Billionaire Elizabeth Holmes, founder and executive director of Theranos Inc., left, and Christian Holmes arrived at an official dinner hosted by US President Barack Obama and US First Lady Michelle Obama in honor of Prime Minister from Japan, Shinzo Abe, at the White House in Washington, DC, USA, on Tuesday, April 28, 2015.
Andrew Harrer | Bloomberg | Getty Images
Prosecutors are painting a picture of what the public saw: a billionaire entrepreneur who wore designer brands in her black turtleneck while standing shoulder to shoulder with world leaders.
But, like the carnival hall of mirrors, 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 to the court on Friday night.
“The causal connection between the Defendant’s fraud and the benefits in question is strong,” said the government.
Holmes and his COO, Ramesh “Sunny” Balwani, each face a dozen charges of electronic fraud and, if convicted, face up to 20 years in prison.
As CEO of Theranos, prosecutors said Holmes lived an extravagant lifestyle, which included “private jet travel, luxury hotel stays and access to multiple assistants”.
“Although the Defendant’s assistant was an employee of the company, she did a number of non-commercial tasks for the Defendant, including personal clothing and buying jewelry, home decor, food and grocery shopping and other items,” said the government. in an archive.
The government’s motion was a response to efforts by Holmes’ lawyers to prevent the jury from hearing details about its jet-set lifestyle.
The government plans to show evidence that the alleged fraud at Theranos was directly related to the money and fame that Holmes achieved as CEO of Theranos.
Prosecutors wrote that Holmes was “the object of admiration in the local and national business community, and appeared in several publications and on television. She partnered with influential individuals, including politicians and business leaders. The evidence at the trial will show that these benefits were significant. to the Defendant, who followed the daily news closely to cultivate his image. “
Holmes was a darling of Silicon Valley who attracted more than $ 700 million in investor funds.
“In addition to the tangible benefits it received from its fraud, it also benefited from a great deal of favorable attention from the media, business leaders and dignitaries,” the prosecutors wrote.
The motion comes on the same night that Holmes’ lawyers say their bankrupt company was no different than any other Silicon Valley start-up trying to make a name for itself.
The government “requests an order preventing the defense from ‘focusing on the culture of Silicon Valley start-ups, arguing that founders in this area often use exaggerations and dramatic promises to generate the necessary attention for their companies and attract capital,” he said. The court. by Holmes, the lawyers said.
His lawyers argue that evidence related to the culture of Silicon Valley start-ups may be relevant to the case: “For example, the government intends to present evidence of certain practices that the government claims to create a culture of ‘secrecy’ in Theranos, supposedly to show that Mrs. Holmes was hiding alleged fraud. “
“While Ms. Holmes acted to exclude such evidence, if admitted, Ms. Holmes could certainly provide evidence that other Silicon Valley start-ups have used similar practices, and that people at Theranos were aware of those practices. “
Holmes will face his destiny in July. In the Zoom appearances, she sometimes looked sulky, a sharp contrast to the image she projected onto the world.