CA - Elizabeth Holmes (Theranos) Wire Fraud

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UndiscoveredTruth said:
Dorothy Atkins@doratki
35m

The report says during Pfizer scientist Shane Weber's 1hr phone call w/ Elizabeth Holmes, "Theranos verbally provided oblique, deflective or evasive non-informative answers to [six] technical due diligence q's." The q's include how much would 100 devices cost for a clinical study

Dorothy Atkins@doratki
30m

Weber wrote an email in Jan 2009 that he spoke with Holmes and explained to her that "Pfizer did not have at this time a foreseeable use for Theranos immunoassay device for at patient self use at home, but she and I agreed to stay in touch every six months..."

Dorothy Atkins@doratki
29m

The email goes on "...I was polite, clear, crisp and patiently firm as she pushed back. She asked for other names at Pfizer to approach and I politely deflected." He explains Pfizer had made its determination and didn't want colleagues to be distracted from their clinical work.

Dorothy Atkins@doratki
27m

The Jan 2009 email also says Shane Weber confirmed with Elizabeth Holmes that Pfizer had paid Theranos "in full" and owed Theranos nothing. He says they planned to check in with Theranos every 6 months, but no other business ever came of Pfizer's interaction w/ Theranos.

Dorothy Atkins@doratki
25m

Prosecutor pulls up an email that Elizabeth Holmes sent to Walgreens execs a year later in April 2010 that includes a copy of Theranos' angiogenesis study, but it has a Pfizer logo on it. Weber says he never approved Theranos' use of Pfizer's logo and didn't endorse its tech.

Dorothy Atkins@doratki
23m

Holmes' email to the Walgreens exec says the report was done was Pfizer's independent "own technical validation" of Theranos' tech and the document was saved as "Pfizer Theranos System Validation Final Report." Weber says he and Pfizer never validated Theranos' technology.

Dorothy Atkins@doratki
21m

Prosecutor points out that the conclusions in the report labeled as a Pfizer and Theranos study and provided to Walgreens execs are identical to the conclusions in the report initially provided to Pfizer. Weber says no one at Pfizer reached those conclusions or OK'ed the report.

Dorothy Atkins@doratki
20m

Ex-Pfizer scientist Shane Weber's direct exam wraps with him saying as far as he knew after Jan 2009 there was "no interaction in a meaningful way" b/w Theranos and Pfizer. Trial is taking a 30 min break before Weber's cross.
Click to expand...
Wow! She robs Peter to pay Paul. Lying about military use and now Pfizer authorization. You can't fool all of the scientists all of the time. Someone was going to figure out this house of cards was a defective product.
 
Dorothy Atkins@doratki
1m

We're back! Prosecutor points out that Holmes said on the call she knew it would take a long time to develop the tests. Tolbert says he thought if he knew that it couldn't do what they set out to do 7 years into the company then there wouldn't be a reason to invest.

Dorothy Atkins@doratki
2m

In the second audio clip, Holmes says Theranos' devices can get "people tested frequently" without variability in results, and that Theranos uses "fresh" fingerstick blood & not "big series of tubes of blood sitting on a counter" that decay when they're sent to centralized labs.

Dorothy Atkins@doratki
12m

In a third audio clip, Holmes says Theranos shares went from 82 per share to $75 and "We are already creating significant value. We’re just getting started." but she adds they're still spending a lot of time on "scaling" infrastructure & trying to "reactivate" its pharma deals.

Dorothy Atkins@doratki
12m

Elizabeth Holmes used the words "synergy" and "synergistic" multiple times on this call with investors.

Dorothy Atkins@doratki
2m

Tolbert says based Holmes' 2013** (corrected 2016 mistake) investor phone call, it sounded like the proceeds of this fundraising round was not about perfecting this technology. Instead it was about scaling up and rolling out the tech, he says.

Dorothy Atkins@doratki
50s

In response to a q, Holmes says on the investor call that Theranos is valued at $7B and "It’s really now a question of how fast we will scale," "the fact that we will scale is a given," b/c retail partners have invested hundreds of mil in preparing the framework.

Dorothy Atkins@doratki
3m

An investor asked Holmes about IPO, Theranos' partnership w/ the military & if any IP competitors are out there. She gives a kind of meandering response about the IPO, but notes the "military is a big deal for us."

Dorothy Atkins@doratki
30s

Holmes goes on to explain why soldiers could benefit from quick real-time blood-tests in the field and eventually says that long-term the military is "significant for us" and adds it "may be symbolic."

Dorothy Atkins@doratki
18s

Holmes says in regards to IP, Theranos' counsel and board member David Boies has helped Theranos sue a "patent troll" and "we will not settle on any intellectual property violation."

