Category: Business

  • The rise and fall of Elizabeth Holmes, the former Theranos CEO

    Former Theranos CEO Elizabeth Holmes alongside her boyfriend Billy Evans, walks back to her hotel following a hearing at the Robert E. Peckham U.S. Courthouse on March 17, 2023 in San Jose, California.
    Convicted Theranos founder Elizabeth Holmes.

    • Elizabeth Holmes dropped out of Stanford at 19 to start the blood-testing startup Theranos.
    • Theranos' value grew to $9 billion until flaws in the technology were exposed and Holmes was charged with fraud. 
    • Here's how Holmes went from precocious child, to ambitious Stanford dropout, to an embattled startup founder now in prison.
    Elizabeth Holmes was born on February 3, 1984 in Washington, DC. Her mom, Noel, was a Congressional committee staffer, and her dad, Christian Holmes, worked for Enron before moving to government agencies like USAID.
    Elizabeth Holmes tweet
    Holmes' family moved when she was young, from Washington, DC to Houston.
    washington dc
    Washington, DC

    Source: Fortune

    When she was 7, Holmes tried to invent her own time machine, filling up an entire notebook with detailed engineering drawings. At the age of 9, Holmes told relatives she wanted to be a billionaire when she grew up. Her relatives described her as saying it with the "utmost seriousness and determination."
    Elizabeth Holmes Theranos
    Theranos CEO Elizabeth Holmes.

    Holmes had an "intense competitive streak" from a young age. She often played Monopoly with her younger brother and cousin, and she would insist on playing until the end, collecting the houses and hotels until she won. If Holmes was losing, she would often storm off. More than once, she ran directly through a screen on the door.
    Elizabeth Holmes
    Elizabeth Holmes, CEO of Theranos, attends a panel discussion during the Clinton Global Initiative's annual meeting in New York, September 29, 2015.

    It was during high school that Holmes developed her work ethic, often staying up late to study. She quickly became a straight-A student, and even started her own business: she sold C++ compilers, a type of software that translates computer code, to Chinese schools.
    Students in China
    Holmes started taking Mandarin lessons and part-way through high school, talked her way into being accepted by Stanford University’s summer program, which culminated in a trip to Beijing.
    China, Beijing
    Inspired by her great-great-grandfather Christian Holmes, a surgeon, Holmes decided she wanted to go into medicine. But she discovered early on that she was terrified of needles. Later, she said this influenced her to start Theranos.
    Blood draw purple EDTA tube
    Holmes went to Stanford to study chemical engineering. When she was a freshman, she became a "president's scholar," an honor that came with a $3,000 stipend to go toward a research project.
    Stanford University Campus
    STANFORD, CA – MAY 22: People ride bikes past Hoover Tower on the Stanford University campus on May 22, 2014 in Stanford, California. According to the Academic Ranking of World Universities by China's Shanghai Jiao Tong University, Stanford University ranked second behind Harvard University as the top universities in the world. UC Berkeley ranked third. (Photo by Justin Sullivan/Getty Images)

    Source: Fortune

    Holmes spent the summer after her freshman year interning at the Genome Institute in Singapore. She got the job partly because she spoke Mandarin.
    singapore skyline
    An office worker walks along the Singapore River front during the lunch hour.

    Source: Fortune

    As a sophomore, Holmes went to one of her professors, Channing Robertson, and said: "Let's start a company." With his blessing, she founded Real-Time Cures, later changing the company's name to Theranos. Thanks to a typo, early employees’ paychecks actually said "Real-Time Curses."
    Elizabeth Holmes
    Holmes soon filed a patent application for a "medical device for analyte monitoring and drug delivery," a wearable device that would administer medication, monitor patients' blood, and adjust the dosage as needed.
    diabetes monitor
    By the next semester, Holmes had dropped out of Stanford altogether and was working on Theranos in the basement of a college house.
    Elizabeth Holmes
    Theranos's business model was based around the idea that it could run blood tests, using proprietary technology that required only a finger pinprick and a small amount of blood. Holmes said the tests would be able to detect medical conditions like cancer and high cholesterol.
    theranos chairman
    Theranos Chairman, CEO and Founder Elizabeth Holmes (L) and TechCrunch Writer and Moderator Jonathan Shieber speak onstage at TechCrunch Disrupt at Pier 48 on September 8, 2014 in San Francisco, California

    Holmes started raising money for Theranos from prominent investors like Oracle founder Larry Ellison and Tim Draper, the father of a childhood friend and the founder of prominent VC firm Draper Fisher Jurvetson. Theranos raised more than $700 million, and Draper has continued to defend Holmes.
    Tim Draper
    Investor Tim Draper (right).

    Source: SEC, Crunchbase

    Holmes took investors' money on the condition that she wouldn't have to reveal how Theranos' technology worked. Plus, she would have the final say over everything having to do with the company.
    elizabeth holmes theranos

    Source: Vanity Fair

    That obsession with secrecy extended to every aspect of Theranos. For the first decade Holmes spent building her company, Theranos operated in stealth mode. She even took three former Theranos employees to court, claiming they had misused Theranos trade secrets.
    Elizabeth Holmes Theranos
    Holmes' attitude toward secrecy and running a company was borrowed from a Silicon Valley hero of hers: former Apple CEO Steve Jobs. Holmes started dressing in black turtlenecks like Jobs, decorated her office with his favorite furniture, and like Jobs, never took vacations.
    Steve Jobs
    Steve Jobs.

    Source: Vanity Fair

    Even Holmes's uncharacteristically deep voice may have been part of a carefully crafted image intended to help her fit in in the male-dominated business world. In ABC's podcast on Holmes called "The Dropout," former Theranos employees said the CEO sometimes "fell out of character," particularly after drinking, and would speak in a higher voice.
    elizabeth holmes
    Former U.S. President Bill Clinton and Elizabeth Holmes, CEO of Theranos, during the Clinton Global Initiative's annual meeting in New York.

    Holmes was a demanding boss and wanted her employees to work as hard as she did. She had her assistants track when employees arrived and left each day. To encourage people to work longer hours, she started having dinner catered to the office around 8 p.m. each night.
    Theranos PaloAlto hq
    More behind-the-scenes footage of what life was like at Theranos was revealed in leaked videos obtained by the team behind the HBO documentary "The Inventor: Out for Blood in Silicon Valley." The more than 100 hours of footage showed Holmes walking around the office, scenes from company parties, speeches from Holmes and Balwani, and Holmes dancing to "U Can't Touch This" by MC Hammer.
    Elizabeth Holmes
    Theranos founder Elizabeth Holmes at the company's headquarters.

    Shortly after Holmes dropped out of Stanford at age 19, she began dating Theranos president and COO Sunny Balwani, who was 20 years her senior. The two met during Holmes' third year in Stanford’s summer Mandarin program, the summer before she went to college. She was bullied by some of the other students, and Balwani had come to her aid.
    Sunny Balwani
    Footage of Sunny Balwani presenting.

    Balwani became Holmes' No. 2 at Theranos despite having little experience. He was said to be a bully and often tracked his employees' whereabouts. Holmes and Balwani eventually broke up in spring 2016 when Holmes pushed him out of the company.
    sunny balwani
    Sunny Balwani pictured in January 2019.

    In 2008, the Theranos board decided to remove Holmes as CEO in favor of someone more experienced. But over the course of a two-hour meeting, Holmes convinced them to let her stay in charge of her company.
    elizabeth holmes
    As Theranos started to rake in millions of funding, Holmes became the subject of media attention and acclaim in the tech world. She graced the covers of Fortune and Forbes, gave a TED Talk, and spoke on panels with Bill Clinton and Alibaba's Jack Ma.
    Bill Clinton Elizabeth Holmes Jack Ma
    Elizabeth Holmes with former President Bill Clinton, left, and Alibaba cofounder Jack Ma.

    Source: Vanity Fair

    Theranos quickly began securing outside partnerships. Capital Blue Cross and Cleveland Clinic signed on to offer Theranos tests to their patients, and Walgreens made a deal to open Theranos testing centers in their stores. Theranos also formed a secret partnership with Safeway worth $350 million.
    theranos review
    A Theranos testing center inside a Walgreens.

    In 2011, Holmes hired her younger brother, Christian, to work at Theranos, although he didn’t have a medical or science background. Christian Holmes spent his early days at Theranos reading about sports online and recruiting his Duke University fraternity brothers to join the company. People dubbed Holmes and his crew the "Frat Pack" and "Therabros."
    elizabeth christian holmes
    Elizabeth Holmes and her brother, Christian.

