When Elizabeth Holmes and Ramesh "Sunny" Balwani split, her life was shattered. And what is it that caused that? And a few minutes later, Balwani told Holmes "Getting private security for u". The defense has in these documents suggested that theres a specialist, an expert that they could call on at trial who is an expert in sexual assault and the impact of that. And she did that. In this matter, the court is going to impose a sentence that the court finds is sufficient but not greater than necessary, to comply with the purposes set forth in 18 United States code section 3553. Shes an outlier. It might seem like a slam dunk case for the prosecution. She is apparently referring to Alice Walton of Walmart fame. Holmes, welling up and sniffling as she recited the years-old messages to her onetime boyfriend, looked uneasy as Leach pressed her on the particulars of the texts. But theres still so much that feels relevant for more relatable reasons. These letters speak to a recognition that companies fail, they falter. Three years after she was first indicted, Holmes goes on trial for conspiracy and fraud. The conclusion came roughly four months after testimony began, and. Since then, Holmes has settled separate civil fraud charges with the Securities and Exchange Commission without admitting guilt. AMY OSBORNE/AFP via Getty Images Balwani wrote to Holmes, I am narrowing this down in CLIA. I'm a native. Holmes is currently on trial and accused of defrauding Theranos Inc investors of hundreds of millions of dollars. About The SEC. That is our show for today. But then I don't want distractions until we win. Down to 5 people. . Other passionate texts read, Madly in love with you and your strength and Feel like the luckiest person in world BC I have you.. S1: said, no, I dont know. S2: I was afraid of needles. This is a fraud case where an exciting venture went forward with great expectations and hope only to be dashed by untruth, misrepresentations, hubris, and plain lies. The letters that were referenced, I've read them, they were meaningful. One day earlier, Holmes delivered emotional testimony to the court that Balwani was a manipulative partner who emotionally and sexually abused her, just as she adored and poured faith into him. S2: Ive thought a lot about that, too, and I agree with that. They certainly watched the story unfold and it will send a signal. S1: The US in 2018, the United States filed criminal charges against her and her former CEO and boyfriend, Sunny, about warning next week. Bad timing. He texted Holmes: "The Vegas trip is such a distraction. And I think in the last year and a half Ive thought so much about. The tragedy of this case is that Ms. Holmes is brilliant. Think outside the box this Mothers Day and opt for gifts other than flowers and chocolate. Her company struck a deal with Walgreens to put Theranos blood testing centers in thousands of drugstores. How do we keep that going? Here is Elizabeth Holmes holding her husbands hand as she left the courthouse in San Jose moments ago. Assistant U.S. Attorney Robert Leach told the jury, This is a case about fraud, about lying and cheating to get money. The text messages also include Holmes and Balwani privately venting about health professionals from blood labs. We know, the record shows, that the misrepresentation, there were many. Prosecutors said Holmes' response included hiring private investigators to spy on ex-Theranos employee Erika Cheung and attempting to get Tyler Shultz, a onetime employee and the grandson of former Secretary of State George Shultz, to sign an affidavit affirming he never spoke to the Journal, as well as naming every employee he knew who spoke to the paper. The messages paint a picture of life for the couple: exchanges about meetings and staff attendance mix with flight details and updates on a pet fish and many expressions of love. During the questioning, some members of the the jury of eight men and four women looked uncomfortable, gazing tensely at images of the intimate text messages on screens in the jury box. they couldn't do that. Im Lizzie OLeary and youre listening to what next TBD, a show about technology, power and how the future will be determined. "Private security?" And Mr. Downey suggests she did not go to that, it came to her. Stanford Dropout. Ten minutes later, Holmes texted again: "No response?" In a 2014 text message,. "You live in my eyes. S1: Im really struck by the fact that all of these board members and investors, many of them never had to pay the piper or own up for for their part in promoting Elizabeth Holmes and her lies. Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. He represents many who find themselves disproportionately insinuated into the criminal justice system because of poverty, lack of education, opportunity for family support, and his work exposes the inequities of the treatment of many in our criminal justice system. 