CA - Elizabeth Holmes (Theranos) Wire Fraud

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Sorry for such a big delay inbetween tweets everyone. My power was shut off and I'm using my pc to post the tweets. Power is now back on, phew!! More tweets from Dorothy Atkins:

Dorothy Atkins@doratki·
4h

James Mattis says "up until this time I had assumed when we talked about Theranos... we were talking about Theranos analyzers standing alone. That had been my introduction to technology. That was the reason we could say 'we are faster, we are more accurate.'"

Dorothy Atkins@doratki·
4h

Mattis says using other non-Theranos devices made Theranos raised a "reputational problem and an integrity problem." "I thought all along that we were doing it on Theranos’ gear, and I was a member of the board," he said.

Dorothy Atkins@doratki·
4h

Holmes responded to the board's q's by pointing out Theranos was 'transitioning' from CLIA reg framework to FDA framework. Mattis says her response was confusing, but "we had at a minimum a problem w/ what we were saying, and [I thought] it’s time to go help the CEO."

Dorothy Atkins@doratki·
4h

James Mattis says at first he thought the problem was the WSJ reporter had gotten confused/bad info, but by early 2016 he was "concerned." "I take it on good faith what we heard, but there had been some surprises - some disappointing surprises," he says.

Dorothy Atkins@doratki·
4h

Mattis agrees that at some point he lost hope in Theranos' technology. "There just became a point that I didn’t know what to believe about Theranos anymore," he says.

Dorothy Atkins@doratki·
4h

James Mattis says looking back now he's disappointed in Theranos and the company had transparency issues. He also wonders if he could have been more available to help, "I couldn’t see why we had been surprised on such fundamental issues."

Dorothy Atkins@doratki·
4h

Feds wrapped direct, and we're taking a 10 minute break before cross. brb

Dorothy Atkins@doratki·
4h

During the break, James Mattis is chatting it up with the the court reporter maskless. She just directed him to her office - prob so that he's not mobbed by the press pool in the courtroom hallway.

Dorothy Atkins@doratki·
3h

For those who missed the start of this, here's my recap of James Mattis' direct examination on the stand. I'll update it at the end of the day w/ more:

Ex-Defense Sec. Jim Mattis Takes Stand In Holmes Fraud Trial - Law360

Dorothy Atkins@doratki·
3h

The jury is filing back in, and Mattis is standing at attention -- probably the only time you'll get a four-star general standing for a bunch of civilians.

Dorothy Atkins@doratki·
3h

Judge Ed Davila asks the people in the gallery to "type softly please" because the sound of the keys are making it hard to hear up front. lol

Dorothy Atkins@doratki·
3h

Kevin Downey of Williams & Connolly LLP is up for the Holmes on cross. It's the first time the attorney has examined a witness during this trial.

Dorothy Atkins@doratki·
3h

Downey asks Mattis if he participated in lab discussions or listened mostly during Theranos board meetings. Mattis replies he "did a lot of listening, not much talking."

Dorothy Atkins@doratki·
3h

Downey points to email July 2013 email in which James Mattis wrote that "Theranos is focused on the U.S. medical lab market here in the states (U.S. military may eventually be a customer but likely not immediately or in a big way.)"

Dorothy Atkins@doratki·
3h

Downey asks James Mattis about stock options in Theranos, and points to 500,000 shares that he was granted for $85,000 while at Theranos in Jan 2014. He says he signed the doc, but he doesn't recall receiving any paperwork at the time.

Dorothy Atkins@doratki·
3h

James Mattis says he received $50k annual salary to serve on the Theranos board, but he notes that he told Holmes the company didn't have to pay him. Downey shows him a doc that says he received a $150k annual salary.

Dorothy Atkins@doratki·
3h

James Mattis says he learned his board obligations from David Boies and other board members, and he learned Theranos would offer blood tests to the public at Walgreens. "I assumed the central Theranos lab would be the Theranos machine," he says.

Dorothy Atkins@doratki·
3h

Downey asks James Mattis if he's aware of the IP litigation Theranos was involved in and the importance of protecting trade secrets. Mattis replies that he was aware, and IP protection is an area that was highlighted in the "boardroom books" he read.

Dorothy Atkins@doratki·
3h

James Mattis says the late Secretary of State George Shultz called Mattis and said he was concerned Holmes' public profile was going to "create danger for her." Mattis connected her w/ his former body guard to give her personal security.
 
Dorothy Atkins@doratki·
3h

Downey points to a February 2015 email b/w Holmes and Mattis about compensation for Theranos' COO and CEO. Holmes told Mattis that she and Balwani wanted to get paid in stock options instead of a salary.