    At one point, Holmes was the world's youngest self-made female billionaire with a net worth of around $4.5 billion.
    Elizabeth Holmes

    Source: Forbes

    Holmes was obsessed with security at Theranos. She asked anyone who visited the company’s headquarters to sign non-disclosure agreements before being allowed in the building and had security guards escort visitors everywhere — even to the bathroom.
    Audi A8 sedan

     

    Holmes hired bodyguards to drive her around in a black Audi sedan. Her nickname was "Eagle One." The windows in her office had bulletproof glass.

    Source: Bad Blood: Secrets and Lies in a Silicon Valley Startup

    Around the same time, questions were being raised about Theranos' technology. Ian Gibbons — chief scientist at Theranos and one of the company's first hires — warned Holmes that the tests weren't ready for the public to take and that there were inaccuracies in the technology. Outside scientists began voicing their concerns about Theranos, too.
    theranos review melia robinson
    By August 2015, the FDA began investigating Theranos, and regulators from the government body that oversees laboratories found "major inaccuracies" in the testing Theranos was doing on patients.
    protein lab pharmaceuticals

    Source: Vanity Fair

    By October 2015, Wall Street Journal reporter John Carreyrou published his investigation into Theranos's struggles with its technology. Carreyrou's reporting sparked the beginning of the company's downward spiral.
    Wall Street Journal reporter John Carreyrou
    Wall Street Journal reporter John Carreyrou.

    Carreyrou found that Theranos' blood-testing machine, named Edison, couldn't give accurate results, so Theranos was running its samples through the same machines used by traditional blood-testing companies.
    Flint Michigan lead crisis blood test
    Holmes appeared on CNBC's "Mad Money" shortly after the WSJ published its story to defend herself and Theranos. "This is what happens when you work to change things, and first they think you're crazy, then they fight you, and then all of a sudden you change the world," Holmes said.
    Elizabeth Holmes Mad Money

    Source: CNBC

    By 2016, the FDA, Centers for Medicare & Medicaid Services, and SEC were all looking into Theranos.
    Elizabeth Holmes
    In July 2016, Holmes was banned from the lab-testing industry for two years. By October, Theranos had shut down its lab operations and wellness centers.
    Elizabeth Holmes
    In March 2018, Theranos, Holmes, and Balwani were charged with "massive fraud" by the SEC. Holmes agreed to give up financial and voting control of the company, pay a $500,000 fine, and return 18.9 million shares of Theranos stock. She also isn't allowed to be the director or officer of a publicly traded company for 10 years.
    Elizabeth Holmes
    Despite the charges, Holmes was allowed to stay on as CEO of Theranos, since it's a private company. The company had been hanging on by a thread, and Holmes wrote to investors asking for more money to save Theranos. "In light of where we are, this is no easy ask," Holmes wrote.
    Elizabeth Holmes
    In Theranos' final days, Holmes reportedly got a Siberian husky puppy named Balto that she brought into the office. However, the dog wasn't potty trained, and would go to the bathroom inside the company's office and during meetings.
    Siberian Huskies
    A Siberian husky (not Holmes' dog).

    Source: Vanity Fair

    In June 2018, Theranos announced that Holmes was stepping down as CEO. On the same day, the Department of Justice announced that a federal grand jury had charged Holmes, along with Balwani, with nine counts of wire fraud and two counts of conspiracy to commit wire fraud.
    Elizabeth Holmes
    Elizabeth Holmes, founder and CEO of Theranos, speaks at the Wall Street Journal Digital Live (WSJDLive) conference at the Montage hotel in Laguna Beach, California, October 21, 2015.

    Theranos sent an email to shareholders in September 2018 announcing that the company was shutting down. Theranos reportedly said it planned to spend the next few months repaying creditors with its remaining resources.
    Elizabeth Holmes
    Around the time Theranos' time was coming to an end, Holmes made her first public appearance alongside William "Billy" Evans, a 27-year-old heir to a hospitality property management company in California. The two reportedly first met in 2017, and were seen together in 2018 at Burning Man, the art festival in the Nevada desert.
    burning man

    Source: Daily Mail

    Holmes is said to wear Evans' MIT "signet ring" on a chain around her neck, and the couple reportedly posts photos "professing their love for each other" on a private Instagram account. Evans' parents are reportedly "flabbergasted" at their son's decision to marry Holmes.
    It's unclear where Holmes and Evans currently reside, but they were previously living in a $5,000-a-month apartment in San Francisco until April 2019. The apartment was located just a few blocks from one of the city's top tourist attractions, the famously crooked block of Lombard Street.
    elizabeth holmes san francisco apartment
    Lombard Place Apartments, where Holmes used to live.

    It was later reported that Holmes and Evans got engaged in early 2019, then married in June in a secretive wedding ceremony. Former Theranos employees were reportedly not invited to the wedding, according to Vanity Fair.
    elizabeth holmes theranos 4x3
    Holmes' and Balwani's cases have since been separated.
    Elizabeth Holmes Sunny Balwani
    Besides the criminal case, Holmes was also involved in a number of civil lawsuits, including one in Arizona brought by former Theranos patients over inaccurate blood tests. The lawyers representing her in the Arizona case said in late 2019 they hadn't been paid over a year and asked to be removed from Holmes' legal team.
    Elizabeth Holmes Theranos court
    Former Theranos CEO Elizabeth Holmes leaves after a hearing at a federal court.

    Holmes' lawyers in the federal case had tried to get the government's entire case thrown out. In February 2020, Holmes caught a break after some of the charges against her were dropped when a judge ruled that some patients didn't suffer financial loss.
    Elizabeth Holmes
    Amid the coronavirus outbreak, Holmes' lawyers asked the judge in April 2020 to deem the case "essential" so the defense team could defy lockdown orders and continue to travel and meet face-to-face. The judge said he was "taken aback" by the defense's pleas to violate lockdown.
    Federal Courthouse san jose

    Source: Business Insider

     

    It soon become clear that the pandemic — and the health risks associated with assembling a trial in one — would make the July trial date unrealistic. Through hearings held on Zoom, the presiding judge initially pushed the trial back to October 2020 and later postponed it further to March 2021.
    airport coronavirus masks
    Passengers wear masks as they walk through LAX airport.

    Source: Business Insider

     

    In March 2021, Holmes requested another delay to the trial because she was pregnant. She asked to push back the trial to August 31, and her request was granted. Holmes reportedly gave birth to the child in July.
    Elizabeth Holmes
    Heading into the trial, Holmes felt "wronged, like Salem-witch-trial wronged," says a person who used to work with her closely.
    Elizabeth Holmes
    Holmes, right, leaving the Robert F. Peckham Federal Building in San Jose, California with her defense team on May 4, 2021.

    The trial kicked off in September. In opening statements, prosecutors argued that, "Out of time and out of money, Elizabeth Holmes decided to lie." Meanwhile, the defense argued that although Theranos ultimately crumbled, "Failure is not a crime. Trying your hardest and coming up short is not a crime."
    Elizabeth Holmes and her legal team arriving August 31 for her federal fraud trial
    Theranos founder Elizabeth Holmes arrives at the Robert F. Peckham Federal Building with her defense team on August 31, 2021 in San Jose, California.

    Source: Business Insider

     

    The list of possible witnesses for the trial named roughly 200 people, including the likes of Rupert Murdoch, Henry Kissinger, James Mattis, and Holmes herself.
    elizabeth holmes trial
    Theranos founder Elizabeth Holmes leaves the Robert F. Peckham U.S. Courthouse with her mother, Noel Holmes, during her trial.

    In the end, the trial featured testimony from just over 30 witnesses.
    Elizabeth Holmes trial sketch.
    Over the course of 11 weeks, prosecutors called 29 witnesses to testify — including former Theranos employees, investors, patients, and doctors — before resting their case in November.
    Elizabeth Holmes trial sketch

    Source: Business Insider

     

    The defense then began making its case, calling just three witnesses, including Holmes herself.
    Theranos founder Elizabeth Holmes leaves the Robert F. Peckham Federal Building and U.S. Courthouse in San Jose, California
    On the stand, Holmes said Balwani emotionally and sexually abused her during their relationship.
    Elizabeth Holmes, founder and former CEO of Theranos, arrives for motion hearing on Monday, November 4, 2019, at the U.S. District Court House inside Robert F. Peckham Federal Building in San Jose, California. And former Theranos COO Ramesh "Sunny' Balwani leaves the Robert F. Peckham U.S. Federal Court on June 28, 2019 in San Jose, California.
    Holmes testified that Balwani controlled what she ate and how her schedule looked, told her she had to "become a new Elizabeth" to succeed in business, and forced her to have sex with him when she didn't want to because "he would say that he wanted me to know he still loved me."
    Former Theranos COO Ramesh "Sunny' Balwani walks outside a federal courthouse in San Jose, California
    Former Theranos COO Ramesh "Sunny' Balwani leaves the Robert F. Peckham U.S. Federal Court on June 28, 2019 in San Jose, California.