'Keep Fighting': More Texts Between Elizabeth Holmes, Ramesh Balwani The court imposes this sentence after consulting the United States sentencing guidelines and in light of the statutory concerns expressed in 18 United States code section 3553(a). (Cheung would later testify that the number was even lower: around 12.) Sherry, I accurate the woman I mentioned. Holmes did not disagree. Even in the Sesi depositions, she only admits to mistakes and not knowing things. "Sunny Balwani: "We need to stay focused and vigilant. We know this local history. I read an article just the other day, and Ive heard this from a handful of female founders who say they have struggled in the wake of Elizabeth Holmes to raise money from the venture community, because there are people in that community who look at Elizabeth Holmes and say, well, are you the next Elizabeth Holmes? S2: If Elizabeth was able to convince, as she did investors, former secretaries of state, entire groups of people, auditoriums filled with people, if she was able to convince so many of her vision already, why is it improbable that she would be able to convince 12 jurors. Juries are far less likely to buy into the idea of insanity or somebody doing something not in their right mind, particularly when its a series of events over the course of many years versus a, you know, a one time breaking point. TBD is part of a larger what next family. Ill be sticking to the law from here on out, thank you very much. There is breaks that will be set up. What next? S4: At 19 years old, Elizabeth Holmes dropped out of Stanford. hide caption. Elizabeth Holmes told the jury in her criminal fraud trial on Tuesday that she personally put the letterhead of pharma giants Pfizer and Schering-Plough on documents sent to potential business . As though that would only fit one gender. @kron4news (Getty Images photo) pic.twitter.com/ZUqeTjU4gd. They lied to investors, they knowingly gave people inaccurate medical tests, and now she's on trial for massive fraud. Text messages made public record recently by prosecutors expose private exchanges between the two executives from 2015, a time when their biotech company, Theranos, was coming under fire from whistleblowers and medical professionals. The government released the messages in anticipation that Holmes would try to blame Balwani for mismanagement of the company. She had recovered. / Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily. They have all of her text messages. It was given to them. And Mr. Downey tells us this was not a pursuit of money. A Division of NBCUniversal. 'Total Confidence In Myself': What We Learned From Elizabeth Holmes In his opening statement, Holmes attorney, Lance Wade, told the jury that she was recruiting the best businessman she knew when she hired Balwani, but now realizes it was a mistake. This case is so troubling on so many, so many levels. Do you think that the Silicon Valley has learned anything about kind of what role investors and sort of professional board member class plays in in things like this? S2: And then shortly after that pitch, Elizabeth started showing up in all of these places and was very much a celebrity. If very high-profile public trials like this one can be a deterrent against other people committing crimes like the ones Holmes is accused of, this one is working. 2023 Vox Media, LLC. On cross examination by prosecutors on Tuesday, Holmes recollection became murkier. But as all things do, times change. The employee recalled that time period as an incredibly difficult one at the company with high-profile exits including the sudden departure of lab director Adam Rosendorff. People like breast cancer survivor Sherry Acker. Do you think thats fair? The private messages, nearly 600 pages' worth, span from June 2011 to July 2016. The text messages were released by prosecutors in her trial Tuesday. This morning prosecutors asked the judge to grant her immunity to protect her against self incrimination while testifying. Maya Angelou," Holmes said in an April 2016 text. The court will ask that the parties meet and confer regarding a restitution hearing date that we will set in the future. "There was no way I could save our company if he was there," Holmes said Tuesday. I can confidently say that Ive never told someone that theyre the breeze in the desert, but my text history is still embarrassing as hell. Holmes was then shown an email from former Wells Fargo CEO Richard Kovacevich, who was an investor and board member of Theranos, asking about exactly how many tests are being performed on the company's Edison compared to conventional lab equipment. The scheme brought her fame, it brought her honor and it brought her adoration, Leach added. The court will adopt the