CA - Elizabeth Holmes (Theranos) Wire Fraud Thread *Guilty* #2

[Niner]

I'm not counting this day as a trial day.


Friday, December 10th:
*Trial continues with jury instructions (no jurors) (@ 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 & 12/7/21.
Trial dates: 12/9, 12/10-jury instructions, 12/13, 12/16-closing arguments, 12/17-closing arguments, 12/20-Jury starts deliberations, so far & no court from 12/21/21 thru 1/5/22.
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 1-37) 9/8/21 to 12/7/21 & motions hearing on 11/8/21, 11/19/21 & 12/7/21 & charging conference on 12/3/21 reference post #24 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud Thread #2
12/8/21 Wednesday, Trial Day 37: Defense witness: Elizabeth Holmes continues redirect exam by defense attorney Kevin Downey.
for more info see posts #25 to 29 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud Thread #2
Elizabeth Holmes continued on re-cross by Prosecutor Robert Leach.
for more info see posts 29 & 30 to here:
CA - Elizabeth Holmes (Theranos) Wire Fraud Thread #2
Holmes' defense rests their case. And government is calling no rebuttal witnesses.
for more info see post #31 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud Thread #2
Judge Ed Davila says he thinks it's going to take the rest of the week to nail down jury instructions and the court's not available early next week, so closing arguments will take 2-days. He proposes 12/16 & 12/17 for closings & deliberations to start 12/20/21. The judge is back on the bench. He says one juror is unavailable Dec 22 & another one has an appointment Dec 16. "It sounds like the jury is otherwise available," the judge says.
for more info see post #31 & 32 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud Thread #2
Trial is breaking. There will be another hearing 12/10/21 Friday morning outside the presence of the jury on jury instructions. Closing will start 12/16/21 (Day 38 of trial) & on 12/17/21.
*Ramesh “Sunny” Balwani (53/now 56) (CFO & President of Theranos) – Motion in Limine hearing on 1/6/21 & trial set to begin on 1/11/22, 1/12/22 & 1/14/22 with jury selection & trial starts on 1/18/22.

 

[Kittybunny]

@LinasK quoted some paragraphs from a New Yorker article called "Blood, Simpler", including these sentences:

Some observers are troubled by Theranos’s secrecy; its blood tests may well turn out to be groundbreaking, but the company has published little data in peer-reviewed journals describing how its devices work or attesting to the quality of the results. “It’s trying to apply the Steve Jobs way of keeping everything secret until the iPhone was released,” Lakshman Ramamurthy, a molecular biologist and a former associate director at the F.D.A., told me. “But a health test is more consequential than a consumer product. It needs to be clinically valid and provide useful information.”

This idea of EH's—to keep everything secret like Steve Jobs did—is another dimension of smoke and mirrors. She took the idea of it, and not the reality, and then cast a great big fog cloud over whatever was going on inside her labs.
The "reality" was that the iphone grew organically out of 2 decades of ideas and other products. It wasn't like Athena sprouting out of Zeus' head full-formed. There were thousands of details that were already in the arena, e.g. hyperlinks, buttons, the ipod, GUI, touch screens, miniaturizing, form factors, accessibility, portability, US cell-phone infrastructure, mistakes they made..... etc. etc. Apple was talking about all this stuff in 1984 (still now, products are arriving from that same vision). Sure, they have secrets, but no new product gets launched from nothing. And they have personnel with a long history thinking and interacting with technology à la Apple.
Theranos never had any of that. There never was organic evolution in the public eye, a history of products, no staff that was long-term brains trained to think and interact with equipment a certain way, no software history, no product history (except a little "nanotainer", which may have been essential, but it's a container; the nanotainer is not exactly a paradigm-shattering invention the Mac—or iphone, to use the example—was; it's more like the 3.5" floppy disk, which was a new look for a floppy disk in 1982, but not a new concept).

I want to throw in an extra mention about staff. Theranos seems to me to have had exceptionally high turnover. To be sure, it could be argued that was typical for tech. But IMO that's not a relevant argument if you're trying to make like Apple. In my experience, long term users of Apple equipment....their brains work a certain way; IMO this is crucial to Apple product development. Theranos never had that. EH wanted all the superficial stuff with none of the underpinnings that gave Apple new products.

So, anyway, I wanted to be sure that it's clear that the wish to emulate Steve Jobs was all about persona, the image, the $$$$; it wasn't the necessary conceptual and evolutionary underpinnings EH was emulating. What she was shrouding in fog wasn't there. For Apple, what was shrouded in fog was a new gizmo that had a rich, tried-and-true, history that was very public.

