CA - Elizabeth Holmes (Theranos) Wire Fraud

[Seattle1]

But now I do see she has a motions hearing on 8/9. Must be psychic!

I just noticed that the 10 AM Misc Motions hearing on 8/9 also includes Sunny.
Perhaps the hearing is more for his benefit...

I just watched Stanford Univ undergraduate outreach discussing ethics with guests
Tyler Shultz (Stanford, ’13) and Erika Cheung (UC Berkeley, ’13).

They recounted their role as the whistleblowers who exposed the unethical practices that led to the high-profile fall of Theranos.

It's good to also listen to actual employees of Theranos rather than the bestseller authors that tend to dominate the media coverage on this case.

One of the most interesting takeaways for me was when both Schultz & Cheung concurred that while EA may have been the founder of Theranos, Sunny was the person that was running the show.

Thinking about this statement from the former employees, I realized that Sunny never settled with the SEC -- he's still facing those charges!

It seems to me that Sunny strategically used his pretrial information-gathering requests -- pushing the boundaries of the civil litigation (i.e., jeopardize the criminal case against him)-- all to force the federal prosecutors to pause the SEC suit against him!

So Sunny gets both his criminal and civil trials pushed all the way out to January 2022 and beyond.....

And just to be clear, Sunny and EA are facing identical charges.

U.S. v. Elizabeth Holmes, et al.

 

[Seattle1]

https://www.cnbc.com/2019/06/10/sunny-balwany-former-theranos-coo-to-fight-criminal-charges.html

June 10, 2019

[..]

Inside the courtroom, lawyers for the U.S. Department of Justice and Balwani battled over the Securities and Exchange Commission’s case.

The government filed a motion in April to intervene in the SEC’s civil enforcement action, arguing that parties and the court should not be burdened by civil discovery while the criminal case is pending.

Prosecutors also claim Balwani is using his pending SEC case to benefit his criminal indictment.

“It’s apparent Mr. Balwani is using civil discovery to gather evidence for the reason of his criminal case,” said Robert Leach, assistant U.S. Attorney.

Balwani’s attorney argued there’s no basis to issue a stay and if prosecutors have an issue with a subpoena they can object to it.

“The government chose to bring these two cases forward and the government can simply dismiss it,” said Coopersmith.

The SEC, also present in court, supported the request for a hold in its case against Balwani.

“It’s rare that the SEC affirmatively supports a stay,” said Mark Katz, an attorney for the SEC. “This is a rare situation. We’ve seen depositions with very sensitive information and we ask that you consider this stay.”

“There’s been great attention in what the truth is and what happened here,” said Leach. “The only way to do that is through the criminal trial.”

Holmes agreed to settle her fraud charges brought on by the SEC last year.

 

[Niner]

Thanks for that info on the SEC suit for Sunny - did not know that - thought he had settled like Holmes did.

 

[Seattle1]

Thanks for that info on the SEC suit for Sunny - did not know that - thought he had settled like Holmes did.

I never suspected otherwise until listening to Schulz and Cheung take questions from the audience. Their responses definitely piqued my curiosity about Sunny.

 

[RickshawFan]

I just watched Stanford Univ undergraduate outreach discussing ethics with guests
Tyler Shultz (Stanford, ’13) and Erika Cheung (UC Berkeley, ’13).

Snipped for focus
IIRC these two were the foundational witnesses/whistleblowers for Carreyrou's book.
FWIW I loved that these two moved on with their lives and are "paying it forward" by guiding others in the right thing to do. In every dimension, that's about as ethical as you can get: that's the exact opposite of the protagonists— guilty of the particular charges or not—in this case. Their witness potentially saved millions of scammed Walgreens customers.

 

[JerseyGirl]

Theranos Patients: The Emerging Wild Card in the Trial of Elizabeth Holmes

The repeatedly delayed trial—postponed once because Ms. Holmes was due to have a baby herself—is expected to be one of the most widely watched corporate-fraud cases in years. Scheduled to begin with jury selection on Aug. 31 in San Jose, Calif.

 

[Niner]

Looks like 8/9 hearing was moved to 8/10.

Tuesday, Aug 10 2021
08:00AM
5:18-cr-00258-EJD-1 - USA v. Elizabeth A. Holmes
AUSA: Jeffrey Schenk / DEF: Kevin Downey
Motion by Dow Jones Co. (Intervenor) Status Hearing (Via Zoom Webinar Remotely)

5:18-cr-00258-EJD-2 - USA v. Ramesh Sunny Balwani
AUSA: Jeffrey Schenk / DEF: Jeffrey Coopersmith
Motion by Dow Jones Co (Intervenor) Status Hearing (Via Zoom Webinar Remotely)

Rest for 9/7 thru 9/10 stay the same, plus:

Tuesday, Sep 14 2021
09:00AM
5:18-cr-00258-EJD-1 - USA v. Elizabeth A. Holmes
AUSA: Jeffrey Schenk / DEF: Kevin Downey
Jury Trial


link: CALENDAR

 

[RickshawFan]

What do you think the motion from Dow Jones is about? And what does "Intervenor" mean in this context?
Is September 14 a new trial date? Or do jury questionnaires, jury selection, etc. still begin on August 31?

