The allegations of abuse by the founder of Theranos favor the selection of the jury in case of fraud

SAN JOSE, Aug 31 (Reuters) – Foundations of Theranos founder Elizabeth Thermes say she was abused by the company’s chief operating officer, who was her boyfriend at the time, which could complicate the selection of the jury in its long-awaited fraud process, legal experts said.

Face-to-face interrogations of potential jurors, up to about 170, are expected to begin Tuesday in federal court in San Jose, California.

Holmes, 37, has pleaded guilty to defrauding investors and Theranos patients by falsely claiming that the company had developed technology to do a wide range of tests with a single drop of blood.

Known for dressing in a Steve Jobs-style black pine collar, Holmes herself has long been an object of fascination in Silicon Valley.

The meteoric rise and spectacular fall of Theranos turned Holmes from a young billionaire into a defendant who could be sentenced to years in prison.

His lawyers have said he can make the unusual move to take a stand in his own defense, which most defendants choose not to do because it opens them up to cross-examination by prosecutors.

Judicial documents filed more than 18 months ago and not closed on Friday afternoon revealed that Holmes had accused former Theranos CEO Ramesh “Sunny” Balwani of psychological and sexual abuse.

Holmes’ lawyers said her “deference” to Balwani led her to believe allegedly false statements about parts of Theranos she controlled, including a claim about an association with the Walgreens pharmacy chain (WBA.O).

Lawyers told U.S. District Judge Edward Davila, who oversees the case, last year that Holmes was “very likely” to testify about those claims, court documents show.

Balwani denied the allegations of abuse in a 2019 court filing. He is scheduled to be tried on Theranos-related fraud charges after the end of Holmes’ trial.

Holmes and Balwani’s attorneys did not immediately return requests for comment Monday.

Before appearing in court, 200 potential jurors filled out questionnaires about his familiarity with Holmes, who has been the subject of two books, two documentaries and a podcast. Thirty-three potential jurors were excused last week, including some who admitted bias.

Christina Marinakis, an IMS jury consultant, a provider of expert and litigation consulting services, said Holmes prosecutors and lawyers have likely gone through the posts of potential jurors on social media to comment on the abuses, since they generally “don’t like to talk about these things in an open court.”

Marinakis said jurors may be reluctant to admit the tendency to view an abuse claim as an “excuse” for Holmes’ conduct.

“They may fear being considered misogynists,” he said.

Holmes was 18 when she met Balwani, who is 20 years her senior, and began living with him three years later, according to “Bad Blood,” the best-selling book in the Wall journalist Theranos saga. Street Journal, John Carreyrou. The book narrates the rise and fall of the Holmes company that began at age 19, concluding that it was a “manipulator” whose “moral compass was very worn out.”

Tracy Farrell, a jury consultant who has worked on sexual assault cases with clergy, said Holmes’ lawyers could favor younger jurors, especially women, who could question any attempt by prosecutors to show defense of abuses such as “another inconvenience.”

“It creates a kind of dissonance for women,” Farrell said. “We want to believe them.”

Marc Agnifilo, a New York lawyer, said Holmes’ case had some parallels with that of Martin Shkreli, a former client found guilty in 2017 of having made investors in his hedge funds.

Prior to his trial, Shkreli gained notoriety for raising the price of Daraprim, a drug that treats life-threatening parasitic infections, by more than 4000% in one day.

Shkreli “inspired this visceral negative reaction that was quite difficult to keep out of the jury,” Agnifilo said.

Holmes’ lawyers, he said, should look for “smart, open-minded jurors [who] they will not just buy the government’s view on the facts. “

Report by Jody Godoy in San Jose, California; additional reports by Nathan Layne in Wilton, Connecticut and Brendan Pierson in New York; Editing by Leslie Adler Editing by Noeleen Walder and TK

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