Just catching up here - super dead-on analysis of all of this. Holmes is all about the smoke and mirrors, the shortcuts, bolstered and made possible by her grandiosity and narcissistic belief that the real hard work and rules don't apply to her, because she is a super genius idealist far above the rest of us mere mortals who have to you know, actually have completed degrees in chemical engineering before declaring they invented technology to revolutionize the world.

 

[nyvictoria]

Just catching up here - super dead-on analysis of all of this. Holmes is all about the smoke and mirrors, the shortcuts, bolstered and made possible by her grandiosity and narcissistic belief that the real hard work and rules don't apply to her, because she is a super genius idealist far above the rest of us mere mortals who have to you know, actually have completed degrees in chemical engineering before declaring they invented technology to revolutionize the world.

Great post!

 

[Seattle1]

Yasmin Khorram
@YasminKhorram

Elizabeth Holmes’ father joins the family for the first time; charging conference today to finalize the jury instructions.



9:56 AM · Dec 10, 2021 from Robert F. Peckham Federal Building·Twitter for iPhone

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
16h

Evidence closed yesterday in Elizabeth Holmes' months-long criminal fraud trial. Here's my recap of the last snippets of testimony jurors heard before the parties rested. Closing statements begin a week from today, after which they'll decide Holmes' fate.

Theranos Closings Near As Elizabeth Holmes Rests Defense - Law360

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
5h

Good morning from a sunny San Jose! I'm here for day 2 of Elizabeth Holmes' charging conference. Like last time, there's no line to get inside. I was the 2nd person here today. The 1st person was a press guy who said he got here at 4 am thinking there'd be a crowd. He was wrong.

Dorothy Atkins@doratki
4h

A few more press folks have arrived for today's hearing. Elizabeth Holmes is in the courtroom along with her mom and partner. Looking at the docket, the gov't hasn't filed its motion asking the judge to strike Holmes' abuse testimony yet. I imagine we'll hear an update on that.

Dorothy Atkins@doratki
4h

Judge Ed Davila is on the bench. He says he's hoping to finalize the jury instructions today, but it'll probably take the morning to go through the parties' 55-page joint jury instructions and the language the parties disagree over. We're going through them from the top.

Dorothy Atkins@doratki
4h

Judge agrees to instruct the jury, per Holmes' request, they should "not be influenced by any person’s ...profession, celebrity... or position in life or in the community." But he won't give the jury an explanation of what constitutes "reasonable doubt," which Holmes requested.

Dorothy Atkins@doratki
4h

Judge Davila agrees to give Holmes' requested instructions stating she's "not on trial for any conduct that took place before the time periods of the alleged offenses," and an instruction explaining circumstantial & direct evidence.

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
4h

We've moved on to Jury Instruction No. 16 on conspiracy. The judge wants to instruct: “For a conspiracy to have existed, it is not necessary that the conspirators made a formal agreement .. Nor is it enough that they had a business or romantic relationship.” The DOJ objects.

Dorothy Atkins@doratki
4h

Prosecutor Kelly Volkar says they "strenuously object" to adding the line about romantic relationship, b/c "of course" Holmes and Balwani's relationship and their 500+ text messages were part of it and "it does go to and indicate there might have been a conspiracy."

Dorothy Atkins@doratki
3h

Holmes' counsel disagrees with the prosecutor and says leaving out the instruction could suggest Holmes and Balwani's romantic relationship alone would be enough to convict her. Volkar again disagrees, but the judge is sticking w/ his proposal.

Dorothy Atkins@doratki
3h

We've moved on to Jury Instruction No 17 on whether the judge needs to define "willfully" for the jury. Prosecutor "strongly disagrees" w/ defining it b/c she says the word is not in the statute for conspiracy. "The defendant is trying to heighten the mens rea for conspiracy."

Dorothy Atkins@doratki
3h

Holmes' counsel Amy Saharia disagrees and says the Supreme Court defined willfully in Bryan v. United States as "in the criminal context, a willful act is one undertaken with a bad purpose," and the model jury instructions use the word "willfully" multiple times.

 

[UndiscoveredTruth]

Apologies for the huge delay in posting the rest of the tweets. I got so busy and sidetracked I totally forgot I was supposed to be posting the tweets..so so sorry for those who've been waiting patiently. I'm getting onto it right away now--

Dorothy Atkins@doratki
9h

Judge Davila seems to agree w/ Holmes' counsel on defining "willfully," b/c it's mentioned and he doesn't want to just leave the word "hanging out there," w/o defining it. Prosecutor again disagrees and says they can argue over defining it if the jury asks what it means.

