The prosecution sought to emphasize in Holmes' fifth day of testimony that her attempts since the start of the trial to shift blame on Balwani and other Theranos employees is not a sufficient defense, since she was the company's chief executive. U.S. District Judge for the Northern District of California Edward Davila sentenced former Theranos CEO Elizabeth Holmes to 11 years in prison last week following a four-month trial in which a. What was the elevator pitch for Theranos and why do you think it was so appealing? In San Francisco, apparently, Theranos CEO Elizabeth Holmes charged with criminal fraud, Surprise your mom with one of these Mothers Day. U.S. District Judge Edward J. Davila, left, sits with U.S. Supreme Court Associate Justice Anthony M. Kennedy at a panel discussion in 2018. S1: But that doesnt seem to have changed. Stanford Dropout. S1: this week on the show? She raised almost a billion dollars in capital. And a few minutes later, Balwani told Holmes "Getting private security for u". Text evidence in Holmes' fraud trial shows proclamations of love but also tensions. A Division of NBCUniversal. #Update: General James Mattis says he joined the Board, and invested $85,000 into #Theranos, calling it a significant amount of money for "someone who has been in the government for 40 years.". I am going to be very, very good. Prosecutors just released text messages . Do you think thats fair? I think that the PSR [presentence report] had to be corrected as to the age. Stay strong and focus on building business and turning the negative around thru science and publications and submissions," Balwani said in June 2016. Holmes trial resumed Tuesday with more testimony from prosecutors first witness, So Han Spivey. And that's the issue of funding for business that we see. Copyright 2023 NBCUniversal Media, LLC. . Why does it matter? Here is Elizabeth Holmes holding her husbands hand as she left the courthouse in San Jose moments ago. Pray we get time of joy and happiness and carefreeness like birds soon," Balwani told Holmes in a couple of texts in April 2016. And perhaps that's the real pity of it. Disgraced Theranos founder Elizabeth Holmes said she had "total confidence in myself best businessperson of the year" in text messages to her former boyfriend and business partner Ramesh . He said he was impressed by Holmes and hoped to use Theranos machines in the field of battle on soldiers, but was ultimately disappointed that he was not allowed to test the machines. S2: The case with the investors is an easier one for Elizabeth, because this idea of Silicon Valley puffery fake it till you make it. 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.". 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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. "You are the breeze in the desert for me," Holmes once texted Balwani, according to a tweet from NBC Bay Areaa journalist Scott Budman. There was significant evidence about manipulation and untruths that were being used in the negotiation of the business. They heard, saw the texts, the chain, the messages, the collaboration, if you will, between the co-defendants, and they saw that. So the defense will argue this is all anecdotal. It was given to them. When Elizabeth Holmes was nine, she wrote a letter to her father saying she wanted to discover something new that mankind didnt know was possible. The scheme brought her fame, it brought her honor, and it brought her adoration, Leach told the jury. Leach asked of the trove of messages prosecutors subpoenaed as part of the investigation. S1: said, no, I dont know. Dramatic Messages Revealed During Elizabeth Holmes' Trial The court is not going to impose a fine in this matter. I asked a friend what she would do if that happened to her. It's the history of this area. S1: When we come back, the Elizabeth Holmes of 2021 isnt the same person she was just three years ago. Read the Tense Texts Between Elizabeth Holmes and Her Ex - Business Insider You will learn that Mr. Balwani did not take well to people who disagreed with him,Wade said. Holmes just had everything dumped on the internet for anyone to see. She was the financial manager of Theranos. The government's potential exhibit list runs nearly 240 pages and mentions correspondence between Holmes and Kissinger, emails from Murdoch to Holmes, and text messages between Holmes and Balwani. She had creative ideas. And that claim was settled out of court. (Stephen Lam/Reuters). A criminal fraud trial for Silicon Valleys former golden girl is underway. And I think in the last year and a half Ive thought so much about. And then maybe theres the idea that people came down harder on her because shes a young woman. This idea of her lifestyle, which, again, is something her attorneys fought very hard to keep out of the courtroom. "We were very worried about Mr. Carreyrou's story," Holmes testified, saying earlier that protecting trade secrets was the main concern. On the 2015 interview, Holmes said told Cramer: "Every test that we offer in our lab can be run on our proprietary devices.". This precocity was a key part of her public image. In some of the more uncomfortable moments of the day's testimony, Assistant U.S. Attorney Robert Leach made Holmes read cloying text messages with Balwani where she called him "my tiger" and Balwani wrote "I worship you.". Elizabeth Holmes was CEO of Theranos. Elizabeth Holmes private text messages leak during Theranos - CNBC "Ditto times a million," Holmes replied. Revealing these text messages was part of the prosecution's efforts to show that Holmes knew what was going on at Theranos even as things were falling apart. Prosecutors said when