Dorothy Atkins@doratki·
3h

Downey asks if he knew Theranos' goal was to perform 2k tests on its devices. Mattis agrees that he knew of the goal and that the device was still "coming on line," but "I assumed it would be more than a handful of tests -- obviously it would be worthless to us."

Dorothy Atkins@doratki·
3h

Downey gets Mattis to acknowledge that Holmes asked him and board members in an email not to talk "on or off the record" about "how our technology works (ie that there is a single device that does all the tests)."

Dorothy Atkins@doratki·
3h

Downey asks Mattis if he knew that Theranos entered into a limited objected experiment deal w/ the DOD. He says no: "we had a few other things going on in the Middle East at this point. I'm not trying to make light of it," but the issue was delegated to his chief of staff.


Dorothy Atkins@doratki·
2h

Downey points to Mattis' 2015 email he wrote from the Middle East after the WSJ articles came out. He agrees with the co's plan to respond to the article "before their repetition becomes accepted urban myth." "I concur with addressing each of the issues," Mattis wrote.

Dorothy Atkins@doratki·
2h

Mattis wrote in the email that Theranos should execute its response to the WSJ articles "rapidly, thoroughly, rapidily (x2) and in an anticipatory mode for the follow on attacks we know are coming…"

Dorothy Atkins@doratki·
2h

Mattis says he and other board members were "shown a lot of data in board meetings," but he wouldn't say the co was data driven. "When the article came out we were scrambling try to validate what Theranos would do. It was, 'Roll up your sleeves now' - we were under attack.'"

Dorothy Atkins@doratki·
2h

Downey points to a Feb 2016 email Holmes forwarded w/ positive dr reviews about Theranos' tests. Mattis replied to the email writing he was "heartened but unsurprised" and asked how long it would take to get the reviews to the press.

Dorothy Atkins@doratki·
2h

On the stand, Mattis explains that "if we had data that could refute [the WSJ stories] we needed to get it out there."

Dorothy Atkins@doratki·
2h

Downey wrapped with Mattis' cross examination pointing to his Dec. 2016 resignation letter. On redirect, prosecutor John Bostic asks him about Theranos' LOE deal w/ the DOD.

Dorothy Atkins@doratki·
2h

Mattis explains that the LOE agreement was just to determine if the devices could be used. "We needed to have the data and the best way to do it" was to put Theranos devices alongside other devices see if it can "stand and deliver," he said.

Dorothy Atkins@doratki·
2h

Mattis: "I took as good faith that what we were being told was accurate and I assumed that when we received Theranos results that was from the Theranos machines." He "would not have tried to deploy it into a different country" if he had known otherwise, he says.

Dorothy Atkins@doratki·
2h

Mattis says "By mid 2016, I didn’t know what to believe about the technology. There had been too many surprises" and Holmes didn't give the board the chance to tell her "don’t roll it out." "We only saw them in the rear-view mirror."

Dorothy Atkins@doratki·
2h

With that, Mattis' examination wrapped. The parties are going to finish w/ Offen's exam and the Balwani/Holmes text messages before ending for the day. What. A. Day.

Dorothy Atkins@doratki·
2h

Prosecutors show the jury Holmes' texts from May 2015 asking Balwani who he thinks talked to the WSJ. Balwani says "Tyler, Erika and Adam." He wrote "we need a better strategy for Normandy" and "we need to sue" Rochelle Gibbons (Ian Gibbon's wife) for defamation.

Dorothy Atkins@doratki·
2h

In July 2015, Balwani texted Holmes "I worked for six years day and night to help you. I am sad at where you and I are. I thought it would be better I know u r angry in ur way. And upset with me for not doing everything you wanted me to do." She replied, "???"

Dorothy Atkins@doratki·
2h

Balwani texted Holmes in July 2015: "I am responsible for everything at Theranos. All have been my decisions too. I won’t transition until u r in a perfect place. U know that. U r underestimating the challenges and being childish. I have been telling u for months."

Dorothy Atkins@doratki·
2h

Balwani texted Holmes in July 2015 "We need to commit to each other and get out of this hell so we can live in paradise." Holmes replied "I have literally been mediating on exact same. Whole time"

Dorothy Atkins@doratki·
2h

In May 2015, Balwani texted Holmes "very hostile so far. They say have complaints." Holmes replies "praying literally non stop." Later, Balwani says "Our validation reports are terrible. Really painful going thru this process. Same issues the FDA pointed out."

Dorothy Atkins@doratki·
2h

Feds finished on direct. Holmes' counsel is up for a short cross - pretty technical so far. The atty notes Offen collected the texts from January 2017 and points out that the timestamps on the text messages are in UTC, not PST.