 

[Seattle1]

What do you think the motion from Dow Jones is about? And what does "Intervenor" mean in this context?
Is September 14 a new trial date? Or do jury questionnaires, jury selection, etc. still begin on August 31?

Do you have a link to reference? Not certain of the questions.

 

[Niner]

What do you think the motion from Dow Jones is about? And what does "Intervenor" mean in this context?
Is September 14 a new trial date? Or do jury questionnaires, jury selection, etc. still begin on August 31?

No the trial is still starts on 8/31 with jury selection & on 9/1 & then they have dates for the trial - it's not going to be every day trial - from my notes:

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.

So far they have these dates set for trial: 9/7, 9/8, 9/10, 9/14 & 9/15

 

[Seattle1]

What do you think the motion from Dow Jones is about? And what does "Intervenor" mean in this context?
Is September 14 a new trial date? Or do jury questionnaires, jury selection, etc. still begin on August 31?

Do you have a link to reference? Not certain of the questions.

Dow Jones is the publisher for WSJ. WSJ wants immediate access to the transcripts probably citing media & FOIA claims. Just like the accused, it's all about headlines and money for WSJ.

This case made reporter /auther Carreyrou a millionaire. He resigned from WSJ after 20 years because WSJ prohibits reporters from accepting $$$ for public appearances and Carreyrou was in high demand after his book out. And now he has a movie deal...

‘Bad Blood’ Author Left Wall Street Journal

 

[Niner]

A new additional date added to court site! All others stay the same.

Monday, Aug 16 2021

09:00AM
5:18-cr-00258-EJD-1 - USA v. Elizabeth A. Holmes (NC)
AUSA: Jeffrey Schenk / DEF: Kevin Downey
Status Conference (IN-COURT)

CALENDAR

 

[nyvictoria]

Continuing episodes of the podcast “The Drop Out: Elizabeth Holmes on Trial” They will be in the courtroom to cover the trial starting 8/31.

The Dropout Podcast - ABC Audio

 

[Luna20]

Disgraced Theranos Founder Elizabeth Holmes Welcomes First Baby Ahead of Criminal Fraud Trial

 

[Seattle1]

If I'm remembering correctly it was around July 9 - 11 - but don't take my word for it....

edited to add - found some of my old notes:

3/2/21 Update: Counsel for Defendant advised the government that Defendant is pregnant, with an expected due date in July 2021, prosecutors & attorneys for Holmes write. Both parties agree that, in light of this development, it is not feasible to begin the trial on July 13, 2021. Lawyers for Holmes asked the judge to delay the start of jury selection to 8/31/21, after her due date.

You were downright close @Niner!

According to PEOPLE, EH gave birth to a son on July 10, 2021.

 

[Seattle1]

https://www.cnbc.com/2021/08/06/elizabeth-holmes-gives-birth-as-theranos-fraud-trial-nears.html

Aug 5, 2021

Records filed with the San Mateo County Recorder office, obtained by CNBC on Thursday, reveal Holmes and her partner, Billy Evans, had a baby on July 10 at Sequoia Hospital in Redwood City, California.

One of Holmes’ attorneys, Amy Saharia, declined to comment on the news.

The trial was originally scheduled to begin in July, but was pushed back to August 31 due to her pregnancy. Holmes faces nine counts of wire fraud and two counts of conspiracy to commit wire fraud.

[..]

This isn’t the only baby news for the Holmes family. Her brother Christian, who also worked at Theranos, and his wife are expecting a child in September, according to the couple’s online registry.

 

[Seattle1]

Greed begets more greed... and this June 2021 announcement comes as no surprise.

Bad blood? The Wall Street Journal apparently wants its reporters to pay to use their own reporting in books

 

[Niner]

Actually according to the article - she faces 10 counts of wire fraud:

Another count of wire fraud was added in 2020, bringing the total number of felony charges to 12.

I guess my memory is okay - on the birth date of the baby boy!

 

[Seattle1]

Actually according to the article - she faces 10 counts of wire fraud:

Another count of wire fraud was added in 2020, bringing the total number of felony charges to 12.

I guess my memory is okay - on the birth date of the baby boy!

I wonder of CNBC used the US Justice site to quote the charges?
U.S. v. Elizabeth Holmes, et al.

 

[Niner]

I wonder of CNBC used the US Justice site to quote the charges?
U.S. v. Elizabeth Holmes, et al.

No doubt. That's where I got my info! I think!