In our recent webinar, compliance and ethics leaders gathered to hear two powerhouse speakers share hard-earned lessons from the frontlines of corporate misconduct. Hosted by LRN and MEACA, the session was a riveting exploration of how organizations can foster a culture of integrity—or fail spectacularly without it.
Meet the speakers
Richard Bistrong - Once a high-flying international sales executive, Richard Bistrong's career took a dramatic turn when he cooperated with the U.S. Department of Justice in a major foreign bribery investigation. After serving 14.5 months in federal prison for FCPA violations, Richard transformed his experiences into powerful lessons on compliance, ethics, and human behavior. Now an acclaimed speaker and consultant, Richard’s work has been featured in the Wall Street Journal, Financial Times, New York Times, and Harvard Business Review.
Tyler Shultz - At just 22, Tyler Shultz blew the whistle on Theranos, the billion-dollar blood-testing start-up founded by Elizabeth Holmes. Shultz’s courageous decision to expose fraud at Theranos sparked regulatory investigations and led to the criminal convictions of Holmes and COO, Sunny Balwani. Today, Shultz is a passionate advocate for ethical leadership and psychological safety, drawing on his extraordinary story to inspire change in organizations.
Moderated by Amy Hanan, Chief Marketing Officer at LRN, the discussion delved into what went wrong at Theranos, how these issues were addressed, and what others can learn from these experiences.
Inside Theranos: How silence, secrecy, and charisma built a house of cards
Tyler Shultz didn’t set out to become a whistleblower. Like many young professionals, he was drawn to a company that promised to change the world.
He first met Elizabeth Holmes not in a boardroom, but in his grandfather’s living room. She was magnetic—dressed in black, speaking with hypnotic conviction about a future where a single drop of blood could revolutionize healthcare. To Tyler, fresh out of Stanford, it felt like stepping into “the Apple of medicine”.
But the illusion began to crack almost immediately.
On his very first day at Theranos, Tyler heard whispers of internal chaos—a top scientist fired after warning the product wasn’t ready, and a culture so secretive that even employees in the lab had never seen the technology they were building. It wasn’t long before he realized the truth: the product didn’t work, the data didn’t add up, and the public claims were dangerously misleading.
Still, no one spoke up. Why? Because fear ruled the halls of Theranos. Employees were isolated by locked doors and silos, muzzled by aggressive NDAs, and threatened—sometimes sued—if they raised concerns. The message was clear: silence wasn’t just expected, it was enforced.
This kind of culture doesn’t happen overnight. As both Tyler and fellow speaker Richard Bistrong emphasized, it starts with small compromises—choosing short-term wins over long-term integrity. Over time, those shortcuts become the norm. Ethics aren’t broken with a crash; they’re eroded with a whisper.
Despite pressure from those closest to him—including his own family urging him to walk away—Tyler Shultz stood firm in the face of intimidation, legal threats, and isolation; and through his unwavering courage, the illusion of Theranos finally came crashing down.
Major takeaways for compliance professionals
- Culture is everything
A company’s tone at the top sets the cultural norm. Leaders must consistently reinforce that how results are achieved is just as important as what is achieved. - Psychological safety is critical
Organizations must actively build environments where employees feel safe speaking up. As Shultz and Bistrong stressed, without it, dangerous silence takes over. - Beware the "Shade of Theranos"
Not all misconduct makes headlines. Look for "open secrets" and small ethical compromises that could spiral out of control. - Whistleblower systems must be authentic
It’s not enough to have a reporting hotline. Companies must prove that speaking up leads to real action and protection, not retaliation. - Flex your ethics muscles
Ethical behavior is like a muscle—it needs regular exercise. Everyday decisions matter and build the foundation for larger, tougher choices.
Final thoughts
Richard used a powerful analogy:
“Ethical challenges age like milk, not wine. The longer you ignore them, the worse they get—and the harder they are to clean up.”
Tyler’s story, along with Richard’s, offers a cautionary tale—and a roadmap for how businesses can build cultures where truth, transparency, and integrity aren't just ideals, but operational realities.
Want to hear the full story from Tyler himself—along with insights from ethics expert Richard Bistrong? Don’t miss the replay of this powerful, eye-opening conversation. Watch the full webinar here.
