Prosecutors and the defense are involved in the initial discussions in the Elizabeth Holmes criminal case. The beginning of a closely watched experiment examining the psychological state and advertising culture of Silicon Valley.
" Finally, Tranos failed. Mrs. Holmes left with nothing. But failure is not a crime. Attempting is not the most difficult and shortest offense.
The trial in US Federal Court in San Jose promises to be one of the most notable tests for alleged abuses in Silicon Valley, a landmark experience in seed funding.
Earlier, the US attorney general said that Holmes deliberately deceived investors and customers in the startup into making him rich. "This is a case of fraud, lying and fraud to make money," US Attorney Robert Leach said. "Elizabeth Holmes decided to lie in time and without money," said Leach.
Holmes has 10 cases of electronic fraud and two cases of conspiracy to commit electronic fraud. He has pleaded not guilty. If convicted, he faces up to 20 years in prison. The clothing brand has become at the height of its popularity. Founded by Holmes in 2003 and headquartered in Palo Alto, Theranos seemed to be a successful startup that had discovered new ways to conduct dozens of medical experiments. Using a small amount of blood in 2014, investors valued the company at $9 billion. But US Justice Department prosecutors indicted Holmes and Ramesh Palvani, the former president of Theranos, in 2018, for allegedly misrepresenting the company's technology. Cheryl Bader, assistant professor of law at Fordham University and former federal attorney. Prosecutors also allege that Holmes and Palvani misrepresented Tranos' financial position to investors, claiming that the company generated $1 billion in revenue in 2015 when sales were low. Holmes' lawyers had previously sought to dismiss the case, arguing that the indictment was too vague. Judge Edward Davila denied their request in October last year.
In March 2020, Davila ordered that the accused be tried separately. Holmes' lawyers argued that Balvani, who is also his ex-boyfriend, was mistreating the founder of Theranos and affecting his judgment. Balwani denied the allegations. Prosecutors provided a list of potential witnesses, including Henry Kissinger, a former board member. Attorney David Boyce, a former advisor to the company, and Rupert Murdoch, the media giant who invested in Tranos. Holmes' lawyers said they could testify before John Wall Carrillo, a former Wall Street Journal reporter whose investigation into the Tranos case helped precipitate the company's collapse. It is unclear whether Holmes himself will testify in the trial, which is expected to last several months.
© 2021 Financial Times Ltd. .
"Failure is not a crime," Theranos' lawyers told the jury.
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