    Holmes also admitted that she added some pharmaceutical companies' logos to Theranos' reports without authorization. Investors previously said they took some reassurance in those reports because, based on the logos, they thought major pharmaceutical companies had validated Theranos' technology. Holmes said she added the logos to convey that work was done in partnership with those companies, but in hindsight she wishes she had "done it differently."
    Theranos founder and former CEO Elizabeth Holmes (L) walks with her mother Noel Holmes as they arrive for Elizabeth Holmes's trial at the Robert F. Peckham Federal Building on November 17, 2021 in San Jose, California.
    Holmes also acknowledged on the stand that she hid Theranos' use of modified commercial devices from investors. She said she did this because company counsel told her that alterations the company made to the machines were trade secrets and needed to be protected as such.
    Theranos founder Elizabeth Holmes leaves after attending her fraud trial at federal court in San Jose, California, U.S. November 22, 2021
    Holmes spent seven days on the stand before the defense rested its case in early December.
    Theranos founder Elizabeth Holmes wears a blue mask walking to federal court
    Theranos founder Elizabeth Holmes arrives to attend her fraud trial at federal court in San Jose, California, U.S., December 16, 2021.

    In closing arguments, prosecutors argued that Holmes "chose fraud over business failure" while the defense argued she was "building a business, not a criminal enterprise."
    Theranos founder Elizabeth Holmes wears a blue mask in federal court
    Elizabeth Holmes walks into federal court in San Jose, Calif., Friday, Dec. 17, 2021.

    After 15 weeks of trial, Holmes' case headed to a jury of eight men and four women on December 17, 2021.
    Elizabeth Holmes, Billy Evans leaving court
    Elizabeth Holmes, founder and former CEO of blood testing and life sciences company Theranos, leaves the courthouse with her husband Billy Evans after the first day of her fraud trial in San Jose, California on September 8, 2021.

    Jurors deliberated for a total of seven days over the next few weeks before telling the court on January 3, 2022, that they were deadlocked on three of the 11 charges against Holmes. The judge read off some jury instructions to the group in court before instructing them to go back and deliberate further.
    Theranos founder Elizabeth Holmes is seen wearing a blue mask and gray sweater in a courthouse
    Hours later, the jury returned a mixed verdict for Holmes, finding her guilty on one count of conspiracy to defraud investors and three counts of wire fraud. They found her not guilty on four other counts and failed to reach a verdict on the remaining three counts.
    Theranos founder and former CEO Elizabeth Holmes arrives for her trial at the Robert F. Peckham Federal Building on December 07, 2021 in San Jose, California. Holmes is facing charges of conspiracy and wire fraud for allegedly engaging in a multimillion-dollar scheme to defraud investors with the Theranos blood testing lab services.
    The counts Holmes was found guilty of were all related to investments; she wasn't convicted on any of the charges involving patients who received inaccurate test results.
    Theranos founder and former CEO Elizabeth Holmes (C) and her mother Noel Holmes leave the Robert F. Peckham Federal Building on January 3, 2022 in San Jose, California.
    Holmes faced the possibility of decades in prison. Each count carries a maximum 20-year prison sentence, a $250,000 fine, and a requirement to pay victims restitution.
    FILE - Elizabeth Holmes, founder and CEO of Theranos, arrives at the federal courthouse for jury selection in her trial, Tuesday, Aug. 31, 2021, in San Jose, Calif. A Fortune magazine reporter whose story helped turn Holmes into a Silicon Valley sensation came to court Thursday, Nov. 18 to explain how he ended up feeling like a pawn in the entrepreneur's promotion of what she called a revolutionary blood-testing technology.

    Source: Business Insider

     

    Legal experts told Insider it was unlikely Holmes would get 20 years at sentencing, but she probably wouldn't get off without serving any time either.
    Theranos founder Elizabeth Holmes in a black suit jacket in a San Jose courtroom
    Holmes was not taken into custody following the verdict and was to remain free until her sentencing on a $500,000 bond secured by property.
    Theranos founder Elizabeth Holmes and her partner Billy Evans stand outside a courtroom with a crowd of people nearby
    Since the conviction, Holmes and Theranos have been the focus of a Hulu limited series, "The Dropout," based on the ABC News podcast of the same name.
    Amanda Seyfried as Elizabeth Holmes in "The Dropout" on Hulu (left); Elizabeth Holmes (right)
    Amanda Seyfried in "The Dropout" (left); Elizabeth Holmes (right)

    Holmes is played by Amanda Seyfried in the dramatized series, which asks the question, "How did the world's youngest self-made female billionaire lose it all in the blink of an eye?"
    Amanda Seyfried dressed in black on the phone sitting on the floor
    Amanda Seyfried in "The Dropout."

    Source: Hulu

    The show premiered March 3, 2022, and also stars Naveen Andrews as Balwani, Holmes' right-hand man at Theranos.
    Naveen Andrews and Sunny Balwani

    Source: Business Insider

     

    In May 2022, Holmes pleaded with a judge to toss her conviction.
    In this Monday, Nov. 2, 2015 file photo, Elizabeth Holmes, founder and CEO of Theranos, speaks at the Fortune Global Forum in San Francisco.

    Source: Business Insider

     

    In a 24-page filing on May 27, Holmes' attorneys argued for her acquittal, saying the evidence was "insufficient to sustain the convictions."
    Elizabeth Holmes and partner Billy Evans pause outside of federal court after she was found guilty on 4 of 11 accounts faced in her fraud trial in San Jose, California, January 3, 2022. - Fallen US biotech star Elizabeth Holmes was convicted on Monday of defrauding investors in her blood-testing startup Theranos, in a high-profile case seen as an indictment of Silicon Valley culture. Jurors took seven days of deliberations to reach their verdict, finding her guilty of four counts of tricking investors into pouring money into what she claimed was a revolutionary testing system.

    They wrote, "Because no rational juror could have found the elements of wire fraud and conspiracy to commit wire fraud beyond a reasonable doubt on this record, the Court should grant Ms. Holmes' motion for judgment of acquittal."

    "Even if Ms. Holmes committed wire fraud against an investor (she did not) and even if Mr. Balwani committed wire fraud against an investor, that does not prove a conspiratorial agreement between them, nor does it prove that Ms. Holmes willfully joined any agreement," the attorneys continued in the filing.

    The presiding judge tentatively denied Holmes' request in September.

    But that wasn't the end: Holmes filed three motions requesting a new trial, one of which centered on the testimony of a prosecution witness who allegedly went to Holmes' house in August and expressed regret that he helped convict her.
    SAN JOSE, CA - DECEMBER 23: Billy Evans walks with his partner Theranos founder and former CEO Elizabeth Holmes and her mother Noel Holmes as they leave the Robert F. Peckham Federal Building on December 23, 2021 in San Jose, California. Jury deliberations continue in the Elizabeth Holmes fraud trial as she faces charges of conspiracy and wire fraud for allegedly engaging in a multimillion-dollar scheme to defraud investors with the Theranos blood-testing lab services.
    The witness was former Theranos lab director Adam Rosendorff. According to an account of the incident from Billy Evans, Holmes' partner, Rosendorff showed up at their home looking "disheveled" and said he felt "guilty."
    SAN JOSE, CA - DECEMBER 23: Billy Evans walks with his partner Theranos founder and former CEO Elizabeth Holmes and her mother Noel Holmes as they leave the Robert F. Peckham Federal Building on December 23, 2021 in San Jose, California. Jury deliberations continue in the Elizabeth Holmes fraud trial as she faces charges of conspiracy and wire fraud for allegedly engaging in a multimillion-dollar scheme to defraud investors with the Theranos blood-testing lab services.

