Former Theranos founder and CEO Elizabeth Holmes leaves the Robert F. Peckham Federal Building with her partner Billy Evans. Two individuals put their minds together and they created something, they developed some industry and put their hard work to task and created innovation, and that changed this valley forever. The new season of her podcast, The Dropout, starts on August 31st. She faces up to 20 years in prison and has pleaded not guilty. transcript. "Infinite love for you in every breath," Balwani told Holmes later that month. CNBC has obtained nearly 600 pages of private text and Skype messages between former Theranos CEO Elizabeth Holmes and her then-boyfriend Sunny Balwani. This precocity was a key part of her public image. "Very good :)" Holmes said, adding "He would have met longer.". We want to hear from you. Murdoch invested $125 million in the company. One of the claims in the Journal report was that of the 240 blood tests Theranos offered, just about 15 were being processed using the company's proprietary device known as the Edison. And then maybe theres the idea that people came down harder on her because shes a young woman. 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. The first three weeks of Elizabeth Holmes' criminal trial have seen the publication of scores of private text messages between the former Theranos CEO and her second-in-command, Ramesh. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. In a 2014 text message, Holmes wrote to Balwani: "total confidence in myself best business person of the year. The government says we never actually got access to it. Revealing these text messages was part of the prosecution's . Elizabeth Holmes, founder of failed blood-testing startup Theranos, was found guilty on four of 11 criminal-fraud charges. The letters referenced by venture capitalists and others who mentioned innovation and they talk about the VC world and those types of things. Inside the courtroom of Theranos' Elizabeth Holmes trial. Murdoch declined. So we will do it. That her breast cancer has returned. 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. Read the full text of the newly released text messages between Elizabeth Holmes and Sunny Balwani starting on page 10 here. S2: Yeah, I think its incredibly complicated. About The SEC. 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? @kron4news (Getty Images photo) pic.twitter.com/ZUqeTjU4gd. That turned out to be an ominous prediction given that Theranos shut down in 2018 and the pair are now accused of orchestrating a multimillion-dollar scheme to mislead investors and patients about Theranos. They also reveal that Holmes told Balwani about courting high-profile investors who ended up giving Theranos hundreds of millions of dollars. Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. One thing that was missing from those letters was and I didn't see it, they talked about, well, in the industry in this valley failure is quite normal. 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 court will adopt the recommendations of supervised release as indicated in the PSR. That is our show for today. Theyre great, theyre brilliant. The two also seemed to share a pet. ), but we all also dont need a full courtroom to know. It doesnt live up to what it would take for me to even consider covering it as a solution. Cracking a smile at the question, Holmes replied: "No.". Oakland Bike Shop Offers Free E-Bike Test Rides, French Bulldog Stolen From Car in Oakland, This 28-Year-Old Pays $62 a Month to Live in a Dumpster He Built for $5,000Take a Look Inside, 4 Stabbed, 1 in Critical Condition Following Fight in San Jose: Police, Steph Curry's 50-Point Game 7 Explosion Vs. Kings Lights Up NBA Twitter. So who will the jury see a trial? 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. Distribution and use of this material are governed by 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. Put your money with them. 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. Other passionate texts read, Madly in love with you and your strength and Feel like the luckiest person in world BC I have you.. Balwani said. . Spivey was Theranos financial manager. "Ditto times a million," Holmes replied. The scheme brought her fame, it brought her honor, and it brought her adoration, Leach told the jury. Elizabeth Holmes Transcript. Spivey testified that Theranos was hemorrhaging money at a time when Holmes was portraying herself as a successful CEO to investors. "We were very worried about Mr. Carreyrou's story," Holmes testified, saying earlier that protecting trade secrets was the main concern. Balwani was both COO of Theranos and Holmes boyfriend. Alice Walton in for 50. What next? Plan, focus, stay organized and stay in control. Im Lizzie OLeary and youre listening to what next TBD, a show about technology, power and how the future will be determined. But the guys bought everything non refundable. Balwani will face a separate trial next year. Since then, Holmes has settled separate civil fraud charges with the Securities and Exchange Commission without admitting guilt. I am a Dropout of Stanford, one of the best universities in the country. Mr. Balwani's attorney has denied any allegations of abuse. And what kind of shape jury deliberations take may hinge on just how credible Holmes comes across from the witness stand. Many of Holmess lies are documented, but Rebecca says that doesnt mean its a guaranteed victory. After her dramatic rise as fall as a young Silicon Valley CEO, Holmes walked away with nothing, her defense attorney told the jury. 