Dorothy Atkins@doratki·
2h

The defense team's cross of Offen wraps with Offen acknowledging that the text messages don't show when the receiver read the messages. With that, the judge excused the jury until Friday morning at 9 a.m.

Dorothy Atkins@doratki·
2h

Court adjourned until Friday without offering specifics on who will testify. I'm out. Of. Here.
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Friday, Sept. 24th:
*Trial continues (Day 7) (@ 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 (2 men & 3 women). Juror #7 excused & replaced with alternate #1. Now jurors are 8 men & 4 women. Alternates 1 man & 3 women.
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; trial dates 9/24, 9/28, 9/29, 10/1, 10/5, 10/6, 10/8, 10/12, 10/13, 10/15, 10/19, 10/20, 10/22, 10/26, 10/27, 10/29, 11/2, 11/3 so far. Motions hearing on 9/30.

Indictment & court info from 4/11/20 thru 8/26/21 & jury selection (Day 1-3) 8/31/21 to 9/2/21 & trial (Day 1-5) 9/8/21 to 9/21/21 reference post #550 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud

9/22/21 Wednesday, Trial Day 6: Judge Davila is back on the bench. He says he reviewed Holmes' objections to prosecutors' plan to introduce a bunch of text messages between Holmes & Balwani. He's allowing more texts to be presented to the jury for rule "106-purposes" - or completeness.
Holmes' counsel objects to certain texts between Balwani & Holmes being shown to the jury about WSJ stories. Prosecutors claim the texts show Holmes deceived journalists & that is "inextricably intertwined" with the alleged conspiracy. The judge says they're admissible.
Government witnesses: PwC forensic expert Justin Offen.
See post #551 & 554 for more info here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
Judge Davila asked the status of the next witness. Prosecutor John Bostic says they would like to get the next witness done today. Judge Davila suggests we break Offen's testimony to get the next witness up on the stand, whose examination is expected to take about 2-3 hours. Prosecutors are ok with that. Jury is back & the next witness is former Defense Secretary James Mattis & ex-Theranos board member.
See posts #555 & 557 for more info here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
Former Defense Secretary James Mattis continued.
See posts #562 & 563 for more info here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
PwC forensic expert Justin Offen continued.
See post #563 for more info here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
Trial continues on 9/24/21.

*Ramesh “Sunny” Balwani (53/now 56) (CFO & President of Theranos) – Motion hearing on 9/30/21 & trial set to begin on 1/11/22 with jury selection & trial starts on 1/18/22.
 
Elizabeth Holmes plans to accuse ex-boyfriend and former business partner of abuse during her criminal trial, claiming he threw sharp objects at her and controlled how she ate and dressed

Well. It should be a cozy trial. Elizabeth Theranos is going to play "Dependent Personality Disorder". The abusive BF was in control. I didn't know anything about anything. Poor me, I am pregnant.

It will probably work.
@Seattle1 she will probably want numerous breaks to "breastfeed" the little one. I am sure that the baby will be front and center during the trial.

(Breastfeed in quotes...she probably sees the kid once or twice a week. Poor thing is nothing but a prop...MOO).

I've actually wondered if she specifically conceived the child in order to garner sympathy during the trial.
 
Dorothy Atkins@doratki·
5h

It’s 7:30 a.m. and I’m outside the San Jose courthouse for day 7 of US v Elizabeth Holmes. To my great frustration, there’s a line to get inside today. Maybe they all think Mattis will testify again today or something. (He won’t.)
FADrS-kVEAUItZg


Dorothy Atkins@doratki·
4h

Replying to @doratki
Judge Davila is on the bench to talk with the attorneys about an issue that came up with ex-Theranos lab director Dr. Adam Rosendorff. The DOJ says since Rosendorff left Theranos, a new lab he manages was the subject of a CMS probe and the CMS found deficiencies in that lab.

Dorothy Atkins@doratki·
4h

Judge Davila says he doesn't know if Rosendorff's post-Theranos work will be relevant yet, but "let's see where we go." Holmes' atty says they won't go into the topic today on cross but may next week. Sounds like Rosendorff's exam will take up most of trial today.

Dorothy Atkins@doratki·
4h

The judge said he'll hold a hearing on going into Rosendorff's post-Theranos employment Monday, since Rosendorff's examination will likely go into Tuesday. ITMT, the parties will ask him q's about his time at Theranos.

Dorothy Atkins@doratki·
4h

The jury is back in the courtroom (on time today!) and the judge reminds everyone that you can't audio record or photograph anything going on in the courtroom or you'll be subject to sanctions. The gov't calls Adam Rosendorff to the stand.