recommendations of supervised release as indicated in the PSR. 2023 Grubhub, DoorDash, Uber Eats sue NYC over restaurant fee c Real Estate Board of New York to release key office occupancy data, Why the stock market is smarter than any of us including the bears, Clueless Yellen fails to stave off bank crisis as First Republic sinks, Twitter co-founder Jack Dorsey said company 'went south' after Elon Musk took over, Al Sharpton puts McDonald's 'on notice' over alleged racial discrimination, Gayle King says she doesnt have a desire to retire: I want more work, WNBA star Brittney Griner is heading to the Met Gala, Mariah Carey celebrates Moroccan and Monroes 12th birthday: My babies, NY Post Sports Reporter Zach Braziller breaks down the Knicks game 1 loss to the Heat, Kendall Jenner rocks sheer top, fur mini skirt for date night with Bad Bunny, Georgia player under fire after racist remark during 2023 NFL Draft on livestream. I was thinking today. Ahead of Ms. Holmess trial on fraud and conspiracy charges, federal prosecutors on Tuesday filed six pages of text messages that the two executives, who are no longer a couple, exchanged in 2015. Will nail this m****r f****r., Holmes wrote, If Tyler thinking abt George fyi at right time. We know that this valley at one time from the rich earth here supported the world. Other messages, sent after Balwani's departure from the company in May 2016, show Balwani giving Holmes a pep talk on keeping Theranos alive amid scrutiny from federal regulators and the media. They also reveal that Holmes told Balwani about courting high-profile investors who ended up giving Theranos hundreds of millions of dollars. No exotic automobiles or lavish lifestyle, just a desire to create for society's benefit through honest hard work, and that I would hope would be the continuing story, the legacy and practice of Silicon Valley. So we will do it. His board salary would've been $150,000 a year. Balwani will face a separate trial next year. She had creative ideas. I think that the PSR [presentence report] had to be corrected as to the age. S2: Look, its hard to fully be inside of her head, but I do think that we are so frequently taught the myth of Steve Jobs. The prosecution's cross-examination of Holmes is scheduled to resume on Wednesday. We are lazy and disorganized. That same month, Holmes texted Balwani: "Just finished calls. So how many people do you report on who you said were? Prosecutors said the texts support their argument that Balwanis statements to federal regulators about his responsibilities at Theranos are untrustworthybecause they may been colored by his affection for Holmes. So investors, sophisticated investors, it's all right to invest and lose money, that's the expectation, but the public and sophisticated investors that make those investments, they take those risks. The texts are from around the time of Balwani's departure from Theranos as president and COO. And Ocean, the texts continued. She was the financial manager of Theranos. "We totally messed it up.". 0:00/33:09-33:09. . She surrounded herself with people who were very powerful, but not necessarily people who were attuned to the work that she was specifically doing. Thats the same day. Mine is full of bad tweets and shit talking and screenshots that should never, ever see the light of day. Balwani: I know what you are thinking and going thru. Privately, things were falling apart. ", In a series of text messages also from April 2015, Balwani seems to acknowledge the poorly timed trip. But what the government has to prove now in the criminal case is that Holmes wasnt just a true believer with bad luck, but someone who intended to deceive investors and patients. SEC.gov | elizabeth-holmes-transcript-2017 ELIZABETH HOLMES TRIAL: I'm at the courthouse where Holmes' trial will resume this morning with more testimony from the prosecution's first witness, So Han Spivey. So who will the jury see a trial? S1: Rebecca Jarvis spent years covering homes and made an investigative podcast about her called The Dropout. Elizabeth Holmes has said Ramesh Balwani, her ex and Theranos' former president and COO, abused her. . Breathe and in every hour be conscious of your breath and breath out fear. So the defense will argue this is all anecdotal. There was significant evidence about manipulation and untruths that were being used in the negotiation of the business. "Your presence on earth is proof of God's presence. In a 2014 text message, Holmes wrote to Balwani: "total confidence in myself best business person of the year. However, if it was revealed to them what this jury heard and of the conduct that was engaged in, I am quite confident they would not, they would not condone that. Holmes faces the maximum possible penalty of 20 years in prison, but, if convicted, would likely receive far less