Dorothy Atkins@doratki
1m

Holmes said Theranos blood-tests will cut Medicaid's reimbursement threshold and there'll be $150B out of pocket savings over 10 yrs. She goes on to talk about dif tests, including tests that assess iron levels for anemia (which ex-lab chief Dr. Adam Rosendorff said didn't work)

Dorothy Atkins@doratki
1m

Tolbert says Holmes' military comments resonated w/ him b/c he has a brother who is a Marine who did a tour in Afghanistan, and it wasn't just about an opportunity to make money, but it also was about an opportunity "to do good."

Dorothy Atkins@doratki
1m

Prosecutor points to a document that Tolbert signed stating the investment is "highly speculative and involved substantial risks," but he says he didn't think a risk included the potential of allegedly being lied to by Holmes.
 
Last edited:
Dorothy Atkins@doratki
37s

The feds wrapped Tolbert's direct. Holmes' attorney Kevin Downey is up on cross, and gets Tolbert to acknowledge that Gary Nordheimer initially spoke with Tolbert's boss about Theranos, and he wasn't on those calls, but he was assigned the 'due diligence' task.

Dorothy Atkins@doratki
1m

Tolbert acknowledges that he never tried to contact Theranos employees over those years aside from the initial meetings and the 2013 investor call and never asked for more financial projections.

Dorothy Atkins@doratki
7m

Tolbert also acknowledges that Chris Lucas didn't provide rollout info about Theranos, and Tolbert never asked for it, and he never followed up asking Holmes to provide Theranos' contracts with the military and phara cos.

Dorothy Atkins@doratki
4m

Tolbert says he thought the number of Theranos' blood tests went from hundreds of tests to "thousands of tests being done." Holmes' counsel asks if she ever said "thousand of tests." He says no, and admits "not on that call."

Dorothy Atkins@doratki
1m

Holmes' counsel plays another clip from the 2013 investor call in which Chris Lucas says Holmes "has controlling interest in the co. She has a firm grasp on the co both legally" and how she manages it, and she maintains control so that she could override irresponsible investors.

Dorothy Atkins@doratki
32m

Trial was supposed to break at 4 p.m. but they're going until 5 p.m. to wrap Tolbert's cross and redirect. Safe to say there will be no third witness today.

Dorothy Atkins@doratki
21m

Holmes' counsel is pressing Tolbert on various things he didn't ask Theranos about before he invested in the company, including looking into its patent portfolio or asking about the specifics of its military and pharma co deals.

Dorothy Atkins@doratki
17m

Holmes' atty wraps cross w/ Tolbert saying they thought they had all the info they needed to make the investment in Theranos. Prosecutor is back up for brief redirect, reading back Holmes' comment in the investor call that they paused "a large #" of contracts to focus on retail.

Dorothy Atkins@doratki
13m

The parties wrapped with investor John Bryant Tolbert. Trial is about to break for the week, but the judge asks the jury to find out if they're available for trial for the five Mondays in Nov. from 9 a.m. to noon/1 p.m. and Nov 18 instead of Nov 24 (which is before T-day).

Dorothy Atkins@doratki
6m

Holmes counsel Lance Wade notes that ECF/Pacer is "down this weekend" and if they need to file a motion, they could email the court.

Wade adds: "There may not be issues."

Judge quips: "I'm very confident there won't be."
I'm out
270c.png
.
 
 
“Uh, no”—Pfizer scientist denies Holmes’ claim that Pfizer endorsed Theranos tech

Tim De Chant - 10/25/2021, 10:18 AM
Theranos founder Elizabeth Holmes told Walgreens executives in an email that pharma giant Pfizer had completed its “own technical validation" of Theranos, jurors in Holmes' criminal trial heard Friday. As if to support that claim, Holmes attached a document titled “Pfizer Theranos System Validation Final Report,” which included a Pfizer logo.


But the document wasn’t the work of Pfizer’s scientists—it was from Theranos’ own staff.


