Billionaire Elizabeth Holmes, founder and chief executive officer of Theranos Inc., left and Christian Holmes arrive at 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, 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 hall of mirrors at the carnival, according to the government, it was all an illusion.
Elizabeth Holmes planned to use Theranos “as a tool to improve her personal situation,” prosecutors wrote in a motion to the court Friday night.
“The causal link between the defendant’s fraud and the benefits in question is strong,” said the government.
Holmes and her COO, Ramesh “Sunny” Balwani, are each facing a dozen criminal fraud charges and, if convicted, could spend up to 20 years in prison.
As Theranos CEO, prosecutors said Holmes lived an extravagant lifestyle, including “traveling on private planes, staying in luxury hotels, and access to multiple assistants.”
“Although the defendant’s assistant was an employee of the company, she performed a series of non-business tasks for the defendant, including buying personal clothing and jewelry, home decor, buying food and groceries, and other items,” the said. government in an application.
The government’s motion was in response to attempts by Holmes’s attorneys to prevent the jury from hearing details about her jet-set lifestyle.
The government wants to prove that the alleged fraud at Theranos was directly related to the money and fame that Holmes gained as CEO of Theranos.
Prosecutors wrote that Holmes’ was the object of admiration in local and national business and has appeared in numerous publications and on television. She interacted with influential individuals, including politicians and business leaders. The evidence at trial will show that these benefits were meaningful to the defendant, who kept a close eye on the daily news to cultivate her image. “
Holmes was a Silicon Valley sweetheart who raised more than $ 700 million in investor money.
“In addition to the tangible benefits she received from her fraud, she also received a lot of positive attention from the media, business leaders and dignitaries,” the prosecutors wrote.
The motion comes on the same night that Holmes’s attorneys claim her failed business was no different from any other Silicon Valley start-up trying to make a name for itself.
The government is “ asking for an injunction preventing the defense ” from focusing on the culture of Silicon Valley start-ups, arguing that founders in this area often use exaggeration and dramatic promises to draw attention to generate their businesses and raise capital, ”the court said. said by Holmes’s lawyers.
Her lawyers argue that evidence related to the culture of Silicon Valley start-ups may be relevant to the case: ‘For example, the government plans to provide evidence of certain practices that the government claims have a culture of’ secrecy ‘ created at Theranos. to show that Mrs. Holmes is hiding alleged fraud. “
Although Ms. Holmes has proceeded to rule out such evidence, if admitted, Ms. Holmes could certainly provide evidence that other Silicon Valley start-ups used similar practices and that individuals at Theranos were aware of these practices. . “
Holmes will face her fate in July. In performances at Zoom, she seemed gloomy at times, in stark contrast to the image she once projected onto the world.