Holmes was faced with failure and her company was in danger of going broke, she chose to lie and deceive investors to keep her company from falling apart. Justin Sullivan/Getty Images (Balwani). The government says we never actually got access to it. Poor operations in the lab was one of Theranos biggest failures, but it wasnt fraud., In the filings that were unsealed over the weekend, Holmes attorneys hammeredBalwani, as they likely will throughout the trial, saying that hecontrolled what [Holmes] ate, how she dressed, and how much money she could spend, who she could interact with essentially dominating her and erasing her capacity to make decisions., Holmes attorneys said in filings that Balwani controlled what [Holmes] ate, how she dressed, and how much money she could spend, who she could interact with essentially dominating her and erasing her capacity to make decisions., The attorneys added that he also restricted Holmes sleep, monitored her movements and insisted that any success she achieved was because of him., The relationship amounted to intimate partner abuse, the attorneys wrote, adding that Holmes is likely to testify herself to the reasons why she believed, relied on and deferred to Mr. Balwani.. And I know about all of the good things that the individuals said about Ms. Holmes, and I respect that, and it's to the court. She is famous in the tech industry for her annual Internet Trends report, a presentation of dozens of slides covering the hottest trends for investors. History of Curry vs. LeBron in playoffs: Who has, VIDEO: French bulldog stolen in Oakland smash-and-grab, Mountain View police arrest man in stabbing at park, 1 killed, 1 injured in Fremont motorcycle versus, Warriors vs. Lakers playoffs: Start times, TV schedule, Curry drops 50 as Warriors win Game 7 vs. Kings, Celebrities spotted at Kings-Warriors Game 7, Two men charged for theft, burglary during NFL Draft, Read: Prosecutors release texts sent between Holmes and Balwani, Elizabeth Holmes: Villain or heroine? That's what provided and drove this area's economy. Tyler was booted from the company after he raised a red flag about blood tests failing quality-control standards. And Mr. Downey tells us this was not a pursuit of money. Ten minutes later, Holmes texted again: "No response?" Prosecutors in Elizabeth Holmes' fraud trial have released more text messages between the Theranos founder and Ramesh "Sunny" Balwani, her ex and the company's former president and COO, offering a . She uses ditto nine times in the texts that are part of the exhibit. They heard the evidence. I think the key question is, is Elizabeth herself going to testify at her trial? Prosecutors in Elizabeth Holmes' fraud trial have released more text messages between the Theranos founder and Ramesh "Sunny" Balwani, her ex and the company's former president and COO, offering a glimpse into their past romantic relationship and internal workings at the now-defunct blood-testing startup. The message to her then-boyfriend and Theranos President Balwani are among thousands of private texts and Skype messages obtained by CNBC that show Holmes had no lack of confidence in herself and Theranos, the blood-testing company she founded. In email exchanges, text messages and board presentations, the prosecution paints a . That is our show for today. Will nail this m****r f****r., Holmes wrote, If Tyler thinking abt George fyi at right time. They didn't talk about that, and I don't think that they could. Scott Budman reports from San Jose. Ex-Theranos CEO Elizabeth Holmes takes the witness stand in her - NPR Elizabeth Holmes, founder of failed blood-testing startup Theranos, was found guilty on four of 11 criminal-fraud charges. 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. The exchanges happened just as Holmes was facing questions from the Wall Street Journal, which was preparing an explosive story alleging that Theranos was overstating the capabilities of its technology. Keep focused and keep fighting. They weren't here. And Ocean, the texts continued. Dramatic text messages were front and center Wednesday on another day of the Elizabeth Holmes trial. Plan, focus, stay organized and stay in control. We dig into her story with one of the reporters who knows it best. They made their agreements, they exchanged business dealings, and I'm informed that more often than not those business dealings were sealed with a handshake, they were sealed with an eye-to-eye promise to perform, 'I'll bring this many bushels, tons of tomatoes, you will have strawberries, you will have cherries, you will have artichokes, you will have all of the riches that the earth below us in this wonderful, wonderful land produces.' They could have tested it. 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. SAN JOSE, Calif. (KRON) What did Elizabeth Holmes and Ramesh Sunny Balwani say to each other when they thought no one else was listening? They could be very useful because youd love to see if millions of tests were inaccurate, if a huge percentage of the tests based on these results were inaccurate. Elizabeth Holmes' trial begins with opening statements - CNN The two also seemed to share a pet. I'm a native. I was thinking today. "They don't show abuse or any kind of difficulty between the two of them," said Michele Hagan, a legal analyst and former prosecutor, of previously released texts between Holmes and Balwani. Read what a judge told Elizabeth Holmes before sending her to - NPR So we will do it. S1: Holmes promise to revolutionize blood testing. CNBC has obtained nearly 600 pages of private text and Skype messages between former Theranos CEO Elizabeth Holmes and her then-boyfriend Sunny