Billionaire Elizabeth Holmes, founder and CEO of Theranos Inc., and Christian Holmes left for a state dinner hosted by U.S. President Barack Obama and U.S. First Lady Michelle Obama in honor of Japanese Prime Minister Shinzo Abe at the White House in Washington, DC, USA, on Tuesday, April 28, 2015.
Andrew Harrer | Bloomberg | Getty Images
Prosecutors paint a picture of what the public saw: a multimillion-dollar businesswoman who put on designer labels with her black turtle necks while rubbing shoulders with world leaders.
But like the carnival mirror hall, 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 Friday night.
“The causal connection between the defendant’s fraud and the benefits in question is strong,” the government said.
Holmes and his COO, Ramesh “Sunny” Balwani, face a dozen criminal charges of fraud and, if convicted, could face up to 20 years in prison.
As CEO of Theranos, prosecutors said Holmes lived an extravagant lifestyle, which included “traveling by private jet, staying in luxury hotels and access to various attendees.”
“Although the defendant’s assistant was an employee of the company, he handled several non-commercial tasks for the defendant, including purchasing personal clothing and jewelry, home decor, buying food and groceries. and other articles, ”the government said in a presentation.
The government’s motion was a response to Holmes ‘lawyers’ efforts to prevent the jury from hearing details about his jet-setting lifestyle.
The government intends to show evidence that the alleged fraud at Theranos was directly related to the money and fame 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 numerous publications and on television. He was associated with influential people, including politicians and business leaders. The trial evidence will show that these benefits were significant to the defendant, who closely monitored the daily news to cultivate his image. “
Holmes was a Silicon Valley estimate that attracted more than $ 700 million in investor funds.
“In addition to the tangible benefits she received from her fraud, she was also the recipient of great favorable attention from the media, business leaders and dignitaries,” prosecutors wrote.
The motion comes on the same night that Holmes’ attorneys claim his bankrupt company was no different than any other Silicon Valley start-up trying to make a name for itself.
The government “calls for an order that prevents defense” from focusing on the culture of Silicon Valley’s emerging companies, arguing that the founders of this area often use exaggerations and dramatic promises to generate the attention needed to their companies and attract capital “. according to Holmes’ lawyers.
His lawyers argue that evidence related to the culture of emerging Silicon Valley companies may be relevant to the case: “For example, the government intends to present evidence of certain practices that the government claims created a culture of Silicon Valley. “secret” to Theranos, according to allegedly. to prove that Mrs. Holmes was hiding an alleged fraud. “
“While Ms. Holmes has decided to exclude such evidence, if admitted, Ms. Holmes could certainly present evidence that other Silicon Valley companies use similar practices and that Theranos people were aware of those practices.”
Holmes will face his fate in July. In Zoom’s appearances, she has sometimes seemed moody, a stark contrast to the image she projected on the world.