Dorothy Atkins@doratki
9h

Judge Davila says he's going to "think some more about it," before deciding on defining 'willfully.' We're moving on to Jury Instruction No. 20 on the elements for wire fraud.

Dorothy Atkins@doratki
9h

The parties are arguing over whether the jury should be instructed on whether Holmes owed the investors a fiduciary duty and had a duty to disclose info to them. But the judge held off on deciding the wire fraud language now. He says he want to think on it more.

Dorothy Atkins@doratki
8h

Prosecutors want jurors to be told they don't need to unanimously agree on all the alleged misstatements, and it "doesn't matter whether the scheme or plan was successful or that any money or property was obtained." The judge says he doesn't think he'll include the instruction.

Dorothy Atkins@doratki
8h

We've moved on to whether the judge should instruct the jury on "good faith." Prosecutor Kelly Volkar says they shouldn't include the instruction, but Holmes' counsel disagrees.

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
8h

Judge Davila suggests the instruction: "You may determine whether Ms. Holmes had an honest good faith belief in the truth of the specific misrepresentations alleged in the indictment in determining whether or not Ms. Holmes acted with intent to defraud."

Dorothy Atkins@doratki
8h

The judge suggests the parties "word smith" his proposed good faith instruction and we're going to take a 45-minute break. Brb...

Dorothy Atkins@doratki
7h

And we're back! Prosecutor Kelly Volkar is up, and she's says she wants to "circle back" to the willfully instruction that Holmes wants to give. She argues there's no precedent for it in a wire fraud case, but Holmes' counsel says Volkar's arguments conflate different things.

Dorothy Atkins@doratki
7h

After the parties discussed the good-faith instruction, the judge says he's going to adopt his proposed instruction with some minor tweaks.

Dorothy Atkins@doratki
6h

Moving on to Jury Instruction No 24 on aiding and abetting - Holmes' counsel objects to including the instruction, but also says the gov't's proposed instruction doesn't clarify that the count requires the gov't to show Holmes intended to defraud.

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
6h

They're jumping around on these instructions, but prosecutor Robert Leach says after some reflection, the gov't agrees to remove their omissions theory from the wire fraud instruction, but wants it kept in the intent instruction. (And I am now thoroughly confused)

Dorothy Atkins@doratki
6h

The parties are arguing over an instruction that clarifies that civil violations - w/o more - are not evidence of criminal liability. Prosecutor Robert Leach keeps citing the US v Hussain case as support for his proposed instructions (he prosecuted that case so he knows it well).

Dorothy Atkins@doratki
6h

It sounds like the 55-pages of jury instructions aren’t getting any shorter. (I feel for these jurors.)

Dorothy Atkins@doratki
6h

Somehow the arguments strayed away from the jury instructions and into a debate over Dr. Das’ testimony and the CMS inspection report (which the parties have been fighting over basically since day 1) because of course it did.

Dorothy Atkins@doratki
6h

The judge is trying to wrap it up. “This should have been raised at some point in time before jury instructions” and “I am troubled” by giving an instruction specific to evidence (ie. the CMS report) but he says he’ll review the transcript.

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
6h

Defense wants a trade secret jury instruction, but prosecutor Robert leach says it’s a “red herring” and there’s no point in instructing on IP when all that matters is what was “in her mind.”

Dorothy Atkins@doratki
6h

The judge seems to agree with the govt on trade secrets, saying it’s ancillary and “beyond the scope.”

Dorothy Atkins@doratki
5h

The charging hearing is winding down. Judge Davila asks the attorneys about the length of closings. Defense counsel says they think their closings will be split b/w end of day Thursday and Friday morning.

Dorothy Atkins@doratki
5h

Defense counsel doesn’t want to ask the jury to deliberate the week of Dec 27, bc it could impact the verdict. Prosecutors say let’s wait to hear what their preference is. Sounds like they’ll be deliberating on Christmas Eve unless they reach a quick verdict. (Ugh) I’m out.

 

[LinasK]

Elizabeth Holmes closing arguments this week: What to expect
Alexis Keenan
·Reporter
Wed, December 15, 2021, 6:43 AM
Elizabeth Holmes closing arguments this week: What to expect

As reinforcement, each side will likely revisit key evidence introduced during witness testimony. However, one significant part of Holmes' defense could get blocked from closings and deliberations: The government said it would request that the judge strike Holmes' testimony claiming sexual assault at Stanford University and alleging Balwani controlled and abused her, according to a report from The Wall Street Journal.

