GUILTY CA - Ramesh “Sunny” Balwani, 56, (Theranos), wire fraud charges

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Dorothy Atkins@doratki
3h

It's an overcast morning in San Jose, and ex-Theranos lab associate Erika Cheung is back on the stand as the 1st witness in Sunny Balwani's criminal fraud trial. ICYMI, here's my coverage of yesterday's trial openings in which Balwani blamed Holmes.

Balwani Blames Holmes As 2nd Theranos Fraud Trial Opens - Law360


Dorothy Atkins@doratki
3h

I'm not live tweeting Erika Cheung's direct examination, since it's largely the same as when she testified on direct in Elizabeth Holmes' trial, but I'll tweet her cross exam & redirect. (Also ICYMI, here's the start of my thread on her Holmes' trial exam)

Dorothy Atkins@doratki
· Sep 15, 2021
Erika Cheung is a former Theranos lab associate who worked oct 2013-april 2014 and resigned b/c she didn't feel comfortable processing patient samples w/ Theranos' tech. Holmes' counsel had sought to limit Cheung's testimony on hearsay grounds.
Click to expand...
 
Dorothy Atkins@doratki
20m

Trial took a break, and Erika Cheung's direct exam just wrapped. Moments ago she broke down crying as she was describing sending letters to federal regulators about Theranos after Boies Schiller contacted her and threatened her w/ litigation. On cross now.

Dorothy Atkins@doratki
18m

Jeff Coopersmith is up for Balwani & says he's going to "start with easy questions." He asks Cheung about her job app process. She says she wanted to work in Theranos' R&D lab instead of the CLIA lab. "I don't think I had a good understanding of what CLIA lab was, to be honest."

Dorothy Atkins@doratki
11m

During her direct exam, Balwani's counsel raised more objections to prosecutor's qs than Holmes' counsel. During Holmes' trial, Holmes' atty Lance Wade was also unusually apologetic and non-aggressive during his exam of Cheung - I don't expect Coopersmith will do the same.

Dorothy Atkins@doratki
11m

Cheung is soft spoken on the stand - so much so that it can be hard to hear her at times. She acknowledges that she was upset in Dec 2013 when Theranos switched her from the startup's R&D team to the CLIA team. "I think I was initially upset, but then I was fine," she says.

Dorothy Atkins@doratki
4m

Coopersmith points out that Cheung included Professor Jack F Kirsch as a reference in her CV for Theranos, and she admits that she never took a class with him at UC Berkeley and doesn't know him personally.

Dorothy Atkins@doratki
44m

Coopersmith points out that Theranos offered Cheung $19 an hour as a starting salary and she received overtime pay with benefits. She also acknowledges that her employment agreement also includes a nondisclosure provision to protect Theranos' IP.

Dorothy Atkins@doratki
22m

Coopersmith points to a Feb 2014 email to Cheung from her Theranos manager, Mark Pandori, who gave her instructions on "SOP testing" for the Edison devices, to "make certain that the SOP on file are accurate with regard to how the testing is actually performed for patients."

Dorothy Atkins@doratki
13m

Cheung acknowledges that Theranos had procedures for running tests on its devices. Coopersmith is really spending a lot of time highlighting the company's written policies on quality control tests for its blood sample cartridges and devices.

Dorothy Atkins@doratki
8m

Coopersmith is going line by line reading Cheung Theranos' written quality control testing policy. (In other news, I forgot my coffee thermos at home this morning and it is starting to feel like the biggest mistake of my life.)

EDITED TO ADD:

Dorothy Atkins@doratki
30m

Trial is on another break. Some have expressed shock over Cheung’s $19 hourly pay at Theranos. Tech reporting legend
@scottbudman
just pointed out to me that some young workers join startups out of college for stock options, but the attys didn’t mention if Cheung was offered any.
 
Last edited:
Dorothy Atkins@doratki
1h

We're back, and Coopersmith is back asking Cheung about various Theranos policy and procedure documents. Cheung's answers are mostly short 'yes's and 'correct.' Occasionally she asks him to clarify his questions.

Dorothy Atkins@doratki
59m

Coopersmith counters Cheung's criticisms of Theranos cutting QC data outliers, noting her boss OKed the policy

Atty: She has a Phd

Cheung: Yes

A: She has a wealth of knowledge

C: Yes

A: And that’s what she decided, that it would be appropriate to delete the outliers?

C: Yes


Dorothy Atkins@doratki
32m

Cheung acknowledges that she wasn't involved with modifying commercial blood-testing devices at Theranos and she didn't work closely with validating Theranos' blood-tests. Her job was primarily to run quality control tests. Trial is breaking for the day.