    "He said when he was called as a witness he tried to answer the questions honestly but that the prosecutors tried to make everybody look bad (in the company)," Evans recalled in an email to Holmes' attorneys about their interaction. "He said that the government made things sound worse than they were when he was up on the stand during his testimony. He said he felt like he had done something wrong. And that this was weighing on him, He said he was having trouble sleeping."

    In another of Holmes' motions for a new trial, she says the prosecution portrayed her relationship with Balwani differently in their respective trials, to her detriment.

    In the final motion, Holmes said she was denied emails showing prosecutors failed to take appropriate steps to preserve a Theranos database that she claims would have helped her defense, even though the government furnished these materials when Balwani was on trial.

    Holmes notched a small victory when the presiding judge ordered an evidentiary hearing regarding Rosendorff's testimony and appearance at her home. This hearing meant that Holmes' sentencing was postponed from October 17, 2022, to November 18 of that year.
    SAN JOSE, CA - January 03: Theranos founder Elizabeth Holmes, center, and her family leave the Robert F. Peckham Federal Building and U.S. Courthouse after the jury found her guilty on four counts in San Jose, Calif., on Monday, Jan. 3, 2022. Holmes was found guilty of four counts of defrauding investors, each carrying a maximum penalty of 20 years in prison.
    The evidentiary hearing proved useless to Holmes, though, as witness Rosendorff said he stood by his initial testimony and only went to her home because he was "distressed" at the idea of Holmes' child growing up without a mother.
    SAN JOSE, CALIFORNIA - DECEMBER 17: Theranos founder and former CEO Elizabeth Holmes leaves the Robert F. Peckham Federal Building on December 17, 2021 in San Jose, California. Lawyers made their closing arguments in the Elizabeth Holmes fraud trial and the jury will begin deliberations. Holmes is facing charges of conspiracy and wire fraud for allegedly engaging in a multimillion-dollar scheme to defraud investors with the Theranos blood testing lab services.

    "At all times the government encouraged me to tell the truth and only the truth," Rosendorff clarified at the hearing.

    "I don't want to help Ms. Holmes," Rosendorff added. "The only person that can help her is herself. She needs to pay her debt to society."

    On November 8, the presiding judge denied all three of Holmes' motions for a new trial, paving the way for sentencing.
    A judge holding a gavel in a courtroom.

    Days before her sentencing, Holmes' attorneys asked that she get no more than 18 months, preferably under house arrest. They submitted 130 letters from friends and family — spanning everyone from Senator Cory Booker to even an ex-CDC chief — pleading for leniency.

    In the end, Holmes' friends and family didn't get their wish. On November 18, 2022, Holmes was sentenced to 135 months, or 11.25 years, in prison with three years of supervised release beginning on April 27. "I stand before you taking responsibility for Theranos. I loved Theranos, it was my life's work," Holmes said through tears at the hearing.
    Former Theranos CEO Elizabeth Holmes on November 18, 2022 in San Jose, California. Holmes appeared in federal court for sentencing after being convicted of four counts of fraud for allegedly engaging in a multimillion-dollar scheme to defraud investors in her company Theranos, which offered blood testing lab services.

    Source: KRON, Insider

    Meanwhile, Balwani's trial began in March 2022 and also returned a conviction. He was found guilty in July on all 12 counts brought against him, and in early December Balwani was sentenced to nearly 13 years in prison with three years of probation. As with Holmes, restitution will be decided at a later date. The judge ordered Balwani to self-surrender on March 15, 2023.
    sunny balwani
    Former Theranos COO Ramesh "Sunny" Balwani and his legal team leave the Robert F. Peckham Federal Building on July 7, 2022 in San Jose, California.

    Source: Insider

    Holmes appealed her conviction in December 2022, and US prosecutors said in recent court filings that she "continues to show no remorse to her victims" and is currently living on an estate that costs $13,000 a month.
    Elizabeth Holmes Attends Court Hearing
    Holmes attending a court hearing.

    Source: Insider

    In February 2023, a court filing revealed Holmes recently gave birth to a second child. She also asked the judge to delay the start of her prison sentence to allow her to remain free while she appeals her conviction.
    Elizabeth Holmes sitting in court.
    Holmes in a federal court in San Jose, California, on November 18, 2022.

    "Ms. Holmes has deep ties to the community: She is the mother of two very young children; she has close relationships with family and friends, many of who submitted letters at sentencing vouching for her good character; and she volunteers with a rape crisis and counseling organization," the filing said.

    Source: Insider

     

    In April, the judge denied Holmes' request to stay out of prison during appeal.
    Former Theranos CEO Elizabeth Holmes alongside her boyfriend Billy Evans, walks back to her hotel following a hearing at the Robert E. Peckham U.S. Courthouse on March 17, 2023 in San Jose, California.
    Convicted Theranos founder Elizabeth Holmes.

    The decision meant she was still set to report to prison on April 27, as scheduled.

    Source: Insider

    But Holmes appealed the judge's decision. In accordance with court rules, since she was on bail when she filed the motion, her prison reporting date was automatically delayed.
    Former Theranos CEO Elizabeth Holmes alongside her boyfriend Billy Evans, walks back to her hotel following a hearing at the Robert E. Peckham U.S. Courthouse on March 17, 2023 in San Jose, California. Holmes appeared in court for a restitution hearing.

    Balwani previously used the same tactic and was able to push back his initially scheduled prison reporting date by a month — but still ultimately reported to prison on April 20.

    Source: Insider

    In a May 7 profile in The New York Times, Holmes portrayed herself as a doting mother of two who wears a "bucket hat and sunglasses" and walks about the San Diego Zoo. She also wants to be called "Liz" as this is the "real Elizabeth."
    Elizabeth Holmes.
    She said that with her partner Evans, she spent six months in 2019 traveling the country in an RV and sleeping in campgrounds and Walmart parking lots.
    Elizabeth Holmes and Billy Evans.
    Holmes admitted in her interviews with The Times that she had built a persona that wasn't "authentic" – wearing black turtlenecks, red lipstick, messy blonde hair, and using an exaggerated masculine voice.
    Elizabeth Holmes in 2016.
    In May, Holmes was again denied her request to remain free while she appeals her conviction, and a judge ordered her to report to prison May 30. She and Balwani were also ordered to pay $452 million in restitution to victims of Theranos' fraud.
    Elizabeth Holmes.

    Source: Insider, Insider

     

    On May 30, Holmes reported to Federal Prison Camp in Bryan, Texas, a minimum-security women's prison about 100 miles from Houston, where she grew up, to begin serving her sentence.
    Elizabeth Holmes arrives at the Federal Prison Camp in Bryan, Texas, on May 30, 2023.
    Elizabeth Holmes arrives at the Federal Prison Camp in Bryan, Texas, on May 30, 2023.

    Source: Insider

     

    In the time since she's been incarcerated, her prison term has been shortened. Previously, Holmes had her sentenced shortened to roughly 9.5 years compared to her original 11.25-year sentence.
    elizabeth holmes
    Disgraced Theranos CEO Elizabeth Holmes, left, is escorted by prison officials into a federal women’s prison camp on Tuesday, May 30, 2023, in Bryan, Texas.

    The Bureau of Prisons did not immediately respond to Insider's request for comment on how Holmes' release date was calculated.

    Release date calculations typically take into account factors like a person's surrender date, jail-time credit, the completion of substance abuse programs, and good behavior.

    Source: Insider


    Maya Kosoff, Paige Leskin, and Áine Cain contributed to earlier versions of this story.

    Holmes's sentence is reduced again. In May 2024, Bureau of Prisons records showed that Holmes' release date is now scheduled for August 16, 2032.
    Elizabeth Holmes, as see through a window, placing a black handbag on a table in a room with security guards.
    Elizabeth Holmes.

    Prison officials previously moved Holmes's release date to December 29, 2032. Shortening her sentenced by an additional three months brings Holmes' original sentence down by about two full years.

    Holmes is still serving her time in Federal Prison Camp Bryan in Texas. Holmes's appeal is scheduled to go before a federal appeals court on June 11.
    Elizabeth Holmes hugging her father, Christian Holmes IV as her mother, Noel Holmes, looks on.
    Elizabeth Holmes hugging her father, Christian Holmes IV as her mother, Noel Holmes, looks on.

    In May 2023, a court denied Holmes' motion to remain free on bail while she appealed her trial, remanding her to Federal Prison Camp Bryan in Texas, a minimum security women's prison. Federal appeals courts in San Francisco will hear opening arguments in her appeal and that of her co-defendant, Sunny Balwani, on June 11.