Pfizer had investigated Theranos’ technology in 2008, but it ultimately concluded that the startup wasn’t worth investing in. “Theranos does not at this time have any diagnostic or clinical interest to Pfizer,” Shane Weber, former director of diagnostics at Pfizer, wrote in December 2008. He added that “no further financial investment or clinical sample resources [should] be extended to Theranos.” More at link: “Uh, no”—Pfizer scientist denies Holmes’ claim that Pfizer endorsed Theranos tech
 
 
Tuesday, October 26th:
*Trial continues (Day 20) with Motion in Limine Hearing (@ Hearing @ 8am & trial @ 9am PT) - CA – for *Elizabeth A. Holmes (34/now 37) (CEO of Theranos) charged (March, 2018) & indicted (6/14/18) & arraigned (6/15/18) with 9 counts of wire fraud & 2 counts of conspiracy to commit wire fraud and charged & indicted (4/11/20) with fraud relating to a patient's blood test. Another count of wire fraud was added in 2020, bringing the total number of felony charges to 12. Plead not guilty. No bond. Faces a maximum sentence of 20 years in prison & up to $2.75 million in fines, plus restitution, & $250K for each individual count of wire fraud & conspiracy.
Defrauding investors out of $700 million in funding for their blood-testing startup Theranos.
Trial began on 8/31/21 with jury selection. 12 jurors of 7 men & 5 women (6 Caucasians, 4 Hispanics & 2 Asians) with five alternates (3 men & 2 women). Juror #7 excused & replaced with alternate #1. Now jurors are 8 men & 4 women. Alternates 2 men & 2 women. 10/6/21: Juror #4 excused & replace with alternate #2. Now jurors are 8 men & 4 women. Alternates 2 men & 1 woman. 10/22/21: The judge excused Juror #5, moving up the third alternate to replace the juror. Both are women. No word on why the juror was excused. Now jurors are 8 men & 4 women. Alternates 2 men.
Trial began on 9/8/21.
The Court trial days will be Tuesday, Wednesday & Friday, possibly other half days. The Court may modify the trial time & set either 8:30am-2pm or 9am-2pm & possibly 30-minute breaks in between. Judge Edward J. Davila presiding. Jury selection was on 8/31 & 9/1 completed. Judge Davila said the juror whose mother-in-law died suddenly last week wants to travel for a few days next week for the memorial service, so trial won't be in session next Friday, Oct. 29. 10/20/21: Judge Davila notes that a juror can't be in court Friday, 11/12 & 12/3 & the judge has a conflict in November at some point due to a meeting in the Ninth Circuit committee. Trial dates: 10/26, 10/27, 10/29, 11/2, 11/3, 11/4, 11/5, 11/9, 11/10, 11/12, 11/16, 11/17, 11/18 (?), 11/19, 11/23, 11/24 maybe, 11/30, 12/3 so far.
Indictment & court info from 4/11/20 thru 8/26/21 & on 9/30/21 & jury selection (Day 1-3) 8/31/21 to 9/2/21 & trial (Day 1-18) 9/8/21 to 10/20/21 reference post #693 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
10/22/21 Friday, Trial Day 19: Holmes' attorney wants the Judge to bar prosecutors from mentioning a 2-page email from an investor that repeats allegations in a WSJ article that has already been excluded & it "doesn't add very much." Prosecutors want it in.
The judge excused Juror No. 5, moving up the third alternate to replace the juror. Both are women. Popular puzzle game Sudoku got a third juror in the Elizabeth Holmes trial dismissed today after she admitted to playing it during testimony to help keep focused.
Government witnesses: ex-Pfizer scientist Shane Weber. Prosecutor Robert Leach is up for the government on direct.
for more info see posts #696 to 698 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
Shane Weber continued with Holmes' counsel John Cline on cross & redirect by Leach.
for more info see post #699 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
Hall Group investor Brian Tolbert on direct.
for more info see posts #699 to 700 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
Brian Tolbert continued with audio clips from investor conference meeting in Dec. 2013.
for more info see post #703 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
Brian Tolbert continued with Holmes' attorney Kevin Downey on cross & on redirect.
for more info see posts #704 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
The judge asks the jury to find out if they're available for trial for the five Mondays in Nov. from 9am to noon/1pm & 11/18 instead of 11/24 (day before Thanksgiving).
Trial continues on Tuesday, 10/26/21 with Motion in Lime hearing @ 8am & trial starting at 9am.
*Ramesh “Sunny” Balwani (53/now 56) (CFO & President of Theranos) – Motion hearing on 9/30/21 which was cancelled & trial set to begin on 1/11/22 with jury selection & trial starts on 1/18/22. No update as of 10/26/21.
 
otto said:
Very uptight people. Like Holmes.

So Holmes falsely claimed that she was endorsed by Phizer when representing her fake blood test to investors? Financial fraud.

I hope she is not released. She is dangerous in terms of convincing others to do her criminal bidding.
Click to expand...

but it's an important criminal trial and this person chooses to do sudoku?! I'm flabbergasted
maybe they wanted to get booted
 
Dorothy Atkins@doratki
4h

Good morning from San Jose! It's week 7-ish of Elizabeth Holmes' criminal fraud trial and Judge Ed Davila is on the bench. The parties are arguing over letting the jury see Holmes' Today Show and Mad Money clips. Sounds like investor Lisa Peterson will be testifying today.

