CA - Elizabeth Holmes (Theranos) Wire Fraud

[Niner]

Monday, Nov. 22nd:
*Trial continues (Day 32) (@ 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. Motions hearing on 11/2/21, 11/16/21 & 11/17/21. Trial dates: 11/22, 11/23, 11/24, 11/29, 11/30, 12/3, 12/7, 12/8, 12/9, 12/10, 12/13, 12/16, 12/17 so far.
Indictment & court info from 4/11/20 thru 8/26/21 & on 9/30/21 & on 11/2/21 & jury selection (Day 1-3) 8/31/21 to 9/2/21 & trial (Day 1-30) 9/8/21 to 11/18/21 & motions hearing on 11/8/21 & 11/19/21 reference post #842 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
11/19/21 Friday, Trial Day 31: Prosecutors are expected to rest their case-in-chief today. The parties are up arguing before Judge Ed Davila about Holmes' 1st witnesses.
for more info see post #844 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
The Judge tells the jury that we're not going meet the Dec. 6 "deadline", that he told the jury at the outset of the trial, which was about three months ago.
Government witness: Roger Parloff, Fortune Magazine writer. Cross by defense attorney John Cline & prosecutor John Bostic on redirect.
for more info see post #845 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
Prosecutors say one patient doesn't want to testify, so the government is dropping one fraud count related to that patient. And the Government has rested its case-in-chief.
The defense plans to move for an acquittal, but they'll make the arguments on the motion on another date.
Holmes' attorneys motion to suppress certain reports & witnesses.
for more info see post #846 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
More arguments before the Judge.
for more info see post #848 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
Defense's first witness: Trent Middleton, who is a paralegal at Williams & Connolly, which represents Holmes. On direct by defense attorney Amy Saharia.
for more info see post #848 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
Trent Middleton continued. Direct & prosecutor Robert Leach on cross.
for more info see posts #849 & 850 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
Ex-Amgen exec Fabrizio Bonanni, who joined Theranos' board in 2016. On direct by defense attorney Katherine Trefz. Cross by prosecutor Jeff Schenk. And redirect by Trefz.
for more info see posts #850 to 852 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
Elizabeth Holmes!! Direct by Kevin Downey.
for more info see posts #853 to 858 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
Trial is breaking for the week. Holmes' direct exam will continue Monday morning with her cross-examination to follow. Judge Ed Davila notes that he granted a request by the media to unseal portions of their jury questionnaires. He'll keep them sealed though through the trial. Trial continues on Monday, 11/22/21 @ 9am.
*Ramesh “Sunny” Balwani (53/now 56) (CFO & President of Theranos) – Pretrial conference hearing on 12/16/21 & trial set to begin on 1/11/22 with jury selection & trial starts on 1/18/22.

 

[Kittybunny]

Oooh Elizabeth on the stand! Did we know she was going to testify? I'm not at all surprised and would have been shocked if she didn't, but I don't remember reading it one way or another.

It does worry me a little bit, I think we have seen firsthand her ability to charm, manipulate, and lie with the utmost confidence and have a large portion of very smart people completely fall for it. We will just have to rely on the cross-examination skills of the prosecution.

 

[meanmaryjean]

My prediction based on the trial so far:

• She is convicted to the surprise of no one except EH and SB
• Sunny pleads lest they bring out the same parade of rock-solid witnesses against him
• They both do fairly trifling amounts of time at Club Fed
• None of the investors ever see a dime of their money again

 

[Lorenathered]

I have not see it mentioned yet so if it has I apologize. I haven't been able to watch the trial so following along here(thanks all for the updates!) But what voice is she using while testifying?

 

[Stripehaven]

I have not see it mentioned yet so if it has I apologize. I haven't been able to watch the trial so following along here(thanks all for the updates!) But what voice is she using while testifying?

It was briefly mentioned a page or so ago - she is using the deep voice. I find this so perplexing. It seems so fake and I wonder what jurors will make of it. ( I was dying to know, too!)