Balwani. She got into that world. Following the publication of Carreyrou's story raising questions about the number of tests Theranos was able to perform and the accuracy of the company's technology, Holmes made a now-famous defiant appearance on CNBC's "Mad Money" with Jim Cramer. The court has reviewed those and finds that they are appropriate, and the court will order those. The texts are from around the time of Balwani's departure from Theranos as president and COO. I listened to your show. General Mattis said he left the Theranos board when former President Donald Trump nominated him for Defense Secretary. AMY OSBORNE/AFP via Getty Images. But the guys bought everything non refundable. So I was weeded out of many students. Elizabeth Holmes's reputation is disgraced, and her career is essentially over. I sought to change the world. After all, this is Elizabeth Holmes were talking about. A subreddit dedicated to conversation about Theranos, the healthcare company founded by Elizabeth Holmes in 2003. Elizabeth Holmes, the disgraced founder and former CEO of Theranos, is set to resume testifying Tuesday in her own criminal trial. Both Holmes and Balwani have pleaded not guilty to two counts of conspiracy to commit wire fraud and 10 counts of wire fraud. The Walton family eventually invested a total of $150 million in Theranos in 2014. U.S. District Judge Edward J. Davila, left, sits with U.S. Supreme Court Associate Justice Anthony M. Kennedy at a panel discussion in 2018. "You have my love in every breath. 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. Revealing these text messages was part of the prosecution's . And farmers, ranchers, they developed this land. 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. 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. The Slate Group LLC. Theranos founder and CEO, billionaire superstar and media darling. Hang myself I assume, she responded, in another dubious (and to be clear, exaggerated) entry into both of our iMessage histories. I dont know. In one text exchange, Theranos CEO and COO were trying to figure out which oftheiremployees was leaking information to theWall Street Journal. 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. Like when Balwani texted her in April 2015: The Vegas trip is such a distraction. Balwani's attorney, Jeffrey Coopersmith, declined to comment. S1: someone must have known that that these results were inaccurate if there were so many of them. I was I was pretty captivated by it. Al Jazeera Centre for Public Liberties & Human Rights. This copy is for your personal, non-commercial use only. We see stories of fraud in in both sets. Fawning text messages between Elizabeth Holmes, the disgraced founder of blood-testing startup Theranos, and her ex-boyfriend and former business partner have been revealed after the alleged fraudster accused him of psychological abuse. "People would just disappear and they were leaving without jobs, it was clear the company was grounded to a halt," the former Theranos employee said. @kron4news pic.twitter.com/aYrmEcwqdX. Filings unsealed last week and Holmes attorneys opening statement suggest she will try to defend her innocence by pinning the blame for the multi-billion dollar scam all on Balwani. Opening statements began in the closely watched . I've read her background. "'In all the world, there is no heart for me like yours. S2: and we featured a woman who was spending a lot of money on blood tests. What what is that? Theyre great, theyre brilliant. Have a great weekend and thanks for listening. Elizabeth Holmes Transcript. ", About 12,000 text messages sent between Holmes and former Theranos Executive Sunny Balwani were extracted from phones and computers, including one where Balwani referred to a Theranos lab, with an expletive, as a "disaster zone.". Sign up for free newsletters and get more CNBC delivered to your inbox. By clicking Sign Up, you also agree to marketing emails from both Insider and Morning Brew; and you accept Insiders. 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. And the jury heard at least the evidence, heard theevidence that the government put forward, statements from victims, statements from other individuals about representations that were made. Elizabeth Holmes is part of the New Time 100 list just out. Holmes and Balwani have both pleaded not guilty. The text messages obtained by CNBC show discussions about Carreyrou between Balwani and Holmes. Hmm. Inside the courtroom of Theranos' Elizabeth Holmes trial. Stay up to date with what you want to know. Other text messages showed Holmes expressed concern that a Wall Street Journal reporter was showing up to see the lab. In a 2014 text message,. I dont mean to be cynical, but I dont I dont get that impression, S1: but like maybe its not such a hard idea to be so fixated on on the idea of one mercurial. I don't think that they would, they would condone fraud. This material may not be published, broadcast, rewritten, or redistributed. A. Put your money with them. 'Total Confidence In Myself': What We Learned From Elizabeth Holmes Spivey testified that Theranos was hemorrhaging money at a time when Holmes was portraying herself as a successful CEO to investors. When the company started to be exposed, Elizabeth Holmes seemed seemed to double down. The new season of her podcast, The Dropout, starts on August 31st. Elizabeth Holmes' text messages to her former business - Reddit The private jets, the run ins with celebrity, with former presidents, the handbags, the makeup, the clothes, the shoes, all of these things which were a part of the benefits to her, to being the founder and CEO of the company. TBD is part of a larger what next family. People like breast cancer survivor Sherry Acker. Control your thoughts and dont let fear control you. Holmes' trial began last month. Its about the survivors of R. Kellys abuse and getting justice for them. Murdoch invested $125 million in the company. 