For months, Ramesh Balwani’s lawyers have tried to differentiate him from Elizabeth Holmes, his ex-girlfriend and business partner at a failed Theranos blood test company.
Bi. Holmes was found guilty of defrauding investors in January. Bw. Balwani is looking for a different outcome in his fraud case.
But on Tuesday, in concluding reports of Mr. In Balwani, prosecutors arrested him directly with Ms. Holmes and years of fraud in Theranos. Jeffrey Schenk, the U.S. attorney general and attorney general in the case, showed a text message that Mr. Balwani used Ms Holmes in 2015 which was used as evidence in the case.
“I am responsible for everything in Theranos,” Mr. Balwani wrote. “It’s all been my decision too.”
The text message was a confession, Mr. Schenk said, adding, “He acknowledges his role in the fraud.”
The submission concluded more than three months of testimony in the case of Mr. Balwani, which largely reflected that of the last fall of Mrs. Holmes. Bi. Holmes and Mr. Balwani, 57, was indicted in 2018 for exaggerating the capabilities of Theranos blood test machines and commercial operations when, in fact, the products did not work and his business was complicated. The two denied the charges. Bi. Holmes was found guilty in four of the 11 charges.
The case of Mr. Balwani, known as Sunny, missed the appeal of Ms. Holmes’ high-profile case. However it is used as a coda for the fading era of early growth which was often based on hype and hyperbole. Bi. Holmes and Mr. Balwani is one of the very few tech actors who has ever been accused of fraud.
Such as Ms. How Holmes tried to blame others for Theranos’ deception, Mr. Balwani points his finger at her back. Throughout the trial, his lawyers argued that most of Theranos’ blood tests worked. And they said that Ms. Holmes controlled Theranos, not Mr. Balwani. They were scheduled to begin their final debate later on Tuesday.
Bi. Holmes, now 38, met with Mr. When Balwani was 18 years old. They started dating several years later, after Ms. Holmes set up Theranos. In 2009, Mr. Balwani invested in Theranos and became its chief operating officer, eventually taking control of his laboratory. The couple kept their relationship a secret and lived together in a large house they owned together in Atherton, Calif.
In 2016, after Theranos was falsely accused of cheating on his blood test, Mr. Balwani left the company and separated from Ms. Holmes. The two were charged with fraud together, but Ms. Holmes argued in the dismissal files of the case and accused Mr. Fight for emotional and sexual abuse. His case included incriminating testimony in connection with the charges. The subject was not included in Mr Balwani’s case.
To convict Mr. In Balwani, prosecutors must have convinced court officials that he deliberately deceived investors and patients about Theranos’ blood tests and commercial activities.
Prosecutors tried to blame Mr. Balwani for the financial estimates that Theranos showed to investors and the state of its laboratories. The new witnesses included investors and executives who directly addressed Mr. Balwani, instead of Ms. Holmes.
One estimate, submitted to investors in October 2014, showed Theranos would bring in $ 140 million that year. In fact, the income was small. The following year, Mr. Balwani estimated about $ 1 billion in revenue in plots for investors. Internal estimates of Theranos were very low, evidence showed, and facts were close to zero.
A new witness, Patrick Mendenhall, who was in direct contact with Mr. While Balwani was making an investment in Theranos, he described the promises made which turned out to be misleading or false.
Brian Grossman, an investor in the hedge fund PFM Health Sciences, who was also a witness in the case of Ms. Holmes, testified that Mr. Balwani provided his team with financial estimates that exceeded Theranos’ expected revenue.
“When Mr. Balwani contacts an investor, it is for a purpose, and the purpose is to deceive them to make money,” Mr. Schenk said.
Prosecutors also emphasized the role of Mr. Balwani in running the Theranos lab, which the executive called a “disaster zone” in a 2014 text message used as evidence. Bw. Balwani will also “remove the opposition” by intimidating or dismissing staff members who expressed concern about Theranos’ tests, such as Drs. Adam Rosendorff, former director of the laboratory who testified in both trials, Mr. Schenk said.
Not present at the witness stand were James Mattis, a former defense secretary and board member of Theranos, and Ms. Holmes, who had all given evidence in Ms.’s case. Holmes. Mr Balwani did not give his own evidence.
If convicted, Mr. Balwani and Mrs. Holmes will be sentenced together in September.