Dorothy Atkins@doratki
25m

The jury left and the attorneys are arguing over evidentiary issues, including Balwani's counsel mentioning in openings the missing Theranos LIS database. The judge says it's a "serious issue." (I'm actually surprised prosecutors haven't moved for a mistrial over it.)

Dorothy Atkins@doratki
21m

Judge Davila is back to his door metaphors and compares the door that has been opened by Balwani's counsel mentioning the missing database to the door that Alice opens in "Alice in Wonderland." "I’m no Lewis Carroll and neither are you, but there is a door that has been opened."

Dorothy Atkins@doratki
20m

Trial broke for the day without any resolution to that open-door issue. We're breaking until next week on Thursday, I believe. (A juror is traveling for a wedding.)
 
Niner said:
If anyone sees "what" gender the alternate is - please let me know. I have for the time being marked it as a "male".
TIA! :)
Click to expand...
UndiscoveredTruth said:
Dorothy Atkins@doratki
45m

The judge swore in 6 men and 6 women to serve as the jury panel and two women and four men were sworn in as alternates. One alternate said during voir dire he watched a Theranos-inspired Law & Order episode w/ his wife and he's been a juror in 2 trials involving assault claims.
Click to expand...
 

I did get the "original" jurors' genders - just wondering about the replacement of the alternate - whether it was a female or a male. I moved a male alternate... so if you see or anyone else sees a gender - please post.
 
Here is when they (the jurors) return - next Wednesday, not next Thursday as the tweet said.

Tuesday, Mar 29 2022
10:00AM
5:18-cr-00258-EJD-2 - USA v. Ramesh Sunny Balwani
Motion for Dismissal or Other Remedies

Wednesday, Mar 30 2022
09:00AM
5:18-cr-00258-EJD - USA v. Ramesh Balwani
Jury Trial

link: CALENDAR
 
Niner said:
I did get the "original" jurors' genders - just wondering about the replacement of the alternate - whether it was a female or a male. I moved a male alternate... so if you see or anyone else sees a gender - please post.
Click to expand...
Haven't read any reference to the gender of the alternate -- only that the dismissed juror was male.

Theranos Saga: What's up with Sunny's Trial?
 
Tuesday, March 29th:
*Motion to Dismiss Hearing (@ 10am PT) - CA – *Ramesh “Sunny” Balwani (53/now 56) (CFO & President of Theranos) indicted & charged (6/14/18) & arraigned (6/15/18) with 9 counts of wire fraud & 2 counts of conspiracy to commit wire fraud. 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 & a fine of $2.75 million, plus restitution, & $250K for each individual count of wire fraud & conspiracy. Plead Not guilty.
Defrauding investors out of $700 million in funding for their blood-testing startup Theranos.
Trial began on 3/22/22. Jury: 12 jurors (6 women & 6 men) & 6 alternates (2 women & 4 men). 3/21/22: Jury #1 sick, alternate moves to jury. 12 jurors (6 women & 6 men) & 5 alternates (2 women & 3 men). Trial Court will be in session on Tuesdays, Wednesdays & Fridays (from 9-3), but the jury may be asked to come in on some Mondays & Thursdays as well. Trial dates so far: 3/29 with motion to dismiss hearing @ 10am no jurors, 3/30, 4/1, 4/5, 4/6, 4/12, 4/13, 4/15, 4/19, 4/20, 4/22, 4/26, 4/27, 5/3 & 5/4 so far.
Indictment & court info from 4/11/20 thru 3/8/22 & Jury selection (Day 1-4) 3/9/22 to 3/15/22 & 3/16 to 3/21/22 & Trial Day 1 (3/22/22) reference post #61 here:
CA - Ramesh “Sunny” Balwani, 56, (Theranos), wire fraud charges
3/23/21 Wednesday, Trial Day 2: Government witnesses: former Theranos lab associate Erika Cheung Erika Cheung is back on the stand.
for more info see posts #62 to 64 here:
CA - Ramesh “Sunny” Balwani, 56, (Theranos), wire fraud charges
Breaking until next week on Tuesday, 3/29 (a juror is traveling for a wedding). With a Motion for Dismissal or other remedies hearing at 10am. Jury trial (Day 3) continues on 3/30/22.
*Elizabeth A. Holmes (34/now 37) (CEO of Theranos) – Trial began on 9/8/21 & ended 1/3/22 with a verdict of guilty on 4 counts of 11. Next sentencing hearing on 9/26/22.
 