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 its mostly taking the fifth. Jurors on Wednesday began to hear a series of text messages sent between Elizabeth Holmes and Ramesh "Sunny" Balwani, offered with no context but most appearing to show instances when Ms. Holmes . She said the abuse occurred during the time in which prosecutors allege she and Balwani lied to investors and duped patients and doctors about Theranos, which Holmes, now 37, founded as a 19 year old. 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 . Balwani: My family sends love and prayers and u have prayers of thousands and thousands of people u have sever. And they were moving. These pictures that are in my courtroom express some of that. Stay strong and focus on building business and turning the negative around thru science and publications and submissions," Balwani said in June 2016. Need to get ahead of all of it., Balwani responded, So easy to knock legs off of.. Back to The Daily. "There was no way I could save our company if he was there," Holmes said Tuesday. I've read her background. But then I don't want distractions until we win. Theranos imploded after investigative stories bythe Wall Street Journal were published in 2015. She is apparently referring to Alice Walton of Walmart fame. Many of the letter writers weren't at the trial I don't believe, but they spoke to a different individual and their experiences. How do we keep that going? Balwani: Missing u in every breath and in every cell. S2: OK, so theres this database that includes results of Theranos tests, millions of them over the course of a handful of years. Plan, focus, stay organized and stay in control. CNBC has obtained nearly 600 pages of private text and Skype messages between former Theranos CEO Elizabeth Holmes and her then-boyfriend Sunny Balwani. On Tuesday, federal prosecutors had their first chance to directly question Holmes and offered another theory of the case: that Holmes was engrossed with the innerworkings of the company as chief executive when it was engaged in fraud and that her relationship with Balwani, who faces a separate trial, was more romantic than Holmes' portrayal. Copyright 2023 Nexstar Media Inc. All rights reserved. She had a little tuition money and a big idea. And if she doesnt, then its just like game on for whatever you want to do. We know one one thing that we will see a trial is that we will see a recent mom, new mom. This is a case about fraud about lying and cheating to get money, Robert Leach, a member of the prosecution team, told jurors at the start of his opening statement. Justin Sullivan/Getty Images (Balwani). A criminal fraud trial for Silicon Valleys former golden girl is underway. The file never worked. pdf elizabeth-holmes-transcript-2017_0.pdf (88.43 MB) Modified: July 21, 2022 STAY CONNECTED 1 Twitter 2 Facebook 3 RSS 4 YouTube 6 LinkedIn 8 Email Updates. S4: A health care pioneer is being compared to visionaries like Bill Gates and Steve Jobs this morning. I wonder, as we prepare for the trial, what that behavior might tell you about her and how she is going to come into this trial. My water. Is it the inability or the refusal to accept responsibility or express contrition in any way? The story of Elizabeth Holmes and Theranos is an unbelievable tale of ambition and fame gone terribly wrong. 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. Theranos founder Elizabeth Holmes reportedly sent a text to her ex-boyfriend and former COO referring to herself as 'best business person of the year' Sarah Jackson Sep 23, 2021, 10:33 AM. The private messages, nearly 600 pages' worth, span from June 2011 to July 2016. The trials outcome hinges on proving Holmes intentions, showing what Holmes knew, and pinpointing when she knew it, Hagan said. Its not for any noble reason I dont have any new sense of morality or sudden desire to be a very good person. Group, a Graham Holdings Company. "I love this," Holmes responded. S1: So Rebecca didnt do a story, but other reporters did. Was it intoxication with the fame that comes with being a young entrepreneur? 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. "'In all the world, there is no heart for me like yours. Leach asked of the trove of messages prosecutors subpoenaed as part of the investigation. Holmes and Balwani each face 10 counts of wire fraud and two counts of conspiracy to commit wire fraud. "My whole foundation, life, what I believed in, devotion to the company, was based on believing he was this person," Holmes said of Balwani, her ex-boyfriend and business partner of the now-collapsed blood-testing startup Theranos. In email exchanges, text messages and board presentations, the prosecution paints a . "Missing my heartbeat," Balwani wrote in April 2016. All Rights Reserved. S4: At 19 years old, Elizabeth Holmes dropped out of Stanford. 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. Bad timing. S2: at a very young age, decided that she wanted to change the world. The court will impose a period of supervised release of three years as to each count. 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. I dont know. He is the grandson of George Shultz, a former secretary of state who served on Theranos board. I was thinking today. I am going to be very, very good. 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 jury found Holmes guilty of defrauding investors at her blood-testing company. The text messages were released by prosecutors in her trial Tuesday. She did enrich herself and she did live a really good life on the idea that the technology worked. At the end of the day, though, and I have talked to a lot of legal experts on this. She went out, got a Theranos test. And that claim was settled out of court. Now, at 31, shes what lots of teenagers with that background likely strive to become the youngest billionaire in the world. That is very useful to the governments case that at least that this company wasnt doing what they said that they were supposed to be doing. 