Dorothy Atkins@doratki·
3h

Rosendorff explains his background. He's from South Africa, and has an MD in Icahn School of Medicine at Mount Sinai. He's qualified to be a CLIA lab director b/c of his MD degree and he had at least a year of practical experience. He said he learned about Theranos from LinkedIn.

Dorothy Atkins@doratki·
4h

Rosendorff says he quit Theranos as lab director in Nov 2014 b/c of the "unwillingness of management" to perform tests as required by law. He says he felt pressured to vouch for tests he didn’t believe in and the co "believed more about PR and funding than about patient care."

Dorothy Atkins@doratki·
3h

Rosendorff interviewed w/ Balwani, Holmes and Daniel Young in a "small room, locked off" from the lab. "I really bought into the idea of laboratory testing being done with a small blood sample... I believed that Theranos had advanced technology that allowed them to do this."

Dorothy Atkins@doratki·
3h

Rosendorff says he was impressed w/ the "earnestness" of the people he met. "I thought it was going to be the next Apple." He says he read some of the patent applications and "I honestly did not know very much about what kind of technology the company was developing or running."

Dorothy Atkins@doratki·
3h

Rosendorff says when he was hired, he didn't initially know who his direct report would be, but he eventually reported to Sunny Balwani.

Dorothy Atkins@doratki·
3h

Rosendorff says Theranos used Siemens devices to test blood. Gov't points to an Aug 2013 email Holmes wrote before a Siemens rep visit telling Rosendorff "you’ll obviously need to make sure our micro-cups & protocols/modifications are not in any way visible to any Siemens rep."

Dorothy Atkins@doratki·
3h

Rosendorff says Theranos cut a deal w/ Safeway but it out was "extremely rushed and hurried." "The general mood of the co was optimistic," he says but "there was a lot of anxiety in the CLIA group" regarding the appropriateness of using modified devices for patient care.

Dorothy Atkins@doratki·
3h

Feds show an Aug 2013 email in which R&D tells Rosendorff none of the assays are "completely through validation" w/ fingerstick. Rosendorff says he was concerned b/c it was 9 days before launch & under CLIA law you must validate a test fully before using it for patient care.

Dorothy Atkins@doratki·
3h

Days later, Rosendorff says he emailed Holmes and Daniel Young Aug 29, 2013 "raising the alarm bells" about the tests which he thought weren't ready for the launch and his email also raised his concerns about staffing and training.

Dorothy Atkins@doratki·
3h

Rosendorff said he emailed Holmes asking her to delay the launch and he didn't make the request lightly. He met w/ her in her office but "she was very nervous. She was not her usual normal self." "She was clearly upset." and her knee was tapping and she was "trembling."

Dorothy Atkins@doratki·
3h

Rosendorff says he asked Holmes to delay the launch and not Balwani b/c "I felt it would have more impact going to Elizabeth directly. I felt many of the concerns raised to Sunny, he would either dismiss them attempt to explain them away or tell me to talk to Daniel Young."

Dorothy Atkins@doratki·
3h

Rosendorff says he didn't realize Theranos was showing patients a Theranos device, but then using non-Theranos devices to test blood until his interviews with the government prosecuting this case.

Dorothy Atkins@doratki·
3h

Feds point to a Nov 2013 email in which Balwani told the lab team developing Theranos' devices to use two Siemens blood test devices. A member of the R&D team replied she was "somewhat concerned" w/ the decision, but they did it anyway. (Holmes was CCed on the emails.)

Dorothy Atkins@doratki·
2h

Rosendorff says in 2014 he emailed Theranos scientist Sharada Sivaraman asking what protocol they use to remove 2 of 6 datapoints in Theranos blood tests. "I was concerned that we didn't have a protocol for it," he says. She responded they were removing the data manually.

Dorothy Atkins@doratki·
2h

Rosendorff says it was common for Theranos assays to fail quality control tests and that would create a backlog and raised accuracy concerns. In March 2014, 26% QC tests failed.

Dorothy Atkins@doratki·
2h

Rosendorff says QC failure rates should be "in the single digits," not the double digits. We're taking a break - back in 30!
 
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Dorothy Atkins@doratki·
2h

We're back. But the judge prefaces the examination by telling folks in the gallery that they can only type on a silent keyboard, and if you don't have a silent keyboard, "You must close your clamshell and not use them."

Dorothy Atkins@doratki·
2h

The judge said if folks don't know if their keyboard is silent, he'll have a U.S. Marshall inform you. (Fortunately we don't have this issue where I'm sitting in the overflow courtroom.)