    Read the original article on Business Insider
  • Palm Beach housekeepers are raking in $150,000 salaries as the rich flock to Florida, report says

    Aerial View of Luxury Homes in Palm Beach, Florida - stock photo.
    Palm Beach, Florida.

    • Some housekeepers in parts of Florida are earning $150,000 salaries, CNBC reported.
    • Real-estate prices in the Sunshine State have surged as millionaires flock to the area.
    • Demand is also increasing for other roles like butlers, nannies, and chefs.

    Experienced housekeepers in parts of Florida are enjoying huge salaries of between $120,000 to $150,000, CNBC reported.

    Demand for such positions has surged in areas like Palm Beach as the rich continue to flock to Florida from high-tax states such as New York.

    With wealthy homeowners also battling big hotels and businesses for cleaners' services, the typical pay for housekeepers in the Sunshine State has soared from around $25 an hour in 2020 to $45 or $50 an hour in 2024, some agencies said, per CNBC.

    Many are also getting health care, 401(k) plans, and benefits, the report said.

    "I have been placing staff for 30 years, and I've never seen anything like this," April Berube, the founder of The Wellington Agency, a household staffing agency, told the outlet.

    "We've seen such a boom from people relocating, especially Palm Beach and Miami," she said. "For housekeepers it's wonderful. For us it's extremely difficult. It's a severe shortage."

    Demand has also surged for other roles, including butlers, drivers, and chefs, per CNBC.

    The influx of wealthy homeowners has also seen house prices rocket in South Florida, with the average sale price of a home in Palm Beach exceeding $20 million in the third quarter of 2023.

    Many are being lured to the state by the lack of income tax and year-round good weather, as Business Insider previously reported.

    Some of the big names to have made the move include Oracle founder Larry Ellison, who purchased a $173 million estate in Manalapan, a town near Palm Beach, in 2022, and Jeff Bezos, Florida's richest billionaire, who owns three properties on South Florida's Indian Creek Island.

    Donald Trump also has his infamous Mar-a-Lago resort in Palm Beach.

    The former president moved his primary residence from New York City to Florida in 2019.

    Read the original article on Business Insider
  • Biden needs popular down-ballot Democrats to rally support for him if he’s going to win in November

    Biden
    President Joe Biden.

    • Presidential nominees generally drive voter turnout for their respective parties.
    • But with many Democrats boasting higher favorability numbers than Biden, their popularity could boost his campaign.
    • Swing-state Senate candidates like Bob Casey Jr. and Tammy Baldwin could be Biden's biggest assets.

    In most presidential elections, the top-of-the-ticket candidates are the top draws for their respective parties, amassing votes that often help down-ballot candidates win close races.

    But for several popular swing-state Democrats, their popularity could actually help drive turnout in support of President Joe Biden's reelection bid — a reversal of the usual presidential coattail effect.

    It's a dynamic that might keep Biden in the White House for four more years. He remains locked in a close contest with former President Donald Trump in must-win swing states like Pennsylvania and Wisconsin.

    The Pennsylvania election

    In Pennsylvania, the latest RealClearPolling average showed Trump leading Biden by a little over two points. But the more popular Democratic Sen. Bob Casey Jr. is averaging a more robust 4.8% lead over his GOP rival, David McCormick.

    Casey, an ex-state auditor general and one-time state treasurer who is seeking a fourth term, has held statewide office in Pennsylvania for decades. Such a track record gives him a connection with many voters that Biden may lack, especially in an era where ticket-splitting has become less commonplace in federal races. (One notable advantage for Biden: his decadeslong political career in Delaware made him a familiar face in the Philadelphia media market.)

    In an interview with The Washington Post, Casey said he expects a tighter contest as more people become familiar with McCormick.

    "The way I see it, my race is different than the president's because my opponent is not as well known as his opponent," he told the newspaper. "I think in the end we'll probably see similar numbers in both races."

    Bob Casey
    Sen. Bob Casey Jr. of Pennsylvania.

    Casey's race is poised to be a major draw, especially for Democratic voters who want to see the party continue controlling the US Senate. McCormick, who ran for the GOP Senate nomination in 2022, is a top recruit for the party this cycle.

    And in Pennsylvania, which Biden won by one point over Trump in the 2020 election, the race could be decided by a few thousand — or a few hundred — votes.

    Democratic Rep. Susan Wild, who has represented a Lehigh Valley swing district since 2018, told the Post that a solid victory in a seat like hers will be critical for the president's chances this November.

    "I truly believe that Biden only wins Pennsylvania if the down-ballot people, like me, win. I strongly believe that we push him," she said.

    The Wisconsin election

    In Wisconsin, where he narrowly won in 2020, Biden is locked in a tight race with Trump: the RealClearPolling average in the Badger State has Trump leading the president by less than half a percentage point.

    However, in two major surveys of the state's US Senate race, Democratic incumbent Tammy Baldwin boasted wide leads over her likely GOP opponent, Eric Hovde. A recent Quinnipiac University poll had Baldwin ahead of Hovde by 12 points, while a New York Times/Siena College poll conducted from late April through early May showed the senator up by nine points.

    Baldwin's popularity in Wisconsin could also give Biden a significant lift in the state, especially with renewed enthusiasm among Democratic voters over redrawn state legislative maps, which are poised to afford the party significant gains in the upcoming election.

    Read the original article on Business Insider
  • Saudi Arabia’s futuristic Neom project aims to embrace green flying taxis, and will have 4 airports

    The Line, NEOM
    The planned design of The Line in Neom.

    • Saudi Arabia is planning a zero-carbon region called The Line in its Neom development project.
    • Neom is working with Volocopter on electric flying taxis for transportation.
    • While it's promoting sustainability, Saudi Arabia has indicated it won't phase down fossil fuels.
    • This article is part of "Future of Sustainable Aerospace," a series exploring the industry's green trends. 

    Of all the glitzy projects Saudi Arabia is embarking on, perhaps the most eccentric is Neom. The kingdom plans to spend over half a trillion dollars transforming the desert into 10 futuristic regions, including a floating port city and a yachting hub.

    The most famous of them is The Line, a 0.12-mile-wide and 105-mile-long city with a mirrored facade. Saudi Arabia hopes Neom will become home to nine million people in a "vertical garden city" with daily essentials within a five-minute walk.

    It says high-speed rail will take citizens from one end to the other in 20 minutes. It plans to have no roads, traffic, or pollution, with everything powered by renewable energy. And it aims to gather much more data about residents and services than other so-called smart cities do.

    The Line, NEOM
    A design for The Line.

    It plans to have four airports to connect it internationally. Only one, Neom Bay Airport, is currently operating. London Heathrow is its only destination outside the Middle East.

    The route is run by Saudia, the kingdom's flag carrier, which on Monday announced the largest aviation order in Saudi history, to the tune of 105 Airbus narrowbody jets.

    The kingdom hopes more investment in aviation — including the launch of a new airline, Riyadh Air — will help promote it as a tourist destination.

    Boom Supersonic, an American startup designing an airliner that could cross the Atlantic in 3.5 hours and use only sustainable aviation fuel, announced last November an investment from Neom. It didn't disclose the size of the investment.

    Since 2021, Neom has worked on a joint venture with Volocopter, a German company designing electric vertical-takeoff-and-landing aircraft, better known as eVTOLs or flying taxis. Powered by batteries, they wouldn't emit any carbon.

    Neom, which has ordered 15 of its aircraft, invested $175 million in Volocopter's Series E funding round in November 2022.

    Borja Blond, the CEO of the Neom-Volocopter joint venture, described its ambitions last November during a presentation at the Dubai Air Show, which Business Insider attended.

    The plan is for Neom to operate three kinds of Volocopter's eVTOLs: the VoloCity, the VoloRegion, and the VoloDrone. Neom aims to have a fleet by 2025, though it's not clear how many aircraft that would entail.

    "We really believe that Volocopter is close to getting their aircraft certified," Blond said.

    Volocopter is aiming to be certified by the European Union Aviation Safety Agency in time for the Olympics next summer in Paris, where it plans to run its first service.

    Germany-based company Volocopter 2X's air taxi is flown by test pilot Damian Hischier during a demonstration of South Korea's Urban Air Mobility services at Gimpo International Airport in Seoul in November 11, 2021
    Volocopter's VoloCity in flight.

    The drone, designed to carry up to 330 pounds, would be used for some cargo.