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. You are breeze in desert for me, read one message to her then-boyfriend and Theranos COO Ramesh Sunny Balwani back in May 2015. So the Page Mill Road where we see a lot of innovation, Sand Hill Road, the valleys here, they changed, those farms are gone, and in their place are the titans of industry that have developed from that small garage. Theranos founder Elizabeth Holmes and the companys president Ramesh Sunny Balwani exchanged intimate text messages that offer a rare look inside their once-secret romantic relationship. She faces up to 20 years in prison and has pleaded not guilty. Prosecutors likely made the text messages public mid-trial in an attempt to prove that Holmes and Balwani conspired together, said former San Francisco deputy district attorney Michele Hagan. There is breaks that will be set up. S1: this week on the show? News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. Best gifts for the graduate with travel plans, CHP responds to suspicious activity at Carquinez, Man charged for allegedly possessing enough fentanyl, 13 arrested, stole millions from low-income SoCal, BestReviews.com - Top gifts to make everyone happy this spring, Mothers Day inspo: This foot massager has 20,000, Drew Barrymores Walmart collection is perfect for, Best Mothers Day gifts for the budding plant mom, Best Mothers Day Gifts for moms obsessed with books, Do Not Sell or Share My Personal Information. She dropped out of Stanford at 19 and started Theranos with a promise that her machines could shake up an industry that hadnt changed in decades. S1: What matters is if you go back and listen to the narratives that Holmes and the company were putting forward in 2013, 2014, shes saying the same thing over and over again. And she will also have three individuals in the courtroom with her family and or friends who will be at her side. Thousands were released by the. Balwani: I know things are tough but dont give up on your dreams. The Elizabeth Holmes trial has made me more determined than ever to avoid doing crimes. "And so, that was it.". Do you think thats fair? From our neighbors south, and individuals who have held land from Spanish land grants, they farmed this land, they farmed this rich land, and they produced them, this was the center for the world, this agriculture. You can find all of the newly released texts here. And that's the troubling part of this. Holmes is currently on trial and accused of defrauding Theranos Inc investors of hundreds of millions of dollars. Holmes' direct examination by her lawyer concluded on Monday . And Mr. Downey tells us this was not a pursuit of money. And she created this and immersed herself forward.People gravitated towards her idea. Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily. 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. She had creative ideas. In another exchange, Balwani said "Got table at XS dance [floor]." The letters that were referenced, I've read them, they were meaningful. Balwani responded, "Awesome. This was not a pursuit of it's not like other wire fraud cases where an individual sought riches to buy yachts, cars,and all of those things, and to live a lavish lifestyle. It was sent to Walgreens. "You have my love in every breath. hide caption. our Subscriber Agreement and by copyright law. alleging the pair were in an abusive relationship. This area no longer produced the strawberries, the apricots, the cherries, the artichokes, and the tomatoes that it once did in that great abundance, but rather the technology changed, didn't it? "There are many things I wish I did differently," Holmes told the jury. Trial hinges on how she is painted in courtroom, Elizabeth Holmes trial to dissect downfall of a tech star, Where is Elizabeth Holmes? Thanks for contacting us. You'll recall the wonderful innovation of those two individuals in that small garage in Palo Alto. One person who has a plan and executes can defeat an army. knocking the legs off one at a time is the best way, Balwani wrote. This copy is for your personal, non-commercial use only. 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). 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. 2023 . 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. 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. By clicking Sign Up, you also agree to marketing emails from both Insider and Morning Brew; and you accept Insiders. When they created, those two individuals, they created what they did, and they also, in creating their company, they also created an ethos and they created a way of conducting their business creating what they do, treating their employees and their business partners in a way that sought to continue innovation, to produce innovation recognizing that this area would soon be the crucible for innovation around the world as it is today. Sherry, I accurate the woman I mentioned. 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. S5: Whenever there is a quote unquote glass ceiling, theres an iron woman right behind it. Ex-Theranos employee Tyler Shultz was a whistleblower. It might seem like a slam dunk case for the prosecution. She surrounded herself with people who were very powerful, but not necessarily people who were attuned to the work that she was specifically doing. 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. And that these were early stage investments and they should have had a better sense of things. But as all things do, times change. 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. 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. Whether its a short vacation or theyre jetting off to begin their career, show the future traveler you care with a meaningful graduation gift. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. Holmes and Balwani were working together, and worrying together, about their machines including one dubbed "Edison. And I feel like in that way, maybe this this timing maybe is not great for her. We're grateful for that technology that comes forward, and the world relies on it. Once the company was dissolved, wiped its servers, the database is gone. Breathe and in every hour be conscious of your breath and breath out fear. Holmes did not disagree. "You live in my eyes. I mean, I wonder. Sign up for notifications from Insider! She had become, as she sought, one of the most celebrated CEOs in Silicon Valley and the world, Leach said. 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 . 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.". When Elizabeth Holmes and Ramesh "Sunny" Balwani split, her life was shattered. These Theranos tests and what if in the time of Covid there was something like that that existed, like what if we were fully misinformed about health care and our health care decisions based on faulty information? Copyright 2023 NBCUniversal Media, LLC. The Slate Group LLC. How do I keep bugs off my patio this spring? There was one letter I wrote the quote down. My water. 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. S2: Hey, theres this blood testing company, Theranos, and they can save your viewers a lot of money. 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.' S1: said, no, I dont know. Problems inside Theranos were first revealed in October 2015 by then Wall Street Journal reporter John Carreyrou. Greg's identity is not clear. "Would it surprise you to know that the word 'love' appears in the texts 594 times?" Leach asked Holmes about trying to shake down Theranos whistleblowers suspected to have worked with Carreyrou in exposing the company. Jury selection begins in the Holmes trial and opening arguments are set for September 8th. Leach asked Holmes, and she agreed. Who made a decision to drop out of school, left school with a minimal amount of education and minimal amount of background. TBD is part of a larger what next family. Even in the Sesi depositions, she only admits to mistakes and not knowing things. I see you everywhere. Legal experts say Spivey is establishing a motive. ", Referring to their investors, Balwani wrote, "They are not investing in our company they are investing in our destiny.. As though that would only fit one gender. ", In a series of text messages also from April 2015, Balwani seems to acknowledge the poorly timed trip. And if I had, Id sooner die than let into the public record. One thing that the letters omit, though, they did not say, they did not say anything about, nor did they endorse, failure by fraud. 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. She had recovered. Access your favorite topics in a personalized feed while you're on the go. I read something that suggests Walgreens had the opportunity to test it. There are 11 patients whose experiences youll be hearing about in the courtroom. For her part, Holmess responses are often short. Isnt everyones? "-Likely refering to Journal reporter @JohnCarreyrou. Down to 5 people. Balwani responded by simply writing, "OK.". I think that the PSR [presentence report] had to be corrected as to the age. Others were much more personal. So we will do it. 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. Trying your hardest and coming up short is not a crime, defense attorney Lance Wade told the jury. The court has recognized that the sentence needs to be imposed to reflect the seriousness of the offense and to promote respect for the law and to provide just punishment for the offense, to afford adequate deterrence in criminal conduct. 2023 Vox Media, LLC. Keep focused and keep fighting. They heard, saw the texts, the chain, the messages, the collaboration, if you will, between the co-defendants, and they saw that. She got into that world. She wants to democratize health care. To be clear, plenty of the missives included in the trial are things the prosecution might be able to use to try and prove she was guilty. S1: Back in 2013, ABC News correspondent Rebecca Jarvis was working on a story about high medical costs. Theranos founder and CEO, billionaire superstar and media darling. Elizabeth Holmes on trial. Holmes replied. S3: Otherwise, Theranos founder, Elizabeth Holmes, has now officially been indicted on federal wire fraud charges. Holmes faces the maximum possible penalty of 20 years in prison, but, if convicted, would likely receive far less time. During opening statements last week, her defense team told the jury that Holmes was on a quest to revolutionize healthcare. "Ultimately, all roads lead to the CEO?" They shed light on their past relationship and efforts to keep Theranos afloat amid scrutiny. "I know things are tough but don't give up on your dreams. S1: Elizabeth was Elizabeth Holmes. Balwani wrote to Holmes, I am narrowing this down in CLIA. Here is Elizabeth Holmes holding her husbands hand as she left the courthouse in San Jose moments ago. hide caption. But those texts don't indicate that.". But it all began to unravel in 2015 when The Wall Street Journal reported that the Theranos machines didnt work like they were supposed to, and the company was secretly using commercial machines to test patient samples, while Holmes and her CEO and lover Sonny Bill Bellone, were publicly touting the companys success and profitability. Balwani texted that he "didn't have to meet with someone who was attacking me.". Holmes appeared expressionless from the witness stand. The government released the messages in anticipation that Holmes would try to blame Balwani for mismanagement of the company.
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