Elizabeth Holmes was the face of Silicon Valley’s massive Theranos scam. But behind the scenes was her top deputy and co-conspirator Ramesh Balwani. Key to the fraud was his systematic replacement of white engineers who questioned company claims with pliant Indians on H-1B visas.
John Carreyrou, the WSJ reporter who unveiled the scam, wrote about this in his book Bad Blood:
“The biggest problem of all was the dysfunctional corporate culture in which it was being developed. Elizabeth and Sunny [Ramesh Balwani] regarded anyone who raised a concern or an objection as a cynic and a naysayer. Employees who persisted in doing so were usually marginalized or fired, while sycophants were promoted. Sunny had elevated a group of ingratiating Indians to key positions.
For the dozens of Indians Theranos employed, the fear of being fired was more than just the dread of losing a paycheck. Most were on H-1B visas and dependent on their continued employment at the company to remain in the country. With a despotic boss like Sunny holding their fates in his hands, it was akin to indentured servitude.”