 

[Lorenathered]

I think she kinda had to. If she went for weak girl voice, she would then have to explain why she used the "other persona" when doing interviews and such. What I hope to see is prosecution shake her at some point where the fake voice drops by accident, or that they have video\audio of her prior to her fake voice nonsense. I think the jury should be aware she does this JMO.

 

[UndiscoveredTruth]

For those wondering:

Dorothy Atkins@doratki
3h

For those who are wondering, Elizabeth Holmes' voice is as deep as it sounds in the videos. She's wearing a navy blue? maybe black blazer and white collared shirt.

Scary!

I've just logged in so off to check out Dorothy's tweets. Sorry about the huge delay in posting the tweets but you can blame that on the time difference between Countries.

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
6h

Good morning from San Jose! It’s 4 a.m. and I’m outside the courthouse for day 2 of Elizabeth Holmes’ testimony in her criminal fraud trial along a 16 other folks who got here before me. I’ll be pounding coffee for the next 5 hours as we wait to get inside. Standby for tweets!

Dorothy Atkins@doratki
5h

John Carreyrou just arrived and the line has grown to 25 folks. Nearly everyone here is media. T-minus ~4.5 hours until trial starts and my coffee might as well be water at this point.

Dorothy Atkins@doratki
5h

One kind soul, who may not have actually slept last night, has taken on the duty of keeping a list of newcomers so that there won't be a mad dash to the courthouse doors once the gates open. "Are you media?" she asks No. 26, adding. "Welcome to the shitshow."

Dorothy Atkins@doratki
5h

It’s 43 degrees and the banter outside the courthouse gates has shifted from complaining about the early hour to complaining about the frigid temperatures. The line has grown to about 35-36 and I can’t feel my right hand.

Dorothy Atkins@doratki
3h

Courthouse security just opened the gates, and like cattle being herded, the crowd of 51 folks, including myself - mostly media - wait to pass through.

Dorothy Atkins@doratki
3h

The line is getting longer, and more observers have arrived. Some have been here before and came back to see Holmes on the stand. Others are first-timers, including a corporate law attorney and her younger sister, who read the Carreyrou book & listened to podcasts about Theranos.

Dorothy Atkins@doratki
2h

I made it into the courthouse and beelined it to the overflow courtroom, where there are power outlets and cushions. The line outside wraps around the side of the building. Safe to say some folks will be turned away this a.m. I regained feeling in my hand, but can't feel my feet.

Dorothy Atkins@doratki
2h

Others are starting to trickle into the overflow courtroom, so I'm guessing the main courtroom's 35 seats have been filled. By the looks of it from the fourth-floor courthouse window, there are still at least a couple dozen people waiting in line outside.

Dorothy Atkins@doratki
1h

Holmes is in the courthouse wearing a black blazer and a blue skirt (possibly dress). (Also a correction to my tweets Friday - she was wearing a white blouse* under her blazer, not a white-collared shirt

). She'd usually wait for trial to start in the courtroom, but not today.

Dorothy Atkins@doratki
1h

The overflow courtroom is at its capacity. There are many familiar faces, but I'd say over half the people here seem to be observers. No sign of the judge yet. It doesn't look like there'll be lengthy pre-trial arguments this morning before Holmes takes the stand.

Dorothy Atkins@doratki
1h

Prosecutor Jeff Schenk and Holmes' counsel Kevin Downey just disappeared with the clerk into the judge's chambers. Wonder what's up.

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
1h

Trial should have begun 30 minutes ago, but there's no sign of the judge, the jury or Elizabeth Holmes. A prosecutor and Holmes' attorney appear to be in chambers with the judge. This tweet is reporting the news that there is no news yet.

Dorothy Atkins@doratki
52m

A lot of us in the overflow courtroom are scratching our heads wondering what could cause this delay. A plea deal seems unlikely, but would be welcome news to those of us who have lost sleep covering this trial. Maybe another juror was caught playing Sudoku.

Dorothy Atkins@doratki
24m

Prosecutor Jeff Schenk and Holmes' attorney Kevin Downey have returned to the courtroom, as has the court reporter.