Dorothy Atkins@doratki·
1h

Rosendorff says in Nov 2013 he emailed Holmes and Balwani telling them he preferred that Theranos tests showed "reference ranges" that were specific to the sample type and whether they used fingerstick or venous draw.

Dorothy Atkins@doratki·
1h

Rosendorff said he escalated the issue and to Holmes and Balwani. He said they should stop using venous blood draws in Theranos tests. Holmes "did not have a clear position" on the issue, but Balwani was "strongly opposed" to stopping the practice, he says.

Dorothy Atkins@doratki·
1h

Balwani replied to Rosendorff's email expressing concerns about QC failures stating "this is not the case." Prosecutor notes that Balwani specialized in software and at one point was enrolled in an MBA, but he doesn't have medical expertise.

Dorothy Atkins@doratki·
1h

Rosendorff said Elizabeth Holmes' brother, Christian Holmes, was "put in the roll as a liaison" between Rosendorff and customers who complained about Theranos test results.

Dorothy Atkins@doratki·
1h

Rosendorff says complaints he received at Theranos were "much more frequent" than the number of complaints he received in his prior job as medical director of the Children's Hospital of Pittsburgh.

Dorothy Atkins@doratki·
1h

(Now all I can think about is how we're all typing on a "clamshell.")

Dorothy Atkins@doratki·
1h

The prosecutor is going through a series of email exchanges from 2013 b/w Sunny Balwani, Sharada Sivaraman that were eventually sent to Holmes about the precision problems Theranos was having with hCG tests.

Dorothy Atkins@doratki·
1h

In May 2014, Rosendorff said he told Holmes he was "freaked out" by the large range of hCG results he was seeing and he thought he should have been included on exchanges about the hCG results. "She said 'don’t be freaked out,' or she didn’t seem alarmed by it," Rosendorff says.

Dorothy Atkins@doratki·
1h

In June 2014, Christian Holmes wrote his sister: “Just fyi-hCG right now causing some serious issues and patient complaints. Been spending all morning talking to docs about just hCG and will continue to do so… it’s a sensitive one obviously b/c of people find out if pregnant."

Dorothy Atkins@doratki·
1h

Christian Holmes sent another email to his sis: "Seems like we also have a capacity issue right now with Edisons at full capacity and venous samples in a serious queue not being run. Went down there and it’s a complete mess." Rosendorff says he wasn't included on the exchanges.

Dorothy Atkins@doratki·
1h

Prosecutor points to more emails from Sept 2014 re HCG issues. It was taking 4 days for patients to get results, and one patient was told she wasn't pregnant when she was. (It's unclear to me if this is the patient Brittany Gould who testified earlier this week.)

Dorothy Atkins@doratki·
1h

Rosendorff says Daniel Young was an exec and wasn't CLIA certified, but he was "very involved in the CLIA lab after the tests were launched. He would often offer his opinion" re. test results. (Just based on his change in tone, it seems like Rosendorff is not a fan of Young.)

Dorothy Atkins@doratki·
54m

Rosendorff says in February 2014, he "suspected" that Theranos' HDL tests weren't working after a spate of low HDL quality control test results.

Dorothy Atkins@doratki·
46m

Rosendorff emailed Balwani and Young, and cc'ed Holmes, telling them he wanted to stop using Theranos' HDL tests, b/c he thought it wasn't good medical practice in light of the problems.
 
Dorothy Atkins@doratki·
46m

Rosendorff said he included Holmes in on the email exchange, b/c at that point he didn't think Balwani and Young would be receptive to his request and "I thought that Elizabeth had more power within the company to make corrections."

Dorothy Atkins@doratki·
45m

Rosendorff said he "got a lot of push back" when he suggested reverting back to using FDA approved devices. That "didn’t go down well with management." Prosecutor asks who was management? He says "Sunny, Elizabeth and Daniel."

Dorothy Atkins@doratki·
36m

Rosendorf emailed Balwani in Aug 2014 on Theranos' C02 tests that "I am thinking since we void all abnormal bicarbonate results, the test has lost any diagnostic value and probably also reliability when results are reported in the normal range."

Dorothy Atkins@doratki·
31m

In Aug 2014, Max Fosque told Rosendoff "Per Elizabeth’s request, in the short term” don't comment on the result report if CO2 values are voided and instead include the message: "CO2 results were not reported due to temporary unavailability of this test for this sample."

Dorothy Atkins@doratki·
31m

Rosendorff says he thought the message wasn't transparent, b/c the issue "was a permanent problem." "I thought at the time that a better solution would be not to offer that test. Don’t have it on the order form if we know we can’t perform it," he said.