    Since the VoloCity is designed to travel only 35 kilometers, or about 22 miles, at a time, it'd function as a flying taxi to take people around a region like The Line.

    Neom plans to use the VoloRegion, with its top speed of 137 mph and range of 220 kilometers, to take passengers between regions, though the presentation said it could also work intraregionally.

    "We need to think about connecting all those regions within a seamless manner and being very well aligned with the vision that we have here," Blond said. "Basically we want to operate with 100% renewable energy."

    Neom plans to leave 95% of the region untouched, serving as one of the world's largest nature reserves. The Line is designed with huge mirrors partly to reflect the vast natural landscape.

    Blond said Neom does not "have the opportunity to build big runways, a lot of airports," adding that that makes eVTOLs a good solution for Neom's transportation needs.

    He said the goal is to create safe flight routes for the VoloRegion aircraft over less populated areas.

    "We want to bring a blueprint to the rest of the world: This is what we have done. This is how we can progress to future cities," Blond said.

    Saudi Arabia won't phase down fossil fuels

    But while the country is pushing renewable energy at home, it's pushing for huge profits from fossil fuels abroad.

    Saudi Arabia's Vision 2030 plan — which includes Neom and The Line — aims to make its economy less reliant on oil, but the kingdom recently suggested it won't decrease its exports of the fossil fuel.

    Asked at December's COP28 summit whether he'd agree to phasing down fossil fuels, the country's energy minister said, "Absolutely not," Bloomberg reported.

    An investigation by Channel 4 and the Centre for Climate Reporting published last November said officials from Saudi Arabia's Oil Sustainability Program acknowledged the country had a state-backed plan to target Africa and Asia with oil products.

    Speaking about the dissonance between Saudi Arabia's green-energy plans and its status as the top oil exporter, Jim Krane, an energy-geopolitics expert at Rice University, told Time last year: "They like to have their cake and eat it.

    "The Saudis' ambition is to be the last man standing in the global oil market," he added. "They want the last drop of oil drilled to come from a Saudi field."

    Read the original article on Business Insider
  • Fear among some swing-state voters that Trump would refuse to leave office could help Biden, report says

    Trump
    Former President Donald Trump.

    • Political researchers say some voters are worried Trump would not leave the White House if reelected.
    • The thought is pushing some voters toward President Joe Biden, Bloomberg reported.
    • That's despite concerns over Biden's age, inflation, and continued US support for Israel.

    President Joe Biden has consistently claimed that Donald Trump is "determined to destroy American democracy," and it appears that such a fear is slowly spreading among some voters in crucial swing states.

    They are worried that the former president would refuse to leave office at the end of a second term if he were reelected to the White House in November, Bloomberg reported, citing political researchers.

    Anxiety appears to be building over the former president's often charged, authoritarian rhetoric and incidents such as the January 6, 2021 riot, when Trump supporters — with his encouragement — stormed the Capitol building in an attempt to keep him in office following his defeat in the 2020 election.

    Russell Wheeler, a nonresident senior fellow in the Brookings Institution's Governance Studies program, told Business Insider that it seemed unlikely Trump would be able to get a repeal of the 22nd Amendment if he's in office — which would require either a two-thirds majority vote in the House and Senate or legislatures of two-thirds of the states to call for a convention.

    He said that the "greater worry" was Trump "declaring a national emergency and refusing to allow the transition," particularly if the Democrats were to win the 2028 presidential election.

    Trump has toyed with the idea of a three-term presidency

    Jacob Chansley
    Jacob Chansley.

    In a quip on Fox News in December 2023, Trump said he wouldn't be a dictator "except for day one" of his presidency.

    "I want to close the border, and I want to drill, drill, drill," Trump said, before characteristcally later claiming in an interview with Time that the comment "was said in fun, in jest, sarcastically."

    The former president has also continually made inflammatory comments over extending his presidency past two terms, a move prohibited by the 22nd Amendment stipulating that "no person shall be elected to the office of the President more than twice."

    In 2020, Trump told a rally in Oshkosh, Wisconsin: "We are going to win four more years. And then after that, we'll go for another four years because they spied on my campaign. We should get a redo of four years."

    Despite seemingly dialing back such aspirations last month, when he told Time he intended to serve just the four years, Trump again hinted that he might take a different approach at the National Rifle Association's annual meeting last week: "You know, FDR 16 years — almost 16 years — he was four terms. I don't know, are we going to be considered three-term? Or two-term?"

    Concerns over the possibility that he could violate the 22nd Amendment appear to be very real, leading some toward the idea of voting for Biden despite of significant apprehension about his age, rampant inflation, and the US's continued support for Israel in the Gaza conflict, the Bloomberg report said.

    Sarah Longwell, a Republican political strategist and CEO of the communications firm Longwell Partners, told the outlet that her company had come across such worries in focus groups.

    In a video shared by Longwell, Bloomberg said a moderator asked a group of undecided swing-state voters: "Does anybody think he may not abide by the 22nd Amendment of the Constitution and leave office after the 2028 election? Anyone worried about that?"

    Seven of the eight participants are said to have raised a hand, per the report.

    Seiji Carpenter, a vice president at David Binder Research with 10 years of experience running Democrat focus groups, also told Bloomberg that his firm had seen the issue cropping up: "We were talking to Latino men and Asian American-Pacific Islander women in battleground states, and they went straight to the issue of, what if Trump won't give up power?"

    "What we've seen so far indicates a real concern there," he added.

    Despite such concerns, a swing-state poll last week from The New York Times, The Philadelphia Inquirer, and Siena College showed that Trump led Biden in five of six states polled from April 28 to May 9, 2024.

    It's not the first time the 22nd Amendment has been an issue in this election cycle.

    Florida Gov. Ron DeSantis previously used the amendment to attack Trump, saying that it takes "two terms as president to be able to finish this job."

    "And I don't think he could fix it in one single four-year term," he added.

    Read the original article on Business Insider
  • 8 facts about McDonald’s hamburgers that might surprise you

    mcdonald's hamburger, fries, and drink on a tray
    McDonald's hamburgers are famous, but you might not know these interesting facts about them.

    • The first McDonald's restaurant wasn't primarily a burger restaurant.
    • The first "Big Mac" sold for 45 cents and was named by a 21-year-old secretary.
    • The first Happy Meal was called a "Menu Ronald."

    The first McDonald's franchise opened in 1955, and the chain has since become one of the most iconic food brands in history.

    While McDonald's does have a varied menu, the chain is arguably most famous for its burgers. The Big Mac, which was introduced in 1967 and originally sold for just 45 cents, is so iconic that casual-dining chains like Chili's are now attempting to piggyback off its success with a similar burger. 

    From who invented the Big Mac to how many McDonald's burgers are sold every second, these facts about McDonald's burgers might surprise you. 

    The first McDonald's restaurant, before it became the chain it is today, wasn't primarily a burger restaurant.
    ray kroc
    Founder and chairman of McDonald's Corporation, Ray Kroc, stands outside one of his franchises, holding a hamburger and a drink.

    According to the McDonald's website, in 1954, a Multimixer milkshake machine salesman by the name of Ray Kroc came across a small restaurant in San Bernardino, California, run by the McDonald brothers.

    They opened the location in 1940, according to McDonald's. The very first McDonald's Bar-B-Q menu was large and its most famous offering was hot dogs. However, in 1948, the McDonald brothers switched the concept to become a burger restaurant and reduced the restaurant's offerings to just nine items: hamburgers, cheeseburgers, soft drinks, milk, coffee, potato chips, and a slice of pie.

    In 1949, potato chips were swapped with french fries and McDonald's began selling milkshakes.

    Due to the restaurant's self-service counter, there was no need for waiters or waitresses. Burgers were cooked ahead of time, wrapped in paper, and kept warm under a heat lamp, which meant customers received their food in record time.

    Amazed by the efficiency of the restaurant, Kroc wanted in. He went on to become the first McDonald's franchise agent and the founder of the McDonald's Corporation.

    In 1948, you could get a McDonald's burger for just 15 cents.
    mcdonalds old
    On the sign is "Speedee" McDonald's original chef logo.

    At the original McDonald's locations, before Ray Kroc revolutionized the company, a burger cost just 15 cents, according to the company.

    McDonald's has reportedly sold hundreds of billions of burgers during its years in operation.
    mcdonald's employee burgers
    A McDonald's employee preparing burgers.

