![]() “Because of his physical desk, he could tell you how they interacted with each other, whether they spoke with one voice,” Schenk said. He testified about what he observed in their working relationship. “She did not prepare this document that investor Lisa Peterson received (in October 2014.) Balwani told Peterson that Theranos would generate $140 million in revenue in 2014 and $1 billion in revenue in 2015,” Schenk said.ĭANIEL EDLIN: Daniel Edlin as a project manager whose desk at Theranos was right outside Holmes and Balwani’s offices. Edlin was one of Holmes’ brother’s college buddies. She testified that Holmes and Balwani showed investors revenue projections that did not match up with her data. SO HAN SPIVEY: Spivey was Theranos’ finance manager. “That was akin to hitting your head against a wall,” Schenk said. When Pandori announced that he was leaving the company, he was told to write his concerns in a memo. Pandori repeatedly raised his concerns about accuracy and reliability to Balwani, but “they were not well received,” prosecutors said. Decisions that should have been made by laboratory directors were instead dictated by what was best for the business. MARK PANDORI: Pandori was co-Theranos lab director with Adam Rosendorff “at an important time when Theranos went live with patient testing at Walgreens,” prosecutors said. She later went to the media and state health regulators to raise the alarm.ĭR. She raised her concerns directly to Balwani and quit after her concerns fell on deaf ears, Cheung testified. After spending time in the lab, she didn’t believe that Theranos machines generated accurate results. Her job was to process patients’ blood samples. Many of the same witnesses testified, including ex-Theranos lab directors, wealthy investors, doctors, patients, journalists, and whistle-blowers.ĮRIKA CHEUNG: Cheung was a whistleblower who worked in Theranos’ blood lab. Holmes and Balwani’s trials were strikingly similar. On Tuesday, Schenk displayed photographs of every witness who testified for the 3-month-long trial. (Photo by Justin Sullivan /Getty Images) Key witnesses for Balwani’s trial Ramesh “Sunny” Balwani was COO of Theranos. They came up with two schemes, two plans, to defraud investors and patients,” Schenk said. Balwani knew there were two sources of possible revenue for Theranos. He knew Theranos was not generating revenue, and would not generate any meaningful revenue, by being honest. He could watch Theranos fail, watch his girlfriend’s business collapse. “In 2013, Theranos was running on fumes, it needed an infusion of cash to survive. They did this despite knowing Theranos’ technology was deeply flawed. It’s only a matter of time before that house of cards crumbles,” Schenk told the jury.įaced with failure, Holmes and Balwani conspired together to defraud sophisticated investors out of millions and endangered patients’ lives by moving forward accepting patients for blood testing in Walgreens stores, Schenk said. “He knows his financial projections are wrong. The two Theranos executives built a Silicon Valley biotech blood testing company with a “house of cards,” Assistant US Attorney Jeff Schenk told jurors. ( KRON) - Prosecutors delivered closing arguments Tuesday for the fraud trial of Ramesh “Sunny” Balwani, Elizabeth Holmes’ ex-boyfriend and business partner.
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