Dorothy Atkins@doratki·
21m

Rosendorff says in early Nov 2014 he forwarded himself emails and Theranos docs to his personal account in violation of his NDA b/c he wanted to protect himself in case the government began investigating Theranos and he was considering filing a qui tam whistleblower complaint.


Dorothy Atkins@doratki·
20m

Rosendorff: "I also wanted to get the word out about what was going on at Theranos," and the protection he would get by preserving the docs would outweigh the risk of getting sued by Theranos for violating the NDA.

Dorothy Atkins@doratki·
20m

Rosendorff said he was initially enthusiastic about joining Theranos, but he became "very disillusioned" and started looking for other jobs shortly after joining Theranos in 2013. He again says he thinks the company prioritized PR instead of patient results.

Dorothy Atkins@doratki·
11m

Rosendorff says Theranos used venous blood draws for precision tests b/c "I don’t think practically we could have done it any other way." They would've needed to take 20 fingerpricks to draw enough blood for them, and they probably would "have to prick every finger on a patient."

Dorothy Atkins@doratki·
2m

We're taking a 20 minute recess. Trial should go until 3 p.m. PST today, so we're gettin' close to the weekend...
 
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Dorothy Atkins@doratki·
27m

We're back! Rosendorff says he emailed Balwani about problems w/ Theranos' Potassium, Chloride and Sodium tests in May 2014. His email begins, "sorry to bother you" and suggests a potential solution. Young replied Rosendorff's proposed solution was "not a very good one clearly."

Dorothy Atkins@doratki·
27m

Young told Holmes they were going forward with the tests and Holmes replied "Ok."

Dorothy Atkins@doratki·
19m

Rosendorff says the issues w/ the K, Cl- and Na tests were apparent 5 wks after the commercial launch. "I would complain about them, folks would note the problem, Daniel would say he’s working on a fix, ...the problems might stabilize for a while, but then they would come back."

Dorothy Atkins@doratki·
7m

Rosendorff emailed Balwani, cc'ed Holmes, in Oct 2014 that Theranos' Potassium tests were having problems and they had to void tests that report data above and below critical thresholds.

Dorothy Atkins@doratki·
7m

Rosendorff wrote: “I am not sure of the clinical value of a sodium assay in which the only time we can report is when it is not critical, and the very situations that require accurate measurement and reporting of abnormal of sodium results are voided."

Dorothy Atkins@doratki·
6m

Rosendorff says he was "really struggling" and "grasping at straws" to use Theranos' K tests, but when he left he had never seen its devices perform accurate potassium tests.

Dorothy Atkins@doratki·
47m

Prosecutors are going through a string of emails from Christian Holmes to his sister September 2014 regarding a 'customer issue.' He wrote "it's pretty obvious we have issues with calcium potassium and sodium specifically."

Dorothy Atkins@doratki·
47m

Christian Holmes wrote his sister "Sunny is on these emails, but wanted to get your thoughts specifically on considering to stop reporting these tests until we find the reason we are reporting as we are..."

Dorothy Atkins@doratki·
45m

The email goes on it's "a q around the cost/benefit of continuing to send these results to docs when there seem to be issues with their accuracy. I am also bringing this up b/c I haven't heard any reason/root cause for why these tests are off..."

Dorothy Atkins@doratki·
45m

Christian Holmes wrote "I just get a response from Daniel that 'we are aware of the issues and are conducting a study.' Leaves me a bit hands tied with the docs - obviously I can't tell them we are wrong..."

Dorothy Atkins@doratki·
43m

Rosendorff says he was conflicted b/c he had a duty to the company, but also to patients and drs, and at one point he told doctors the tests were inaccurate. "That caused a lot of emotional discomfort for me," he says.

Dorothy Atkins@doratki·
42m

Rosendorff says management was "pushing" him to rationalize or justify the erroneous results. "Anything other than saying our test is inaccurate," he says. W/ that, trial is breaking for the day...

Dorothy Atkins@doratki·
37m

Judge Davila asks how much longer prosecutors have on Rosendorff’s direct. John Bostic says they’re “closer to the end than the beginning.” The judge replies people say that about him “all the time.” And that’s a wrap!
 
I've actually wondered if she specifically conceived the child in order to garner sympathy during the trial.

I have absolutely no doubt that the pregnancy was a prop. No doubt, the delays due to Covid was not part of the plan.

EH is so impossibly entitled and narcissistic, that she doesn't really believe that she will be put in prison. This is just a minor inconvenience for her. Go through the motions, she thinks she will say it was all someone else's fault, she was used, sigh. Bat eyelashes. A few tears.