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. S2: Ive thought a lot about that, too, and I agree with that. But the guys bought everything non refundable. In a 2014 text message, Holmes wrote to Balwani: "total confidence in myself best business person of the year. Sherry, I accurate the woman I mentioned. "Holmes (later): "WSJ guy might show up later. Transcript Enlarge this image Former Theranos founder and CEO Elizabeth Holmes leaves the Robert F. Peckham Federal Building with her partner Billy Evans. Theranos imploded after investigative stories bythe Wall Street Journal were published in 2015. Last Updated: .css-9d8khp-TimeTag{display:inline-block;}Feb. 25, 2022 at 7:41 PM EST, Former Theranos President Ramesh Balwani in 2019. The letters referenced by venture capitalists and others who mentioned innovation and they talk about the VC world and those types of things. So we will do it. NBC Bay Areas Raj Mathai speaks with Business and Tech Reporter Scott Budman and Criminal Defense Attorney Paula Canny about the latest in the Theranos trial -- text message revelations. S2: part of it. When pressed on another document from another drug company, GlaxoSmithKline, Leach asked Holmes if she had altered language on the report, and Holmes, again, testified that she did not recall. S2: Hey, theres this blood testing company, Theranos, and they can save your viewers a lot of money. The tragedy of this case is that Ms. Holmes is brilliant. The text could also be used as evidence in front of the jury. These are letters in support of Ms. Holmes. She has been subpoenaed to testify. Greg's identity is not clear. During opening statements last week, her defense team told the jury that Holmes was on a quest to revolutionize healthcare. TBD is produced by Ethan Brooks. What caused that? We dont know a lot about this approach yet, but court documents hint at it. AMY OSBORNE/AFP via Getty Images We are edited by Torie Bosch and Allison Benedict. The texts also show specifics about the high-flying lifestyle Holmes and Balwani led while Theranos was bleeding hundreds of millions of dollars, according to financial reports. Mr. Balwani's attorney has denied any allegations of abuse. You'll recall the wonderful innovation of those two individuals in that small garage in Palo Alto. S2: I would describe her as somebody who is incredibly ambitious. They heard the statements that were made to them. 2023 NYP Holdings, Inc. All Rights Reserved, Elizabeth Holmes avoids reporting to prison after last-minute appeal of judge ruling, Elizabeth Holmes asks judge to reduce 11-year sentence before heading to prison, Elizabeth Holmes must start 11-year prison term two months after giving birth despite appeal, Forbes mocked as another 30 Under 30 honoree joins the ranks of Elizabeth Holmes, SBF as fraudsters. S4: At 19 years old, Elizabeth Holmes dropped out of Stanford. Ex-Theranos employee Tyler Shultz was a whistleblower. The text messages and emails : Theranos - Reddit They dont think this makes or breaks the case. Elizabeth Holmes texts claiming she was 'best businessperson of the But your focus, attention, thoughts and breath is in your control," Balwani added in a series of messages also from June 2016. Even in the Sesi depositions, she only admits to mistakes and not knowing things. Balwani: I know what you are thinking and going thru. Alex Gallardo/AP "Ultimately, all roads lead to the CEO?" knocking the legs off one at a time is the best way, Balwani wrote. 2023 Vox Media, LLC. Having to minimize upcoming plans to make yourself seem hardworking? S2: OK, so theres this database that includes results of Theranos tests, millions of them over the course of a handful of years. She surrounded herself with people who were very powerful, but not necessarily people who were attuned to the work that she was specifically doing. For her part, Holmess responses are often short. The question is now, how is the jury going to respond to the evidence of individuals coming forward and saying, heres my story. S1: But the Theranos blood testing devices didnt work like they were supposed to. So which which Elizabeth are we going to see at trial? But what was it then? Alicia Montgomery is the executive producer for Slate Podcasts. The startup was once celebrated as a biotech breakthrough and made Holmes one of the world's youngest female billionaires before the company disintegrated in scandal. And Mr. Downey suggests she did not go to that, it came to her. 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? S4: A health care pioneer is being compared to visionaries like Bill Gates and Steve Jobs this morning. 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. 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. Beyond the love notes, there are also texts about seeking to silence medical professionals and Theranos employees who were raising red flags because Theranos mini blood testing devices were giving false test results. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower, Former Theranos CEO Elizabeth Holmes believed in herself so much that she wrote in a text message to Ramesh "Sunny" Balwani proclaiming that she had "total confidence in myself best business person of the year.". The text messages between Holmes and Ramesh 'Sunny' Balwani (above in 2019) may undermine her defense that she was a pawn manipulated by an abusive lover 'You are breeze in desert for me.