For months, Ramesh Balwani’s lawyers tried to separate him from Elizabeth Holmes, his ex-girlfriend and business partner at the failed blood-testing company Theranos.
Ms. Holmes was convicted in January of defrauding start-up investors. Mr. Balwani wants a different outcome in his own fraud trial.
But on Tuesday, in Mr.’s final arguments. Balwani’s jury, the plaintiffs directly referred to Ms. Fraud that has been going on for years in Holmes and Theranos. Jeffrey Shank, assistant U.S. attorney and chief prosecutor in the case, displays a text message that Mr. Ms. Balwani. Holmes was used in 2015 as evidence in a trial.
“I am responsible for everything in Theranos,” said Mr. Balwani has written. “All my decisions are also.”
The text was a confession of guilt, Mr. “He acknowledges his role in the fraud,” Schenk added.
More than three months of testimony was given in the presentation. Balwani’s trial, which was mostly conducted by Ms. Holmes’s last fall. She and Mr. The 57-year-old Balwani was accused of exaggerating the capabilities and commercial operation of Theranos’ blood-testing machine in 2018 when, in fact, the products were not working and his business was struggling. The pair pleaded not guilty. Ms. Holmes was convicted on four of the 11 charges.
Trial for Mr. Balwani, who is known as Sunny, has Ms. Holmes’s case. Yet it serves as a whip for the declining era of start-up growth that often relies on hype and hyperball. Ms. Holmes and Mr. Balwani is one of the few tech executives to be prosecuted for fraud.
As Ms. Holmes tried to blame others for fraud in Theranos, Mr. Balwani has pointed a finger at him. Throughout the trial, his lawyers argued that many of Theranos’ blood tests worked. He said something Holmes, not Mr. Balwani controlled Theranos. And on Tuesday, they met Mr. Revolt as a true believer in Theranos’ vision and technology.
Mr. Balwani “put his heart and soul into Theranos,” said Jeffrey Coopersmith, who represents him. “He worked tirelessly year after year to make the company a success.”
Ms. Holmes, now 38, met Shree. Balwani when she was 18 years old. They started dating years later, Ms. Holmes founded Theranos. Mr. Balwani joined Theranos in 2009, became its chief operating officer, and eventually invested 4.6 million in the company and ran its lab. The couple kept their relationship a secret and lived together in a large co-owned house in Atherton, Calif.
In 2016, after Theranos came under fire for lying about his blood testing abilities, Mr. Balwani left the company and Ms. Holmes. The pair were accused of cheating together, but Ms. Holmes argued in the filing to dismiss the cases and accused Mr. Strengthening of emotional and sexual abuse. Her trial included dramatic testimony recounting the charges. That subject was excluded from Shri. Rebellion trial.
To convict Mr. Instead, prosecutors must convince the jury that he deliberately lied to investors and patients about Theranos’ blood tests and business dealings.
The plaintiffs tried to put the blame on Mr. The financial estimates shown by Theranos to investors and the strength of his lab position. New witnesses include investors and officials who dealt directly with Mr. Balwani, Ms. Holmes.
An estimate released to investors in October 2014 showed that Theranos would bring in $ 140 million that year. In fact, the revenue was $ 150,000. In the second year, Mr. Balwani had projected investors to earn about $ 1 billion. Theranos’ internal estimates were very low, the evidence shows, and the reality was $ 429,210.
Mr. Schenk said the leaders of Theranos had instructed its scientists to validate blood tests and to start offering tests only when people needed money from investors or consumers. “Not when science was ready,” he said.
A new witness, Patrick Mandenhall, who dealt directly with Mr. While investing in Theranos, Balwani outlined promises that turned out to be misleading or false.
Brian Grossman, investor in hedge fund PFM Health Sciences Holmes’s trial testifies that Mr. Balwani provided his team with financial estimates that exceeded Theranos’ estimated income.
“When Mr. Balwani communicates with an investor, it is for a purpose, and the purpose is to deceive him to get money,” said Mr. Balwani. Shank said.
The lawyers also insisted on Mr. Balwani’s role in running Theranos’ lab, which the executive called a “disaster zone” in a 2014 text message. Mr. Balwani will also “remove dissent” by intimidating or pressuring employees who express concern about Theranos tests, such as Drs. Adam Rosendorf, a former lab director who testified in both trials, was arrested by Mr. Shank said.
Mr. Defendant’s lawyer, Coopersmith, said the government had painted a “very misleading” picture of Mr. It was inappropriate to show private writings outside the context of the time of the revolt in Theranos and evidence of that conspiracy.
The messages did not reflect Mr. Asking Balwani to cheat anyone, Mr. Said Coopersmith. “If there was a conspiracy, you would think there would be all sorts of conspiratorial, ominous conversations, and not there,” he said.
Significantly absent from the witness stand were James Mattis, former Secretary of Defense and member of the Theranos Board, and Ms. Holmes, who both met Ms. Holmes’s trial. Mr. Balwani did not testify in his defense.
If he is found guilty, Mr. Balwani and Ms. Holmes will be sentenced together in September.
Erin Woo Contribution Report.