Dorothy Atkins@doratki
21m

Elizabeth Holmes is the courtroom. Now we're waiting for the judge and the jury.

Dorothy Atkins@doratki
14m

The jury is in the courtroom and Judge Edward Davila is back on the bench.

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
12m

The audio in the overflow courtroom wasn't working (of course). But after a brief panic and without the help of courthouse staff, an unnamed good Samaritan figured it out. Holmes is back on the stand.

Dorothy Atkins@doratki
9m

Holmes' attorney Kevin Downey asks Holmes to compare images of the "insides" of a Theranos device 3.0 and a device made by Tecan. Holmes says they realized if they miniaturized the Tecan devices they could do the same tests.

Dorothy Atkins@doratki
8m

Holmes says they realized they had problems with the devices when they gave the Novartis demo in Nov 2006 and it took until the end of 2007, or about a year, to finalize Theranos' 3.0 device.

Dorothy Atkins@doratki
3m

Holmes' attorney points to an email she received in 2011 from Tony Nugent that included an article. She summarizes the article that it says most testing errors happened in "preanalytical" process, and if they could automate that it would reduce the error rate.

Dorothy Atkins@doratki
2m

The article was titled "Preanalytical variability: the dark side of the moon in lab testing" and it says "lack of standardized procedures for sample collection, including patient preparation, specimen acquisition, handling and storage, account for up to 93% of the errors.."

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
50s

Holmes' counsel pulls up a mid-2008 email that ex-chief Theranos scientist Ian Gibbons sent Holmes, with a presentation on Theranos' tech. The conclusions included that "performance design goals have been demonstrated" and it's now in "clinical evaluation at several sites."

Dorothy Atkins@doratki
24m

The presentation also concludes that the "results have been excellent." Holmes says she thought that meant that Theranos was hitting its "design goals," and it tried to partner w/ the DOD's U.S. Army's Telemedicine & Advanced Technology Research Center -- or TATRC.

Dorothy Atkins@doratki
23m

Holmes said Theranos tried to partner with TATRC in 2008 and 2009, but wasn't successful. Theranos wanted to use the 3.0 device to predict PTSD based on blood markers, test diabetes and test trauma patients for potential infections.

Dorothy Atkins@doratki
21m

Holmes' counsel pulls up a July 2008 email that Gibbons sent to Holmes with a June '08 presentation. The presentation includes a slide on Theranos' Stanford AML study, which studied blood from cancer patients who were "very sick" and prone to infection, Holmes says.

Dorothy Atkins@doratki
20m

Holmes says the goal of the study was to determine if Theranos devices could predict sepsis. A conclusion in the slideshow says that "very clear patterns of disease progression, remission and effects of therapies are apparent."

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
19m

The slide sdays "assya results have been precise," 2/3rds of the way through. Holmes says, "It meant our system was working well." The study eventually was completed and published in a peer reviewed journal, she says.

Dorothy Atkins@doratki
14m

Holmes says the study concluded that with more frequent tests, they could predict sepsis in cancer patients, but more research needed to be done. Holmes mentions something about Gibbons, but adds she doesn't know what he would think. Prosecutor objects, but the judge overrules.

Dorothy Atkins@doratki
13m

Holmes says Theranos was working with pharma companies in 2008 and 2009, and her attorney pulls up a slide from a feb 2009 email, which includes "completed successes" of studies w/ GlaxoSmithKline, Pfizer, Celgene, Novartis, AstraZeneca and Merck.

Dorothy Atkins@doratki
12m

Holmes' counsel asks what "completed successes" means. Holmes replies that it means the study had achieved its goals. There's also a slide that says "ongoing studies," which includes a Celgene study and a Mayo clinic study.

Dorothy Atkins@doratki
7m

Holmes' counsel pulls up an email Holmes sent in July 2008 to a Novartis chemist Ivan Bottoli on a bone study. Holmes says "it looks like Theranos had completed the validation and I was sending it to Dr. Battoli for review." I remember it being really good," she says.