Wednesday, March 30th:
*Trial continues (Day 3) (@ 9am PT) - CA – *Ramesh “Sunny” Balwani (53/now 56) (CFO & President of Theranos) indicted & charged (6/14/18) & arraigned (6/15/18) with 9 counts of wire fraud & 2 counts of conspiracy to commit wire fraud. 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 & a fine of $2.75 million, plus restitution, & $250K for each individual count of wire fraud & conspiracy. Plead Not guilty.
Defrauding investors out of $700 million in funding for their blood-testing startup Theranos.
Trial began on 3/22/22. Jury: 12 jurors (6 women & 6 men) & 6 alternates (2 women & 4 men). 3/21/22: Jury #1 sick, alternate moves to jury. 12 jurors (6 women & 6 men) & 5 alternates (2 women & 3 men). Trial Court will be in session on Tuesdays, Wednesdays & Fridays (from 9-3), but the jury may be asked to come in on some Mondays & Thursdays as well. Trial dates so far: 3/30, 4/1, 4/5, 4/6, 4/12, 4/13, 4/15, 4/19, 4/20, 4/22, 4/26, 4/27, 5/3, 5/4, 5/10 & 5/11 so far.
Indictment & court info from 4/11/20 thru 3/8/22 & Jury selection (Day 1-4) 3/9/22 to 3/15/22 & 3/16 to 3/21/22 & Trial Days 1-2 (3/22 to 3/23/22) reference post #69 here:
CA - Ramesh “Sunny” Balwani, 56, (Theranos), wire fraud charges
3/29/22 Tuesday, motion hearing: Judge sealed courtroom for motions hearing – no info available. Jury trial (Day 3) continues on 3/30/22.
*Elizabeth A. Holmes (34/now 37) (CEO of Theranos) – Trial began on 9/8/21 & ended 1/3/22 with a verdict of guilty on 4 counts of 11. Next sentencing hearing on 9/26/22.
 
scott budman[URL='https://twitter.com/scottbudman']@scottbudman[/URL]

#Update: Back in court for the trial of Sunny Balwani. Former Theranos employee and whistleblower Erika Cheung is on the stand, testifying that employees removed data from tests to make results look better.



11:33 AM · Mar 30, 2022

scott budman@scottbudman

#Update: Erika Cheung on why she became a whistleblower after she left #Theranos: "When I worked at the company, we did a lot to deceive regulators. People needed to see the truth about what was happening behind closed doors."

11:56 AM · Mar 30, 2022·

scott budman@scottbudman

Erika Cheung just wrapped her testimony. The former #Theranos employee visibly sighed with relief when dismissed from the witness stand. Clearly, this was a difficult several days of testimony.

12:31 PM · Mar 30, 2022

scott budman@scottbudman

#Update: One more witness today in the trial of Sunny Balwani: Former Theranos Lab Director Mark Pandori, who testifies that the odds of getting an accurate result from a Theranos testing machine was "like flipping a coin."

2:31 PM · Mar 30, 2022·
 
Thanks for posting the tweets @Seattle1 :D

(I found the following tweet from Dorothy so I'll take a look at the tweets from Bonnie Eslinger and post accordingly!)

Dorothy Atkins@doratki
3h

I'm covering Facebook's multi BILLION-with-a-B tax trial this week, but my colleague
@bonnieeslinger
is in San Jose covering Sunny Balwani's trial. Here's her recap from yesterday when ex-Theranos lab director Mark Pandori took the stand for the 1st time.

Balwani 'Angry' At Quality Control Advice, Theranos Jury Told - Law360


EDITED TO ADD:

Bonnie Eslinger does not appear to have tweeted anything re Sunny Balwani's trial, from what I can see anyway! :(
 
Last edited:
Friday, April 1st:
*Motion Hearing (@ 8:30am) & *Trial continues (Day 4) (@ 9am PT) - CA – *Ramesh “Sunny” Balwani (53/now 56) (CFO & President of Theranos) indicted & charged (6/14/18) & arraigned (6/15/18) with 9 counts of wire fraud & 2 counts of conspiracy to commit wire fraud. 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 & a fine of $2.75 million, plus restitution, & $250K for each individual count of wire fraud & conspiracy. Plead Not guilty.
Defrauding investors out of $700 million in funding for their blood-testing startup Theranos.
Trial began on 3/22/22. Jury: 12 jurors (6 women & 6 men) & 6 alternates (2 women & 4 men). 3/21/22: Jury #1 sick, alternate moves to jury. 12 jurors (6 women & 6 men) & 5 alternates (2 women & 3 men). Trial Court will be in session on Tuesdays, Wednesdays & Fridays (from 9-3), but the jury may be asked to come in on some Mondays & Thursdays as well. Trial dates so far: 4/1, 4/5, 4/6, 4/12, 4/13, 4/15, 4/19, 4/20, 4/22, 4/26, 4/27, 5/3, 5/4, 5/10 & 5/11 so far.
Indictment & court info from 4/11/20 thru 3/8/22 & Jury selection (Day 1-4) 3/9/22 to 3/15/22 & 3/16 to 3/21/22 & Trial Days 1-2 (3/22 to 3/23/22) & hearing on 3/29/22 reference post #70 here:
CA - Ramesh “Sunny” Balwani, 56, (Theranos), wire fraud charges
3/30/22 Wednesday, Trial Day 3: Government witnesses: Erika Cheung back on stand. Former Theranos Lab Director Mark Pandori.
for more info see post #72 here:
CA - Ramesh “Sunny” Balwani, 56, (Theranos), wire fraud charges
Mark Pandori continued.
for more info see post #75 here:
CA - Ramesh “Sunny” Balwani, 56, (Theranos), wire fraud charges
Motion to strike hearing @ 8:30am & Trial continues on 4/1/22 @ 9am.
*Elizabeth A. Holmes (34/now 37) (CEO of Theranos) – Trial began on 9/8/21 & ended 1/3/22 with a verdict of guilty on 4 counts of 11. Next sentencing hearing on 9/26/22.
 
