Medical startups these days appear to be riddled with scandal. First it was Theranos that went down hill years ago amid accusations of fraud, and now, another big name in the startup community is going down in flames. The San Francisco Chronicle is out with the wild tale of a poop-testing company (no jokes here) that fell from grace amid even wilder reports of obscene fraud.
Enter: Zachary Schulz Apte and Jessica Sunshine Richman, co-founders of the now defunct Ubiome. Prosecutors reportedly allege that the duo (who married just as their company fell) scammed patients; investors, and others out of more than $60m. Prosecutors also allege that the duo created tests that weren’t quite what they were marketed as (sound familiar.?)
At one point in its brief history the company was reportedly valued at more than $600m.
Apparently the story of Ubiome is all too similar to that of the great fall of Elizabeth Holmes aka Madame Theranos. Holmes is standing trial herself for almost identical fraud though that trial is delayed due to her pregnancy.