time. That might work, S1: that the investors are sophisticated people like they should. S2: The defense has filed a number of of documents to this effect that there could be a conversation around a mental disease or defect. We're grateful for that technology that comes forward, and the world relies on it. According to a source who worked at Theranos and was aware of the trip, the group was planning a weekend getaway. Theranos Inc.founder Elizabeth Holmess sometimes banal, sometimes cringeworthy text messages with former president Ramesh Sunny Balwani have been released as an exhibit in her criminal fraud trial. Have a great weekend and thanks for listening. In their opening statements on Wednesday, prosecutors said Holmes lied and cheated her way to fortune and fame as she duped investors and patients alike. "You have my love in every breath. S2: part of it. Was it hubris? S1: When we come back, the Elizabeth Holmes of 2021 isnt the same person she was just three years ago. Leach then displayed an email from September 2016 in which Holmes wrote to Rupert Murdoch, who owns the Journal and who invested more than $100 million into Theranos, hoping he would intervene to shut down Carreyrou's reporting. Meeker did not respond to CNBC's request for comment. Murdoch invested $125 million in the company. S4: A health care pioneer is being compared to visionaries like Bill Gates and Steve Jobs this morning. The industry that we know of here regrettably finds vectors with the financial and personal gain that clouds sometimes the good judgment of individuals, and we see that. Mattis said he invested $85,000 into the company and was granted Theranos stock options. Need to get ahead of all of it., Balwani responded, So easy to knock legs off of.. She had three former cabinet secretaries on her board. S1: She checked it out, but couldnt get anyone to independently verify that these Theranos blood tests, which only used a finger prick and not a traditional vein stick, were actually going to be better and cheaper. Well get them, Holmes responded. They did not say, well, it's okay, fraud is okay, And that's part of failure. This idea of her lifestyle, which, again, is something her attorneys fought very hard to keep out of the courtroom. Elizabeth Holmes' private text messages made public by - YouTube Was it removed by Holmes, Leach asked? At the end of the day, though, and I have talked to a lot of legal experts on this. And it's clear from her comments that that spirit, her desire to produce, to make her company successful, perhaps, is what caused her to, as she told us just a moment ago, make certain mistakes. Text Messages Offer Close-Up View of Holmes-Balwani Relationship - WSJ Update October 4th, 3:53PM ET: Updated to add additional texts. They should take those risks free from lies and misrepresentation. Northern District of California | U.S. v. Elizabeth Holmes, et al. The two had a 12-year relationship, and whenHolmes took the stand for a fourth day on Monday she testified thatBalwani inflicted sexual and emotional abuse on her for a decade. Both Holmes and Balwani have pleaded not guilty to two counts of conspiracy to commit wire fraud and 10 counts of wire fraud. S2: Well, I think, look, every any PR person that youre going to talk to you is going to tell you to stay on message. Millions of people got these tests. The filing includes texts Ms. Holmes sent Mr. Balwani in May of that year saying, "Madly in love with you and your strength," "You are breeze in desert for me" and "Feel like luckiest person in world BC I have you.". In a group text from April 2015, Holmes' brother, Christian, messaged her and Balwani about an upcoming trip to Las Vegas: "Not sure if these are options but from dan : presidential suite at four seasons $3k,mandarin apex suite view of strip $3400 or presidential $15k, or encore junior suite $700 view of golf course.". Read the Tense Texts Between Elizabeth Holmes and Her Ex - Business Insider A few minutes later in the same text chain Holmes messaged Balwani: "Rupert over 100," referring to media mogul Rupert Murdoch who is among the high-profile investors in Theranos. Scott Budman reports from San Jose. They shed light on their past relationship and efforts to keep Theranos afloat amid scrutiny. Now, perhaps that is the cautionary tale that will go forward from this case. And then maybe theres the idea that people came down harder on her because shes a young woman. I also think that. S1: The defense is sort of multipronged, but really central to it is this issue of a missing database. She got into that world. All Rights Reserved. In their opening statement, Holmes defense team painted her as an innocent businesswoman whose company failed, and they reminded the jury that she did not run Theranos alone.
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