Well - looks like no tweets for yesterday - but I did find an article.

Leader or Follower? Defense Team Tries to Distance Former COO From Theranos

April 1, 2022

A leader, or a follower? That's the battle shaping up in the fraud trial of Sunny Balwani, the former partner of Elizabeth Holmes, and chief operating officer at Theranos.

With former Theranos lab director Mark Pandori back on the stand, the public got a better idea of where both the prosecution and defense teams are likely to go in the trial of Balwani.

The prosecutors showed several emails from Balwani to Theranos executives and other employees about the company's blood testing devices, trying to establish that he, too, was making executive decisions.
[.....]
The Balwani trial will continue next week where the court is likely to hear more from those who ran, and worked in, the Theranos labs.


can anyone read this? I can't - would be interested in "what" the Judge is pizzed about! :)

'Don't Threaten Me,' Judge Warns Balwani Atty At Fraud Trial - Law360

can't find any other articles about Friday's trial....

edited to add next trial date is Tuesday, April 5th.
 
Niner said:
Well - looks like no tweets for yesterday - but I did find an article.

Leader or Follower? Defense Team Tries to Distance Former COO From Theranos

April 1, 2022

A leader, or a follower? That's the battle shaping up in the fraud trial of Sunny Balwani, the former partner of Elizabeth Holmes, and chief operating officer at Theranos.

With former Theranos lab director Mark Pandori back on the stand, the public got a better idea of where both the prosecution and defense teams are likely to go in the trial of Balwani.

The prosecutors showed several emails from Balwani to Theranos executives and other employees about the company's blood testing devices, trying to establish that he, too, was making executive decisions.
[.....]
The Balwani trial will continue next week where the court is likely to hear more from those who ran, and worked in, the Theranos labs.


can anyone read this? I can't - would be interested in "what" the Judge is pizzed about! :)

'Don't Threaten Me,' Judge Warns Balwani Atty At Fraud Trial - Law360

can't find any other articles about Friday's trial....

edited to add next trial date is Tuesday, April 5th.
Click to expand...

Actually, Judge Edward Davila very quickly advanced to the top of my favorite US District Court Judges!

Judge Davilia was upset when he had to dismiss the jurors early because the defense attorney asked for a sidebar with only 17 minutes left in the day.

The defense was questioning Pandori (former Theranos Lab Director) about an email he allegedly sent to another lab director on his last day of work. Pandori responded multiple times that he didn't recall the email. The defense tried again, asking if it was possible that he might have written it, and Pandori replied it was possible.

From the link:

"Why are we wasting time?" asked the judge. "We had 17 minutes
and surely, surely you could have touched on another subject and come back to this … I had to send the jury home early and it's unfortunate."

[..]

"This is the tail end of that," said Jeffrey Coopersmith of Orrick. "This is informing the issue of why he left."

The problem is, the judge said, is it's not known if the memo is actually Pandori's own words.

Coopersmith told the court that, in the end, the former lab director had "hedged a little bit" by saying he didn't have a memory of the document.

The judge challenged that assertion.

"You repeated the question again and again and again, and we know what witnesses do," Judge Davila said. "They'll yield, they'll say 'yeah, it's possible.'"

The government's lawyer, John Bostic, told the judge that, under a stipulation between the parties, documents stored and produced by Theranos are admissible, but only if there are no issues with authenticity.

Coopersmith told the court that there were numerous ways to authenticate the email and report, which he said was given to the government by Theranos and was numbered in a way that showed it was one of the documents stipulated for admission.

"Here's the bottom line," Coopersmith said. "If this document doesn't come in from Dr. Pandori … we'll do this the hard way … we'll have a paralegal lined up from the U.S. Attorney's Office about what they received from Theranos … "

Judge Davila cut Coopersmith off.

"Don't threaten me, you're better than that," he said.​
 
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