Billionaire Elizabeth Holmes, founder and CEO of Theranos Inc., leaves and Christian Holmes attends a state dinner hosted by US President Barack Obama and US First Lady Michelle Obama in honor of Japanese Prime Minister Shinzo Abe at the White House in Washington, DC, DC, USA, on Tuesday, April 28, 2015.
Andrew Harrer | Bloomberg | Getty Images
Prosecutors paint a picture of what the public saw: a billionaire entrepreneur wearing designer labels with her black turtlenecks while rubbing shoulders with world leaders.
But just like the mirror hall at the carnival, according to the government, it was all just an illusion.
Elizabeth Holmes intended to use Theranos ‘as a tool to improve her personal situation’, prosecutors wrote in a motion with the court on Friday night.
“The causal link between the fraud of the accused and the benefits in question here is strong,” the government said.
Holmes and her chief operating officer, Ramesh ‘Sunny’ Balwani, are each facing dozens of criminal charges of fraud and could face up to 20 years in prison if convicted.
Prosecutors as Theranos CEO said Holmes lived a lavish lifestyle, which included “traveling on private jets, staying in luxury hotels and accessing several assistants.”
“Although the accused’s assistant was an employee of the company, she handled a range of non-business tasks for the accused, including personal clothing and jewelery, home decoration, purchase of food and groceries and other items,” the government said. a statement said.
The government’s proposal was in response to efforts by Holmes’ lawyers to prevent the jury from hearing details about her lifestyle on the plane.
The government intends to show evidence that the alleged fraud at Theranos is directly related to the money and fame Holmes acquired as CEO of Theranos.
Prosecutors write Holmes has been an object of admiration in the business community locally and nationwide, and has appeared in numerous publications and on television. She has been associated with influential individuals, including politicians and business leaders. , who watched daily news closely to cultivate her image. ‘
Holmes was a Silicon Valley sweetheart who raised more than $ 700 million in investor funds.
“In addition to the tangible benefits she received from her fraud, she was also favored by very favorable media attention, business leaders and dignitaries,” prosecutors wrote.
The motion comes the same evening when Holmes’ lawyers claimed that her failed company was nothing more than any other Silicon Valley business trying to make a name for itself.
The government ‘calls for an order preventing the defense from focusing’ on the culture of enterprises in Silicon Valley, arguing that founders in this area regularly use exaggerations and dramatic promises to generate the necessary attention for their enterprises and capital lok ‘. by Holmes attorneys said.
Her lawyers argue that evidence related to the culture of business in Silicon Valley may be relevant to the case: ‘The government, for example, intends to present evidence of certain practices that the government believes are a culture of’ secrecy ‘ created at Theranos, allegedly to show that Ms Holmes had concealed alleged fraud. ‘
“Although Ms. Holmes proceeded to exclude such evidence, Holmes would certainly be able to provide evidence that other businesses in Silicon Valley used similar practices, and that persons at Theranos were aware of these practices.”
Holmes will face her fate in July. In Zoom’s appearance, she sometimes looked grumpy, a stark contrast to the image she once projected onto the world.