Clinton Donor, Obama Ambassador Pays Millions to Settle Silicon Valley Fraud Case

Elizabeth Holmes / Getty Images
April 27, 2017

Elizabeth Holmes, a Clinton donor who was named "Ambassador for Global Entrepreneurship" under former President Barack Obama, settled with the state of Arizona for $4.8 million over consumer fraud claims.

Holmes, 33, was the founder and CEO of Theranos, a privately owned Silicon Valley health tech company once valued at $9 billion. Theranos marketed the blood test known as the "Edison" device, which tested blood with a mere finger prick at lower costs. The blood test device ended up being inaccurate, leading Theranos and Holmes to cook the books to hide the flawed test.

Tyler Shultz, an employee of Theranos, uncovered the inaccuracy of the device and leaked documents to save the reputation of his grandfather, former President Ronald Reagan's Secretary of State George Schultz. Theranos was reportedly using a shell company to "'secretly' buy commercial-lab equipment, and improperly created rosy financial projections for investors," according to the Wall Street Journal.

Last week Holmes began to settle lawsuits with some of Theranos' victims. Theranos settled with the state of Arizona for $4.8 million over consumer fraud claims over the "flawed" Edison device blood tests.

"On Monday the company agreed to a ban from operating clinical and retail test laboratories for two years to resolve claims filed by Medicare and Medicaid," the New York Post reported.

Holmes was not shy about stepping into the political world. Former President Obama invited Holmes to the White House and named her an Ambassador for Global Entrepreneurship in 2015.

The Washington Free Beacon reported in early June of 2016 that Holmes spoke about bringing equality to the health care sector at the Clinton Global Initiative’s annual meeting with Bill Clinton.

In 2016, Holmes spoke at a Hillary Clinton presidential campaign fundraiser with Chelsea Clinton.

Holmes was scheduled to host a fundraiser for the failed presidential candidate, but the event was relocated from Theranos' offices after Clinton received backlash. Holmes still remained a host for the $2,700 a seat fundraiser.