“The lawyers can only rely on the evidence that's been admitted,” Kobre said, “and if the judge excludes the evidence, the lawyers won't be able to say it.”
Weinstein explains that even if the judge excludes or limits jurors from considering Holmes' abuse or sexual assault claims, the testimony remains in the jurors' minds — making it uncertain whether it will carry influence.

“In reality, they heard it already. The bell has been rung,” Weinstein says.

 

[Niner]

Updates for Balwani - looks like his hearing on 1/6/22 & trial date starting 1/18/22 have been deleted.

Friday, Jan 14 2022
09:00AM
5:18-cr-00258-EJD-2 - USA v. Ramesh Sunny Balwani
Motions in Limine Hearing
Pretrial Conference

Tuesday, Jan 25 2022
10:00AM
5:18-cr-00258-EJD-2 - USA v. Ramesh Sunny Balwani
AUSA:Jeffrey Schenk/DEF:Jeffrey Coopersmith
Status Conference (Review Jury Questionnaires)

link: CALENDAR


And Holmes is only on 12/16 & 12/17. Nothing from Tuesday, Dec. 21, 2021 thru Friday, Jan. 7, 2022.

 

[Niner]

Thursday, December 16th:
*Trial continues (Day 38)-Closing Arguments (@ 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 & completed on 9/1/21. 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.
Trial dates: 12/16-closing arguments, 12/17-closing arguments, 12/20-Jury was to start deliberations & no court from 12/21/21 thru 1/7/22.
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 1-37) 9/8/21 to 12/8/21 & motions hearing on 11/8/21, 11/19/21 & 12/7/21 & charging conference on 12/3/21 & 12/10/21 reference post #41 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud Thread #2
12/10/21 Friday – Attorneys & Judge went over jury instructions.
For more info see posts #46 to 51 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud Thread #2
Judge Davila asks the attorneys about the length of closings. Defense counsel says they think their closings will be split between end of day Thursday & Friday morning.
Defense counsel doesn’t want to ask the jury to deliberate the week of Dec 27, because it could impact the verdict. Prosecutors say let’s wait to hear what their preference is. Sounds like they’ll be deliberating on Christmas Eve unless they reach a quick verdict. Closing arguments begin on 12/16/21 for Day 38.
*Ramesh “Sunny” Balwani (53/now 56) (CFO & President of Theranos) – Motion in Limine hearing on 1/14/21 & status conference hearing on 1/25/22. Trial was set to begin on 1/11/22 with jury selection & trial on 1/18/22 have been cancelled.

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
12h

Last week, Judge Davila narrowed instructions he'll give jurors before they decide Elizabeth Holmes' fraud charges. They address both her celebrity & relationship w/ Balwani, but a final version hasn't been filed. I expect it to hit the docket today.

Holmes Jury Instructions Fight Touches On Celebrity, Balwani - Law360

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
5h

Good morning from a rainy San Jose! It’s almost 7 am and the line to get into the courthouse for closings in Elizabeth Holmes criminal fraud trial is so long that folks are lined up outside courthouse gates. I suspect court staff will turn away some people today.

Dorothy Atkins@doratki
5h

Word is there were about 10 people outside the courthouse before 5 am who were paid via TaskRabbit $50 per hour each to sit and wait in line in the rain to reserve seats for others in the main courtroom. It’s unclear who paid them. Woo, capitalism!

Dorothy Atkins@doratki
4h

I spoke to the first two people in line to get into the courthouse today. They arrived at 1:20 am this morning and vaguely said they were “observers, spectators.” Didn’t mention if they were paid to save seats.

Dorothy Atkins@doratki
4h

There are so many reporters here, I figure it’s only a matter of time until everyone figures out who paid people to wait in line.

Dorothy Atkins@doratki
4h

I’m inside the courthouse thanks to my federal courthouse media pass and see that at least two of the first folks inside, who I think must have paid folks to wait in line via TaskRabbit, are attorneys. Shocking!

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
4h

The group of 4 who I think paid folks to wait in line took spots in the first row of the overflow courtroom where one of the room’s 2 power strips are. I pointed out that reporters will be vying for that power strip. “That’s too bad! We’re prosecutors!” one of them replied.

Dorothy Atkins@doratki
4h

Only two of them appear to be attorneys, and they're def not trial attorneys working on this case. I'm sure they'll make TONS of friends in the courtroom once the other media folks file in.

Dorothy Atkins@doratki
4h

Currently listening to a woman discuss whether Elizabeth Holmes has worn "tights" (I think she means stockings) during trial and if Holmes' blue dress is a legal strategy b/c "people like blue."