Wouldn't be surprised if she gets pregnant again, right away.

Elizabeth Holmes - Wikipedia

The history of her company is interesting. It reminds me of a place I worked. It was supposedly a place to help single mothers. But the staff for fundraising was five times larger than the clinical staff. Almost, as if the "real" program was fundraising.

Interesting that EH's father was the vice CEO of Enron.
 
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Tuesday, Sept. 28th:
*Trial continues (Day 8) (@ 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 (2 men & 3 women). Juror #7 excused & replaced with alternate #1. Now jurors are 8 men & 4 women. Alternates 1 man & 3 women.
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; trial dates 9/28, 9/29, 10/1, 10/5, 10/6, 10/8, 10/12, 10/13, 10/15, 10/19, 10/20, 10/22, 10/26, 10/27, 10/29, 11/2, 11/3, 11/5 so far. Motions hearing on 9/30.

Indictment & court info from 4/11/20 thru 8/26/21 & jury selection (Day 1-3) 8/31/21 to 9/2/21 & trial (Day 1-6) 9/8/21 to 9/22/21 reference post #567 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud

9/24/21 Friday, Trial Day 7: Judge Davila is on the bench to talk with the attorneys about an issue that came up with ex-Theranos lab director Dr. Adam Rosendorff. The DOJ says since Rosendorff left Theranos, a new lab he manages was the subject of a CMS probe and the CMS found deficiencies in that lab. Judge Davila says he doesn't know if Rosendorff's post-Theranos work will be relevant yet, but "let's see where we go." Holmes' atty says they won't go into the topic today on cross but may next week. The judge said he'll hold a hearing on going into Rosendorff's post-Theranos employment Monday, since Rosendorff's examination will likely go into Tuesday.
Government witnesses: Dr. Adam Rosendorff, ex Theranos lab director.
for more info see posts #571 to 574 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
Hearing on Monday, 9/27/21 re Rosendorff's testimony, attorneys only. Trial continues on 9/28/21.

*Ramesh “Sunny” Balwani (53/now 56) (CFO & President of Theranos) – Motion hearing on 9/30/21 & trial set to begin on 1/11/22 with jury selection & trial starts on 1/18/22.
 
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Is it just me or does EH sound like she's imitating Barack Obama? The way she punctuates words and phrases, something about it reminds me of his speaking voice. It's probably just me--I'm not as familiar with Steve Jobs voice and that's probably who she'd really be trying to imitate.
 
Dorothy Atkins@doratki·
3h

Good morning from San Jose! It’s day 8 of US v Elizabeth Holmes and there’s a relatively short line to get in the courthouse - mostly press. Today prosecutors are expected to wrap direct of ex-Theranos lab director Adam Rosendorff, followed by cross. Standby for live tweets…

FAYS0RKVgAMybDt


Dorothy Atkins@doratki·
2h

Ex-Theranos lab director Adam Rosendorff is back on the stand, and John Bostic is up for the gov't with some more q's on direct. He's got at least an hour to go before handing off the witness to the defense team.

Dorothy Atkins@doratki·
2h

Bostic points to an Aug 24 2014 email chain in which a phlebotomist raised a concern about a patient's inaccurate Theranos PT/INR test, which evaluates the ability to form blood clots. The patient developed bruises and the doc realized the tests were wrong after a venous draw.

Dorothy Atkins@doratki·
2h

The doc's concern was sent to Balwani and Daniel Young. Young told Balwani "As I mentioned I had some concerns a few weeks back" about the tests. Balwani asked if Young had concerns about other assays, and Young replied yes: hCG, testosterone, VB12, TSH, CO2, Glucose and K.

Dorothy Atkins@doratki·
2h

Moving on to another topic, Rosendorff says he expressed his serious concerns to Holmes and Balwani about Theranos' proficiency tests in mid-2014 during a meeting. "Everybody was aware that we did not have a plan in place," he said.

Dorothy Atkins@doratki·
2h

Rosendorff: "I left the meeting still uncomfortable. I felt management was paying lip service to the issue," and they wouldn't give him the resources he needed for Theranos' proficiency tests.

Dorothy Atkins@doratki·
2h

In another email chain from Feb 2014, Balwani wrote Rosendorf that "our validation against immulite has been excellent in the past. It is these [proficiency test] samples that are off." But Rosendorff says he disagreed with Balwani's take.

Dorothy Atkins@doratki·
1h

In a Feb 2014, Rosendorff wrote an email saying Theranos need to do an "alternate assessment protocol," or APA, for proficiency testing...