    From the beginning, McDonald's has touted its burger sales in its advertising. Mother Jones reported that in 1955, McDonald's claimed it had sold over 15 million burgers — this was just seven years after the McDonald brothers closed their barbecue stand and reopened it as a burger joint.

    Today, it's estimated that McDonald's has served billions and billions of burgers, with the Wall Street Journal estimating the chain sold its 300 billionth burger around 2013. 

    The first Big Mac sold for 45 cents.
    big mac 1977
    Product shot of a McDonald's Big Mac hamburger in 1977.

    According to McDonald's, the first Big Mac-esque sandwich was created by owner and operator Jim Delligatti of Pittsburgh in 1967, but it wouldn't be released nationwide until 1968.

    It included two beef patties, special sauce, lettuce, cheese, pickles, and onions on a sesame-seed bun. 

    Esther Glickstein Rose, a 21-year-old secretary for the company's advertising department in 1967, came up with the "Big Mac" name.
    big mac
    McDonald's Big Mac.

    The Associated Press reported she came up with the name on the fly when an executive running to a board meeting asked for a name nomination for the company's new burger. The name "Big Mac" stuck and went on to become one of the best-known product names of all time.

    However, it wasn't until 1985 that McDonald's Corp. finally recognized Rose had come up with the name.

    McDonald's sells roughly 75 hamburgers every second.
    McDonalds coronavirus employee mask
    A McDonald's employee handing a customer their bag of food.

    USA Today reported that the company sold roughly 75 burgers every second in 2013, or 4,500 burgers every minute. 

    A simple hamburger from McDonald's can be a good source of protein.
    McDonald's hamburger
    McDonald's hamburger.

    According to the nutritional info listed for a McDonald's hamburger, it contains 25% of your daily value of protein. While McDonald's food in general may not be healthy for you in excess, there are some menu items that are healthier than others in moderation.

    "The plain burger is only 250 calories," dietitian Bonnie Taub-Dix told Taste of Home in 2019. "Plus, in comparison to other menu items, the sodium here is relatively reasonable."

    The first Happy Meal, which included a hamburger, small fries, and a small sundae, was called a "Menu Ronald."
    happy meal
    This October 13, 2010 photo shows a McDonald's Happy Meal complete with a "Star Wars" toy.

    The original idea for the Happy Meal is said to have come from a McDonald's employee in Guatemala named Yolanda Fernández de Cofiño. Fernández de Cofiño developed the meal deal to cater to kids visiting her restaurant.

    In 1979, McDonald's rolled out its first Happy Meal nationwide. The first one was circus-themed. McDonald's advertising executive Bob Bernstein introduced the idea of swapping the small sundae for a plastic toy.

    In 2021, McDonald's announced the chain would begin phasing out plastic toys from its Happy Meals in an effort to be more environmentally conscious. 

    "Making our toys out of renewable, recycled, or certified materials will result in about a 90% reduction of fossil fuel-based plastic in Happy Meal toys [compared with 2018]," McDonald's said in a statement to NPR.

    Read the original article on Business Insider
  • I quit my dream job at Goldman Sachs to care for my mother. I felt bad for myself but realized the simple things are what truly matter.

    Cassindy Chao standing at the airport.
    Cassindy Chao (pictured above) says she chose family over money and she's richer because of it.

    • Cassindy Chao, 55, is a former finance executive turned matchmaker.
    • After six years at Goldman Sachs, Chao decided to quit her job to take care of her ill mother.
    • She said the decision allowed her to spend time with family, marry, and have children.

    This as-told-to essay is based on a conversation with Cassindy Chao, a 55year-old matchmaker from Oakland, California, about quitting her dream job as a finance executive. It's been edited for length and clarity.

    I'm a 55-year-old matchmaker who used to live the "Crazy Rich Asians" lifestyle, working in finance.

    I went into that line of work because I knew it was lucrative and felt like a responsible choice. After graduating from Wellesley College, majoring in Chinese studies and economics, I worked at a couple of finance jobs before being poached by Goldman Sachs in Hong Kong.

    At Goldman Sachs, I made over $376,000 annually. I was on top of the world, traveling and buying myself jewelry and designer clothes. It was a very luxurious lifestyle. My co-workers and I would fly to Thailand, Japan, or Vietnam on weekends. I was in the center of it all.

    Years after starting the new job in 1993, my mom got sick with ovarian cancer, and it was devastating. I quit Goldman Sachs in 1999 and moved back home to the Bay Area, where I became lonely and incredibly sad.

    It was tough, at first, but now I can say leaving my dream job was all worth it.

    I went from international jet setter to a stay-at-home caregiver

    When my mom got sick, I tried to fly back and forth from Hong Kong to the Bay Area to care for her, but it was unmanageable. After about three months of traveling back and forth, I quit Goldman Sachs. It was awful. I went from an international jet setter with a beautiful showpiece duplex apartment and maid to living in an old four-bedroom home.

    Instead of jewelry and expensive dinners, my days were filled with brewing tea and soup for my mom and driving her to doctor's appointments.

    Over time, I watched people who worked below me at the company do incredibly well. I visited friends with many Hermès bags in their closets. They'd call me and chat about their far-flung excursions and show off their homes filled with priceless art. I initially felt sorry for myself, watching them lead my formerly fabulous life.

    It was hard to come to terms with my new reality

    I wanted to balance both careers, but being my mom's caregiver was practically a full-time effort — chemo, blood tests, tumor assays, finding alternative medicines, getting second opinions, driving, managing her records, bill payments, and insurance negotiations. I didn't want to hire a caretaker for my mom.

    All of a sudden I had to budget and save money. But over time, I felt bad for feeling sorry for myself and realized the simple things are what truly matter.

    I loved my family and the priceless time I got to spend with my mother. At Goldman, it was frenetic — deals, reports, deadlines, meetings, conferences, presentations. Back in the States, there was still plenty to do, but life slowed down significantly, and I could actually relax.

    My mom said I'd never get married and have a family if I stayed at Goldman Sachs

    Before quitting, I worked crazy hours, traveled constantly, and chased after Ivy League banker men out of my league. I ignored my mom's advice, as I enjoyed my life.

    I was dating several other finance guys when I met my now-husband Fred, an engineer, at a party in Hong Kong. He seemed friendly and happy but wore a Jackie Chan T-shirt, shorts, and Teva sandals. My first thought was, "Oh, yuck."

    We instantly clicked, but I saw him more as a friend.

    However, during the first year of caring for my mom, Fred showed up where the other men didn't. He was solid and always there, making me realize he was a real keeper. When I decided to move back to the US permanently, Fred packed up all my stuff and brought it back for me. We started dating seriously, and he grew to have a tremendous bond with my mom. That same year he proposed, we married, and he moved to California to be with me.

    He's a goofy engineer, not a slick, rich finance guy, different from the other men I dated. If I stayed in Hong Kong, I would probably have chased after unavailable men for years. Instead, we've been happily married for over 20 years.

    Was it worth it to leave Goldman Sachs?

    Now, I can say yes. My mom lived for 10 years as an end-stage ovarian/liver cancer survivor before passing. I mourned her and my former high-flying life when she died, but she taught me how to thrive in any situation.

    My mom's ability to make the best of any situation inspired me. She made friends with her medical team, buying gifts and knitting hats. During chemo, she would say, "I'm going to be out of it for 14 days, but afterward, let's schedule seven days of fun." We'd spend days exploring the city, eating delicious treats, and socializing with friends.

    Chao with her mother Cecilia and her first grandchild.
    Chao with her mother Cecilia and her first grandchild.

    I'm not rich, but I'm wealthy in happiness. I have a great marriage and three terrific kids who are now young adults. Although not everyone wants marriage and kids, I'd always assumed I'd have it.

    Now that I'm older, I've found a new career I love as a matchmaker. It's not work; I love meeting so many interesting people all the time and nudging them to find someone super special.

    I chose family over money, and I'm richer because of it.

    If you quit a six-figure dream job and want to share your story, email Manseen Logan at mlogan@businessinsider.com.

    Read the original article on Business Insider
  • Costco has 3 ways to shop without a membership, but the math still favors paying the fee

    People outside a Costco Wholesale store
    You can shop at Costco without a membership, but it doesn't really make sense to.

    • Costco has been clamping down shoppers using membership cards that don't belong to them.
    • There are still ways to shop without a membership: online, with a gift card, or as a member's guest.
    • The extra charges and hassle of workarounds can quickly add up to more than the annual fee, though.