Dorothy Atkins@doratki
4h

Prosecutors say the interview clips are relevant b/c they show Holmes' state of mind. Defense counsel wants to play the entire interview segments instead of just clips for "completeness" and fairness.

Dorothy Atkins@doratki
4h

Holmes' counsel Lance Wade also notes that witness Lisa Peterson was a wealth manager at RDV Corp for the DeVos family and she didn't decide their investments, four members of the family decided them. But prosecutors disagree.

Dorothy Atkins@doratki
4h

Wade says the DeVos family chose to invest in Theranos in Silicon Valley and a memo memorializing the investment that Lisa Peterson signed for RDV Corp happened months after the investment.

Dorothy Atkins@doratki
4h

The judge won't limit Peterson's testimony, but he allows Wade to have a standing objection to Peterson's testimony on the DeVos family's Theranos investment.

Dorothy Atkins@doratki
4h

Judge Davila says he received an email from a juror complaining about the noise from keyboard typing. The judge again says he'll bring in a Marshall to kick out folks who don't use silent keyboards. He adds that if they continue to complain, he'll ban keyboards from the courtroom

Dorothy Atkins@doratki
3h

The jury is in the courtroom, but Judge Davila is not on the bench. It's been 30 minutes. Unclear what the hold up is.

Dorothy Atkins@doratki
3h

Judge Davila is on the bench. He says he wants trial to go until 4 p.m. today and he wants to add Mondays in Nov. A juror says it's getting "very tough" for him to manage his workload with added trial days. The judge says maybe they'll drop some days.

Dorothy Atkins@doratki
3h

The judge reminds everyone they need to use silent keyboards or else he'll make everyone w/ computers go to the overflow room. "I hate to send all of you down there," he says. (Lol sounds like he's sending students to detention. It's r not so bad here. The seats are cushioned!)

Dorothy Atkins@doratki
3h

Prosecutors call to the stand RVD Corp private equity group manager Lisa Peterson, who helps manage the DeVos family's estate. She's worked at RVD for 16 years.
 
Dorothy Atkins@doratki
3h

Peterson says she first heard about Theranos on a plane ride back from Chicago after RVD Corp CEO Jerry Tubergen met Elizabeth Holmes and her bro Christian.

Dorothy Atkins@doratki
3h

She says she volunteered to work w/ Tubergen "to prepare everything that would go to the investment committee," which is made up of DeVos family members.

Dorothy Atkins@doratki
3h

Prosecutor points to a Sept 2014 email that Jerry Tubergen sent to DeVos family members stating "This morning I had one of the most interesting meetings I can recall with the woman profiled in the Fortune Mag." He attached a copy of the Elizabeth Holmes cover story to the email.

Dorothy Atkins@doratki
3h

Peterson says she reviewed two Theranos binders, a cover letter and spoke to Elizabeth Holmes with Tubergen on the phone Oct 3, 2014. Peterson's notes from the call says "Walgreens (market 11m tests/month)" and "boots in Europe."

Dorothy Atkins@doratki
3h

Peterson's notes from the meeting says Theranos' risks are that the company has "long-term contracts, so risk is execution." Prosecutor points out that tech issues were apparently not mentioned as a risk.

Dorothy Atkins@doratki
3h

Peterson says she thought Holmes was "hand-picking" investors and "it was very much characterized" that she was inviting the DeVos family to participate in the opportunity to invest.

Dorothy Atkins@doratki
3h

The presentation Peterson gave to the DeVos family said "Theranos requires only a pin-prick and a drop of blood to perform hundreds of tests," and the primary risk is the "execution of its business plan, rather technology, validation and customer acceptance."

Dorothy Atkins@doratki
3h

Peterson's presentation also says Theranos' devices can be used in military evac helicopters, which she says Holmes told her. She then met with the DeVos family, Holmes and Sunny Balwani during a 5-hr meeting in which Holmes showed them a demo and Cheri DeVos had her blood tested

Dorothy Atkins@doratki
2h

Prosecutor walked through a Theranos presentation that RVD Corp received, which made multiple claims about Theranos' ability to do a variety of tests and that "Theranos provides the highest level of oversight." Trial is taking a 30 min break. BRB
 
Dorothy Atkins@doratki
2h

The jury's back! Lisa Peterson is on the stand and prosecutor Robert Leach is continuing Peterson's direct exam. He's going through the Theranos PowerPoint and walking through the company's various statements, like it can process "any sample type" that a central lab processes.