Dorothy Atkins@doratki·
1h

Elizabeth Holmes replied to Rosendorff: "We engaged top counsel on this some time ago, sunny will debrief you tomorrow - It is critical that no one is guessing on matters like these. This is why we retained the best regulatory counsel in the country."

Dorothy Atkins@doratki·
1h

Balwani also replied to Rosendorff: "I’m extremely irritated and frustrated by folks with no legal background taking legal positions and interpretations on these matters and junior CLIA and non-CLIA personnel challenging our CLIA SOPs. This must stop..."

Dorothy Atkins@doratki·
1h

Balwani's email went on: "...These past few days we have wasted so much time talking to people outside of CLIA who have come to us to share that our PT on Vitamin D on Edison has failed. These PT samples should have never been run on Edison to begin with..."

Dorothy Atkins@doratki·
1h

Balwani: " We should follow our current SOPs regarding [proficiency testing]... No personal opinions. Right now every CLS or TS or GS considers themselves and regulatory expert and this culture must be nipped in the bud." Rosendorff again said he disagrees with Bawlani's take.

Dorothy Atkins@doratki·
1h

In May 2014, Rosendorff emailed Theranos VP Chinmay Pangarkar for updates on Edison proficiency tests and BCC'ed his personal email on the exchange to protect himself in case gov't investigation. "I had done everything I could from a laboratory perspective," he said.
 
Dorothy Atkins@doratki·
1h

Rosendorff says when he served as Theranos' lab director, he wasn't aware Holmes' brother, Christian Holmes, was approving patient blood redraws. Rosendorff notes that anyone making a clinical decision has to be on CMS roster - a 'form 209' - and Christian wasn't on that roster.

Dorothy Atkins@doratki·
1h

Rosendorff says during the CLIA inspection in November 2013, Sunny Balwani said no one was allowed to go into or out of the Normandy lab (where the Edison devices were) even though the SOP is "to show inspectors what they asked for."

Dorothy Atkins@doratki·
1h

Rosendorff testifies that Young said they shouldn't mention Theranos' other lab with modified Siemens blood testing devices unless inspectors "bring it up."

Dorothy Atkins@doratki·
1h

Rosendorff said in October 2014, Theranos was receiving many doctor complaints and the number of issues "reached a crescendo for me," and so he quit the next month.

Dorothy Atkins@doratki·
1h

Before quitting in Nov 2014, Rosendorff told Christian Holmes he's "going to pass" on defending Theranos' test results when a clinician asked to speak to Theranos' lab director.

Dorothy Atkins@doratki·
1h

Christian Holmes replied to Rosendorff that "passing" on talking to a clinician re interpreting results "is not an option." Elizabeth wrote her bro privately "You handled this excellently."

Dorothy Atkins@doratki·
1h

Rosendorff says he was concerned Theranos was not disclosing to patients the method used to run tests or whether the tests were drawn venously or via fingerprick, while management "made it very clear what the messaging should be" - that he should defend the tests' accuracy.

Dorothy Atkins@doratki·
1h

In Nov 2014, Rosendorff emailed Elizabeth Holmes asking her to remove him as Theranos' CLIA lab director. He wrote "I feel really uncomfortable ...I am feeling pressured to vouch for results that I cannot be confident in..."

Dorothy Atkins@doratki·
1h

Holmes replied: How sad and disappointing... Outside the fact you’ve never emailed me any concerns you allude to...you know from every convos we’ve ever had ..how fundamental it is to all of us for you or any other employee never to do anything you're not completely confident in.

Dorothy Atkins@doratki·
1h

Prosecutor points to a Nov 27 2014 text exchange in which Elizabeth Holmes told Balwani they raised $150M from Walmart heiress Alice Walton and "Rupert [Murdoch] over $100M"

Balwani replied "awesome" and "they are not investing in our company they are investing in our destiny."

Dorothy Atkins@doratki·
1h

Before Rosendorff left, he said Balwani emailed him criticizing him. He forwarded the email to Elizabeth Holmes and wrote "I find Sunnys response offensive and disingenuous. He should apologize.” She sent his email to Balwani and said they need to respond and "cut him Monday."

Dorothy Atkins@doratki·
1h

Rosendorff said he didn't make the decision to quit lightly and when he left he refused to shake Balwani's hand.

Dorothy Atkins@doratki·
1h

Prosector shows the jury Elizabeth Holmes' Dec. 26 2014 text message to Balwani writing that "This year is our year. We can never forget this tiger." Balwani replied "We will execute this year," and Holmes responded that "and for our kids never forget who we are."

Dorothy Atkins@doratki·
1h

The feds wrapped direct examination of Rosendorff. We're taking a 30 minute break, and we'll be back w/ his cross examination.
 
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