    Costco's Netflix-style crackdown on unauthorized membership sharing over the past year raises a perennial question about how to access the jumbo packs of toilet paper, tubs of peanut-butter pretzels, 40-pound bags of dog food, and other staples without signing up for a membership.

    Access to the warehouse club and its bulk-price deals is primarily reserved for card-carrying shoppers with Gold Star, Executive, or Business memberships, which start at $60 per year and include two access for two shoppers who live in the same household (or work for the same business).

    Still, there are a few ways to shop Costco's selection without paying the fee. Here are three:

    1. Shop online without a Costco membership

    While some of Costco.com is reserved for members, non-members are able to buy items through the site's Same-Day option, on Instacart, or with a brand new partnership with Uber Eats, where about 2,000 fresh, frozen, grocery, and household items are available for delivery.

    The best prices on those platforms are reserved for members only, so the savings compared to another retailer, like Walmart or Amazon, might not be as substantial for non-members. Uber says members will pay 15% to 20% less than non-members, and non-members may be assessed a 5% surcharge on some orders processed through Instacart.

    Analysis from Insider's Reviews team found the best prices on Costco items are found in-person at a warehouse, while online member pricing was slightly higher, and non-member prices were higher still.

    For example, a 30-roll pack of toilet paper was available in-store for $19.99, but on Instacart cost $21.85 for members and $24.87 for non-members.

    The Insider team created a sample shopping cart of popular items that totaled $131.10 for a non-member shopping via Instacart, but just $96.60 for a member shopping in-store, a savings of $34.50. In that scenario, the $60 membership fee basically pays for itself after just two trips to a warehouse.

    2. Use a Costco gift card without a membership

    Another popular workaround is to use a Costco gift card, known as a Shop Card, which allows shoppers to access the warehouse to use the funds.

    The hitch with this approach is that Shop Cards are only available for members to purchase and have a minimum value of $25.

    That $25 would quickly be used up in one visit, and could be a useful hack for helping friends and family stock up on back-to-school supplies, though you might catch some pushback trying to buy $200 more stuff than your gift card is loaded for.

    It's an easy a way to let someone explore the club on their own, without the commitment of a membership, and if they do decide to sign up, the Shop Card funds are redeemable toward the annual fee.

    3. Visit the Costco warehouse as the guest of a member

    Costco's policy allows members to bring two guests with them to the warehouse, but once again there is a hitch: technically only the member is allowed to pay for purchases.

    As with the Shop Card hack, this approach depends on a fair amount of trust between the member and the non-member, not to mention coordinating schedules to make a trip to the warehouse and sort everything out on Venmo afterward.

    Bottom line: It probably makes sense to just pay the fee — it's refundable anyway

    Given the costs and complications of trying to avoid shelling out the $60 membership fee, it actually makes financial sense to just pay the charge for shoppers who will make more than a couple Costco trips per year.

    An Insider's Reviews team found, the prices of bulk-size items can add up quickly, and shaving a few percent off in fees means the breakeven point comes after just a few trips.

    As the company puts it, "rest assured that the cost of membership can be recovered quickly thanks to massive price savings once you start shopping."

    The math starts to get even more interesting when considering whether to upgrade to the $120 Executive level.

    Either way, the real kicker is even simpler: if you don't think the membership is worth it, you can get a refund.

    Read the original article on Business Insider
  • A tax on millionaires might soon pay for universal free community college in Massachusetts

    Massachusetts proposed state budget includes plans for free community college.
    Massachusetts proposed state budget includes plans for free community college.

    • The Massachusetts Senate approved a $58 billion budget that includes free community college.
    • The budget also sets aside $75.5 million for tuition and stipends for low-income students.
    • The state's new tax on millionaires would fund the universal free community college program.

    The Massachusetts State Senate approved a nearly $58 billion state budget that guarantees universal free community college for state residents.

    And it'll all be paid for by the state's millionaire residents.

    In 2022, Massachusetts placed a 4% tax on residents earning $1 million or more a year. In its last fiscal budget, the state set aside $1 billion — collected through the tax — to provide free school lunches to all children in public schools.

    The 2025 budget would fund MassEducate, a state-sponsored program that will cover the cost of community college tuition and fees, all paid for by the state's tax on millionaires. The budget now goes to the state House of Representatives, which has to vote before the fiscal year begins in July.

    If passed, MassEducate will invest $75.5 million of state money to cover tuition and fees.

    President Joe Biden proposed a plan for free community college nationally in his fiscal 2025 budget. There are currently 20 states that offer tuition-free community college education to residents.

    State Sen. Michael J. Rodrigues, chair of the Senate's Ways and Means Committee, said the community college program will "bolster our educated workforce and lay the foundation for generations to come."

    "Tuition-free community college impacts individuals most in need and who otherwise would not be afforded this opportunity," Rodrigues said in a statement. "It will greatly help to keep our workforce graduates stand ready to meet the challenges of a global economy."

    The state's community college program will offer additional assistance to low-income students. The program will also offer stipends of up to $1,200 for books, supplies, and other costs to students who make 125% or less of the state's median income, according to a statement announcing the program.

    The initiative also includes a $10 million "student persistence fund" that aims to help community college students with financial struggles so great they jeopardize their studies.

    Read the original article on Business Insider
  • US officials say North Korea may be planning military action to create chaos ahead of US election, report says

    President Vladimir Putin (R) and North Korea's leader Kim Jong Un (L) shaking hands during their meeting at the Vostochny Cosmodrome in Amur region on September 13, 2023, ahead of planned talks that could lead to a weapons deal with Russian President.
    North Korean Supreme Leader Kim Jong Un and Russian President Vladimir Putin.

    • US officials fear North Korean military action ahead of the US election, NBC News reported.
    • Senior officials told the outlet that such a move could be encouraged by Vladimir Putin.
    • North Korea and Russia have formed close military ties in recent years.

    US officials are preparing for potential North Korean military action — possibly encouraged by Russian President Vladimir Putin — in the run-up to the US election in November, NBC News reported, citing six senior US officials.

    Such a move could be designed to create chaos in another part of the world as the election process ramps up, they said.

    "We have no doubt that North Korea will be provocative this year. It's just a matter of how escalatory it is," one US intelligence official added.

    Following the NBC News report, a campaign spokesperson for Donald Trump said, "The only 'October surprise' will be the look of shock" among reporters when Trump is reelected.

    The officials' warning comes ahead of a likely meeting between North Korean Supreme Leader Kim Jong Un and Putin, which the Kremlin announced earlier this week was "being prepared."

    "President Putin has an active invitation for an official visit to North Korea. The visit is being prepared. We will announce the dates of the trip in due course," Kremlin spokesperson Dmitry Peskov said on Friday, French news agency AFP reported.

    Russia and North Korea have developed closer relations since the start of Russia's full-scale invasion of Ukraine in February 2022.

    For its part, North Korea has sent munitions to Moscow, ostensibly to help Putin's forces in their war against Ukraine, but also to take advantage of the opportunity to test its equipment on the battlefield, according to the Center for Strategic and International Studies think tank.

    In return, North Korea "expects Russia to provide advanced weapons systems and technological know-how to significantly strengthen its defense, nuclear, and space programs," the think tank said.

    The six US officials also told NBC News that the Biden administration was concerned that the relationship could lead to significant developments in Pyongyang's nuclear capabilities, increasing tensions in the Asia-Pacific region.

    However, one official said that China likely does not want instability in the region, and Russia might, therefore, hesitate to get involved ahead of the US election.

    Nevertheless, Rachel Minyoung Lee, a Senior Fellow with the 38 North Program at the Stimson Center, expressed concern that North Korea's strengthening ties with Russia could "embolden" Kim to conduct more aggressive military or diplomatic action in the coming years.

    North Korea submarine
    North Korea's new "tactical nuclear attack submarine" at its launch ceremony in 2023.

    North Korea has already sent a significant amount of military aid to Russia.

    By November 2023, one South Korean lawmaker said North Korea had sent Moscow more than 1 million artillery shells to bolster its war effort.

    But earlier this month, the office of Ukraine's top prosecutor, Andriy Kostin, told Reuters that North Korean-supplied weapons appeared to have a high failure rate.

    "About half of the North Korean missiles lost their programmed trajectories and exploded in the air; in such cases the debris was not recovered," Kostin's office said, citing their examination of debris from 21 of around 50 North Korean-supplied ballistic missiles launched by Russia between late December and late February.

    Read the original article on Business Insider