when contacted, josh tetrick, the c.e.o. responded to bloomberg with the following statement.e have no reason to believe this is true. here to give us more details. olivia, who has been reporting on the story. what is going on here? >> well, this is a remarkable situation here. earlier this month bloomberg reported that the company had been purchasing its own products and a week ago the s.e.c. opened an inquiry, not an investigation, i want to be clear on that, into the potential of fraud or misleading investors and this morning bloomberg reported that the department of justice had opened an investigation into potential fraud. emily: right. what is the d.o.j. looking at? >> into the same things. they have more power pause they may be able to bring a grand jury, which allows them to get more information and they can press criminal charges. emily: so this potentially escalates it to a criminal case, right? >> yeah. could be very serious. emily: one thing that surprised me is the d.o.j. took action so quickly. with theranos, it took months for it to be at least publicized after "

josh tetrick, the ceo who has been with us many times. what is his response?tremely charismatic. a very charming personality. when we approached him with this story, he said the reason for the purchases had 100% to do with quality assurance. veryt to be clear, he was open with us about that quality assurance program. he invited us into their offices. we sat down with his people. he showed us a database that went through every product that they had purchased for quality assurance. when we looked at that database, we triangulated it with the receipts we already had and the expense reports and cash advances and records and we found that none of the purchases that were done for the quality assurance program where the same inchases that had been done terms of creating the illusion of demand. qualityere was a control database but the program you found was not in the database. >> yes. cory: i am sure he is really happy with the story. doesn't he suggest that they are still doing something like this? they are certainly doing the quality assurance program. what is norm