Dorothy Atkins@doratki
6m

For the pathologists out there, the Novartis study looked specifically at IL-6, TNF-a, hsCRP and CRP assays.

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
8m

Holmes' counsel turns to another study done for AstraZeneca that studied 3 assays - VEGF, VEGFR2 and PGF. The study incorporated Theranos' 3.0 devices with cancer patients in the U.K.

Dorothy Atkins@doratki
4m

In an April 2009 email, an AstraZeneca scientist asked Holmes if he could present Theranos' "reproducibility" data, which purportedly shows Theranos devices could reproduce certain data done by traditional devices, at a conference.

Dorothy Atkins@doratki
3m

Holmes' counsel turns to Theranos contract w/ Merck studying the sensitivity of Theranos' devices to do certain diabetes tests. She says the outcome of the study was that Merk said they would work with Theranos, but it never happened.

Dorothy Atkins@doratki
38m

Holmes says Theranos also started working w/ Bristol Myers around 2005 and did a study with the co in 2008. It also did a study with Centocor to develop PD and PK assays, and Holmes says Theranos devices were deployed for a Centocor study in Belgium.

Dorothy Atkins@doratki
36m

Holmes' counsel pulls up an email showing that Centicor scientist asked Holmes if the company could share the study's results in a presentation in 2011, and he says in a follow up email that the presentation "went very well."

Dorothy Atkins@doratki
34m

We were just getting going, but we're taking a 25 minute break. Brb...

 

[UndiscoveredTruth]

Dorothy Atkins@doratki

14m

While we wait, just curious, if you were facing criminal fraud charges, would you testify in your defense?

a) Sure, nothin to lose!

b) Def not, plead the 5th

c) I’d cut a deal.


*The above was a poll Dorothy created for followers to vote*

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
4m

And we're back! Holmes' counsel Kevin Downey points out that Theranos contracted with GlaxoSmithKline to study GLP-1 and C-peptide. "I remember them saying they thought our system eliminated the need for a lab," Holmes says.

Dorothy Atkins@doratki
1m

Holmes says Theranos did work with Schering-Plough, in 2009, which later became Merck. In a March 2010 email, Holmes' assistant wrote Holmes that she had a "great call with Connie Cullen” at Merck, who "said someone in her group reviewed the draft validation from a long time ago"

Dorothy Atkins@doratki
1m

The email say Cullen wanted the Merck scientists to talk "one-on-one" w/ Theranos scientists, and Cullen "said you should feel free to mention her name to the Merck folks..All in all, it was awesome, I think. Calling her every single morning for the last 3 wks finally paid off."

Dorothy Atkins@doratki
42s

Holmes says she thought the email meant that Theranos could use Cullen as a reference. Holmes counsel moves on and points out that Theranos also had contracts with Celgene and the Mayo Clinic.

Dorothy Atkins@doratki
2m

Holmes says Theranos also did a study with Pfizer in Nov 2008 in which they tested cancer patients in clinics and in their homes in remote areas. She says she continued to talk with Pfizer even after the study ended.

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
53s

In an Aug 2009 email from Craig Lipset, ex-Pfizer head of clinical innovation, wrote Holmes that Pfizer may be interested in doing a clinical trial study w/ Theranos for a new drug and the IL-6 assay. Holmes says the study never happened, b/c Pfizer didn't acquire the drug.

Dorothy Atkins@doratki
57s

Holmes' counsel pulls up another email from Pfizer exec on Oct 2013 in which the exec wrote Holmes "We are very much looking forward to further interactions.." and "I will follow up separately ..regarding a new 2-way CDA"...

Dorothy Atkins@doratki
1m

Nothing came from the 2-CDA deal, but Holmes counsel points to a Feb 2015 email in which Lipset wrote Holmes that opportunities arose at Pfizer to potentially work w/ Theranos. One was doing clinical trials in Walgreens and another was testing on lipids and cholesterol.