Dorothy Atkins@doratki
3h

Judge Ed Davila is on the bench. He wants to clear up some jury instruction issues. One is that he plans to instruct the jury that portions of the CMS' 2016 report is admitted for the limited purpose of speaking to Holmes' state of mind but not for its truth.

Dorothy Atkins@doratki
3h

The jury is in the courtroom, as is Elizabeth Holmes and a lot of other people. (Hope everyone is vaccinated!) The gov't's closings will take most of today. The defense's closings are expected to be split b/w today and tmr.

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
3h

Prosecutor Jeff Schenk is up for the gov't. He begins the gov't's closings arguing that in 2010 Elizabeth Holmes had a choice to be honest, or to defraud patients and investors, and she chose the latter. "That choice was not only callous, it was criminal," he says.

Dorothy Atkins@doratki
3h

Schenk says Holmes lied to investors about Theranos' contracts w/ the military and made the decision not to use an "honest pitch" in 2013-2014 and instead lied to secure millions in investor dollars and Theranos' multimillion-dollar deal with Walgreens.

Dorothy Atkins@doratki
3h

Schenk is flipping through witness testimony. He seems to be going in the order that the 29(?) witnesses testified during the gov't's case-in-chief, starting w/ Theranos' controller Danise Yam. He's going surprisingly quickly.

Dorothy Atkins@doratki
3h

Schenk highlights that Theranos team manager Surekha Gangakhedkar testified she felt uncomfortable w/ the pace of Theranos' commercial rollout of patient tests before she quit, and a patient testified she got a Theranos test wrongly suggesting that she had a miscarriage...

Dorothy Atkins@doratki
3h

Schenk also highlights that Theranos board member Jim Mattis said he learned about Theranos' tech troubles from the press, and Holmes texted Sunny Balwani she was "praying literally non stop" during CMS' lab inspection in Sept 2015.

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
3h

Schenk moved quickly through ex-Theranos lab director Adam Rosendorff's testimony (even tho Rosendorff was on the stand for 6 days). He moves on to ex-Safeway CEO Steve Burd's testimony that Holmes allegedly told him Theranos deploying devices in military medivac units.

Dorothy Atkins@doratki
3h

Schenk points out that Balwani's dermatologist Sunil Dhawan took over part time as Theranos lab director after Rosendorff quit, and testified he worked only 5-10 hours b/w Nov 2014 and July 2015.

Dorothy Atkins@doratki
3h

Schenk says Theranos project manager Dan Edlin testified that Theranos didn't deploy its devices in military medevac. Schenk notes that there's not really a dispute that Theranos didn't deploy devices in medevac, but the dispute is over whether Holmes told investors that it did.

Dorothy Atkins@doratki
2h

Schenk is playing back a clip of Holmes speaking during a Dec 20, 2013 call with investors. He notes that in the clip, Holmes said Theranos devices had the capabilities to run any tests done in traditional labs.

Dorothy Atkins@doratki
2h

Schenk points out ex-Pfizer & Schering-Plough scientists testified their cos never validated Theranos' blood-tests, and ex-Cravath partner Dan Mosley testified he prepared a report for investors relying on a validation doc w/ a Pfizer logo that he didn't know Theranos made.

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
2h

Schenk highlights that a patient and doctor testified on receiving multiple inaccurate prostate cancer results from Theranos, and the gov'ts final witness was Fortune writer Roger Parloff who recorded some of his interviews w/ Holmes.

Dorothy Atkins@doratki
2h

Schenk says there are 3 blood-testing devices at issue: the Theranos-made Edison, modified third-party devices and non-modified devices. He says Holmes' trade secret defense doesn't make sense for unmodified devices. (This is the 1st time I've heard about unmodified devices)

Dorothy Atkins@doratki
2h

Schenk is recapping the counts at issue for two different alleged schemes: One to defraud 6 investors between 2010 and 2015 and another to defraud Walgreens 3 patients from 2013 to 2016. There are 2 conspiracy counts and 9 wire fraud counts.

Dorothy Atkins@doratki
2h

Prosecutor shows a slide showing Balwani and Holmes' different roles in the alleged conspiracy. He says Holmes' job was to recruit investors through allegedly false statements and Balwani ran the lab and prepared skewed financial projections.

Dorothy Atkins@doratki
2h

Prosecutor points to various emails and Holmes testimony, arguing that Holmes was involved in biz development, giving and reviewing presentations to investors, DOD & pharma deals, responding to doctors complaints, reviewing financials and Theranos' website.