Dorothy Atkins@doratki
2h

Prosecutor points out that at the end of the PowerPoint, Theranos cited multiple news articles about the company that ran in various outlets, including BBC World News, Fortune, Forbes, USA Today, Fox biz and The Arizona Republic.

Dorothy Atkins@doratki
2h

Peterson says Theranos sent her its "angiogenesis" study with Pfizer's name and logo. She says she thought Pfizer produced the report and concluded that Theranos' analyzers were accurate.

Dorothy Atkins@doratki
2h

Peterson said she received Theranos' financial projections, which showed lab services to go from $42M in Dec 2014 to $470M a year later. The doc also says Theranos' pharma co revs by end of 2014 would be $40M and hospital rev $47M, but "TBD" for the DOD.

Dorothy Atkins@doratki
2h

Theranos' financial projections indiciated that its total revenue would be $140M for 2014, and total revenue expected a year later was $990M, which she thought was "impressive."

Dorothy Atkins@doratki
2h

The Oct 2014 document also projected Theranos' net income would grow from $3 million at the end of 2014 to $230 million in 2015. (During trial openings, prosecutors said Theranos only made $150,000 in revs in 2014.)

Dorothy Atkins@doratki
1h

Prosecutor points out that the DeVos family invested roughly $100 million into Theranos. He's now playing clips from Holmes' @jimcramer Mad Money interview in Oct 2015 that occurred after the WSJ articles cast doubt on Theranos' tech.

https://t.co/GshOUqyyZT?amp=1
(Click above link to view video)

Dorothy Atkins@doratki
1h

Prosecutor also is now showing the jury a clip from Holmes' Today Show interview in April 2016.

59eIR7wr


Theranos CEO Elizabeth Holmes: I’m ‘devastated’ about blood test issues

Dorothy Atkins@doratki
1h

The judge interrupted the clip and told counsel he wants to talk to them in chambers. (My guess is he may be concerned that the intro to the Today Show clip is prejudicial.) We're taking a short break
 
Dorothy Atkins@doratki
1h

And we're back. Prosecutors are playing the clip starting from the top.

Dorothy Atkins@doratki
1h

Peterson said after the news reports, she and ex-Cravath partner and investor Dan Mosley met with Holmes and other Theranos employees and she says they "very much downplayed what had been happening in the press." The gov't wrapped direct. Lance Wade is up for Holmes on cross.

Dorothy Atkins@doratki
1h

Wade begins asking Lisa Peterson what she recalls of the Theranos angiogenesis study w/ the Pfizer logo. She says she doesn't recall the blood test, where the study was done or what kind of study it was. But she says the "take away" was that she thought Pfizer validated the test.

Dorothy Atkins@doratki
1h

Wade presses Peterson on the DeVos family patriarchal structure, and the various generations and how the DeVos family members rotate in RDV Corp's investment committee.

Dorothy Atkins@doratki
1h

Wade points out that Dan Mosley was a partner at @Cravath, which he notes is "one of the most highly reputable law firms in the world." But she won't concede the point.

Peterson: I don’t know

Wade: It is a highly reputable law firm.

Peterson: I don’t know.

Dorothy Atkins@doratki
1h

Peterson acknowledges that she wasn't briefed by RVD Corp CEO Jerry Tubergen about his various Theranos related discussions with Dan Mosley and she wasn't privy to all of their communications.

Dorothy Atkins@doratki
1h

Peterson acknowledges that she doesn't know if DeVos' family members read the Theranos memo she prepared, but she says she discussed it with them on a plane. Holmes' counsel asks if she took notes during their discussion. She says no.

Dorothy Atkins@doratki
1h

Holmes' counsel points to a Theranos analysis that ex-Cravath attorney Dan Mosley sent to Henry Kissenger in Sept 2014. Peterson acknowledges that she doesn't know if Mosley sent the analysis to her boss, Jeff Tubergen, around the same time.

Dorothy Atkins@doratki
1h

Peterson admits that 2 years later when they were trying to figure out Mosley's role in the investments, she communicated w/ her boss about the analysis through her Gmail instead of work email. "Frankly we didn’t want to get in trouble."

Atty: You hid the doc?

"Somewhat, yes."

Dorothy Atkins@doratki
1h

Wade gets Peterson to acknowledge that she didn’t attend the DeVos fam investment committee meeting, and she doesn't know if the committee read her Theranos memo. But she says she prepared the memo before they decided to invest in Theranos. "We'll get to that," Wade says.

Dorothy Atkins@doratki
1h

Trial is taking an afternoon break. We'll be back in 30-ish.
 
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