Dorothy Atkins@doratki
16s

The judge repeatedly instructs the jury that these emails should go to Holmes' "state of mind" and her understanding of perception of technology, but not necessarily for the truth of the matter.

Dorothy Atkins@doratki
25s

Holmes agrees that in early 2010, Theranos' engineers believed its systems could run any blood tests. Her attorney points to a Jan 2010 email from Ian Gibbons who wrote "I believe the technology has the potential for rapid expansion of our ability to do general chemistry assays."

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
30m

Holmes' atty shows slides from a presentation that Gibbons gave Holmes in Feb 2010 that said Theranos' 4.0 "will be capable of performing any measurement required in a distributed test setting. It is envisaged that several distinct measurement technologies will be incorporated."

Dorothy Atkins@doratki
28m

Elizabeth Holmes' counsel asks her what she understood from Ian Gibbons' Feb 2010 presentation: "I understood that the four series could do any blood test." With that, trial wrapped for the day. We'll be back here tomorrow morning (hopefully) for a full day of Holmes' testimony.

Dorothy Atkins@doratki
23m

The jury left, but the attorneys are still arguing over whether Holmes' counsel disclosed some exhibits too late. Prosecutor Robert Leach says Holmes' counsel handed them over "the day before" or "the night of," which is too late. Defense says the argument is "not well taken."

Dorothy Atkins@doratki
22m

Holmes' counsel says he handed over the docs as soon as they could, and the gov't waited until the night before to disclose its exhibits too and it's "the nature of trial."

Dorothy Atkins@doratki
20m

Before breaking for the day, Judge Davila notes that the jury has again complained that the "keyboard noise has increased" in the courtroom, so he's asking anyone who types loud to go to the overflow courtroom or monitor themselves. And I'm out.

 

[LinasK]

I don't understand the point of presenting all her potential deals, like with Pfizer for example, or the successful studies and tests. Could've, would've, should've doesn't negate any of the fraud and device failures.

 

[Niner]

Tuesday, Nov. 23rd:
*Trial continues (Day 33) (@ 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. Motions hearing on 11/2/21, 11/16/21 & 11/17/21. Trial dates: 11/23, 11/24, 11/29, 11/30, 12/3, 12/7, 12/8, 12/9, 12/10, 12/13, 12/16, 12/17 so far.
Indictment & court info from 4/11/20 thru 8/26/21 & on 9/30/21 & on 11/2/21 & jury selection (Day 1-3) 8/31/21 to 9/2/21 & trial (Day 1-31) 9/8/21 to 11/19/21 & motions hearing on 11/8/21 & 11/19/21 reference post #861 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
11/22/21 Monday, Trial Day 32: Prosecutor Jeff Schenk & Holmes' counsel Kevin Downey just disappeared with the clerk into the judge's chambers.
for more info see posts #868 & 869 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
Defense witness: Elizabeth Holmes back on stand for direct by Kevin Downey.
for more info see posts #870 to 877 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
The jury left, but the attorneys are still arguing over whether Holmes' counsel disclosed some exhibits too late. Prosecutor Robert Leach says Holmes' counsel handed them over "the day before" or "the night of," which is too late. Defense says the argument is "not well taken." Holmes' counsel says he handed over the docs as soon as they could & the government waited until the night before to disclose its exhibits too & it's "the nature of trial." Before breaking for the day, Judge Davila notes that the jury has again complained that the "keyboard noise has increased" in the courtroom, so he's asking anyone who types loud to go to the overflow courtroom or monitor themselves. Trial continues on 11/23/21 @ 9am.
*Ramesh “Sunny” Balwani (53/now 56) (CFO & President of Theranos) – Pretrial conference hearing on 12/16/21 & trial set to begin on 1/11/22 with jury selection & trial starts on 1/18/22.

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
15h

Elizabeth Holmes took the stand for a second (albeit short) day of testimony, which largely focused on Theranos' big pharma deals and emails to Holmes from the late former Theranos chief scientist Ian Gibbons, who died in 2013. My recap!

Holmes Testifies She Thought Theranos Could Do 'Any Test' - Law360