It
Whom to believe?
The relentless and often unpredictable coronavirus (SARS-CoV-2) has, among its many quirky terrors, dredged up once again the issue that will not die: science versus pseudoscience.
How does one learn to spot the con without getting a Ph.D. and spending years in a laboratory?
The scientists, experts who would be the first to admit they are not infallible, are now in danger of being drowned out by the growing chorus of pseudoscientists, conspiracy theorists, and just plain troublemakers that seem to be as symptomatic of the virus as fever and weakness.
How is the average citizen to filter this cacophony of information and misinformation posing as science alongside real science? While all that noise makes it difficult to separate the real stuff from the fakes, there is at least one positive aspect to it all.
A famous aphorism by one Charles Caleb Colton, a popular 19th-century English cleric and writer, says that "imitation is the sincerest form of flattery."
The frauds and the paranoid conspiracy mongers who would perpetrate false science on a susceptible public are at least recognizing the value of science—they imitate it. They imitate the ways in which science works and make claims as if they were scientists, because even they recognize the power of a scientific approach. They are inadvertently showing us how much we value science. Unfortunately they are just shabby counterfeits.
Separating real science from pseudoscience is not a new problem. Philosophers, politicians, scientists, and others have been worrying about this perhaps since science as we know it, a science based entirely on experiment and not opinion, arrived in the 1600s. The original charter of the British Royal Society, the first organized scientific society, stated that at their formal meetings there would be no discussion of politics, religion, or perpetual motion machines.
The first two of those for the obvious purpose of keeping the peace. But the third is interesting because at that time perpetual motion machines were one of the main offerings of the imitators, the bogus scientists who were sure that you could find ways around the universal laws of energy and make a buck on it. The motto adopted by the society was, and remains, Nullius in verba, Latin for "take nobody's word for it." Kind of an early version of Missouri's venerable state motto: "Show me."
You might think that telling phony science from the real thing wouldn't be so difficult, but events, historical and current, tell a very different story—often with tragic outcomes. Just one terrible example is the estimated 350,000 additional HIV deaths in South Africa directly caused by the now-infamous conspiracy theories of their own elected President no less (sound familiar?). It's surprisingly easy to dress up phony science as the real thing by simply adopting, or appearing to adopt, the trappings of science.
Thus, the anti-vaccine movement claims to be based on suspicion of authority, beginning with medical authority in this case, stemming from the fraudulent data published by the now-disgraced Andrew Wakefield, an English gastroenterologist. And it's true that much of science is based on suspicion of authority. Science got its start when the likes of Galileo and Copernicus claimed that the Church, the State, even Aristotle, could no longer be trusted as authoritative sources of knowledge.
But Galileo and those who followed him produced alternative explanations, and those alternatives were based on data that arose independently from many sources and generated a great deal of debate and, most importantly, could be tested by experiments that could prove them wrong. The anti-vaccine movement imitates science, still citing the discredited Wakefield report, but really offers nothing but suspicion—and that is paranoia, not science.
Similarly, there are those who try to cloak their nefarious motives in the trappings of science by claiming that they are taking the scientific posture of doubt. Science after all depends on doubt—every scientist doubts every finding they make. Every scientist knows that they can't possibly foresee all possible instances or situations in which they could be proven wrong, no matter how strong their data. Einstein was doubted for two decades, and cosmologists are still searching for experimental proofs of relativity. Science indeed progresses by doubt. In science revision is a victory.
But the imitators merely use doubt to suggest that science is not dependable and should not be used for informing policy or altering our behavior. They claim to be taking the legitimate scientific stance of doubt. Of course, they don't doubt everything, only what is problematic for their individual enterprises. They don't doubt the value of blood pressure medicine to control their hypertension. But they should, because every medicine has side effects and we don't completely understand how blood pressure is regulated and whether there may not be still better ways of controlling it.
But we use the pills we have because the science is sound even when it is not completely settled. Ask a hypertensive oil executive who would like you to believe that climate science should be ignored because there are too many uncertainties in the data, if he is willing to forgo his blood pressure medicine—because it, too, has its share of uncertainties and unwanted side effects.
The apparent success of pseudoscience is not due to gullibility on the part of the public. The problem is that science is recognized as valuable and that the imitators are unfortunately good at what they do. They take a scientific pose to gain your confidence and then distort the facts to their own purposes. How does one learn to spot the con without getting a Ph.D. and spending years in a laboratory?
"If someone claims to have the ultimate answer or that they know something for certain, the only thing for sure is that they are trying to fool you."
What can be done to make the distinction clearer? Several solutions have been tried—and seem to have failed. Radio and television shows about the latest scientific breakthroughs are a noble attempt to give the public a taste of good science, but they do nothing to help you distinguish between them and the pseudoscience being purveyed on the neighboring channel and its "scientific investigations" of haunted houses.
Similarly, attempts to inculcate what are called "scientific habits of mind" are of little practical help. These habits of mind are not so easy to adopt. They invariably require some amount of statistics and probability and much of that is counterintuitive—one of the great values of science is to help us to counter our normal biases and expectations by showing that the actual measurements may not bear them out.
Additionally, there is math—no matter how much you try to hide it, much of the language of science is math (Galileo said that). And half the audience is gone with each equation (Stephen Hawking said that). It's hard to imagine a successful program of making a non-scientifically trained public interested in adopting the rigors of scientific habits of mind. Indeed, I suspect there are some people, artists for example, who would be rightfully suspicious of changing their thinking to being habitually scientific. Many scientists are frustrated by the public's inability to think like a scientist, but in fact it is neither easy nor always desirable to do so. And it is certainly not practical.
There is a more intuitive and simpler way to tell the difference between the real thing and the cheap knock-off. In fact, it is not so much intuitive as it is counterintuitive, so it takes a little bit of mental work. But the good thing is it works almost all the time by following a simple, if as I say, counterintuitive, rule.
True science, you see, is mostly concerned with the unknown and the uncertain. If someone claims to have the ultimate answer or that they know something for certain, the only thing for sure is that they are trying to fool you. Mystery and uncertainty may not strike you right off as desirable or strong traits, but that is precisely where one finds the creative solutions that science has historically arrived at. Yes, science accumulates factual knowledge, but it is at its best when it generates new and better questions. Uncertainty is not a place of worry, but of opportunity. Progress lives at the border of the unknown.
How much would it take to alter the public perception of science to appreciate unknowns and uncertainties along with facts and conclusions? Less than you might think. In fact, we make decisions based on uncertainty every day—what to wear in case of 60 percent chance of rain—so it should not be so difficult to extend that to science, in spite of what you were taught in school about all the hard facts in those giant textbooks.
You can believe science that says there is clear evidence that takes us this far… and then we have to speculate a bit and it could go one of two or three ways—or maybe even some way we don't see yet. But like your blood pressure medicine, the stuff we know is reliable even if incomplete. It will lower your blood pressure, no matter that better treatments with fewer side effects may await us in the future.
Unsettled science is not unsound science. The honesty and humility of someone who is willing to tell you that they don't have all the answers, but they do have some thoughtful questions to pursue, are easy to distinguish from the charlatans who have ready answers or claim that nothing should be done until we are an impossible 100-percent sure.
Imitation may be the sincerest form of flattery.
The problem, as we all know, is that flattery will get you nowhere.
[Editor's Note: This article was originally published on June 8th, 2020 as part of a standalone magazine called GOOD10: The Pandemic Issue. Produced as a partnership among LeapsMag, The Aspen Institute, and GOOD, the magazine is available for free online.]