Jury deliberations begin in Elizabeth Holmes federal fraud trial

Elizabeth Holmes Theranos trial — Theranos founder Elizabeth Holmes (center) arrives at federal court in San Jose, California on Aug. 31, 2021. [Photo by David Paul Morris/Bloomberg via Getty Images]

The jury in the Elizabeth Holmes federal fraud trial begins deliberations today after three months of testimony from many witnesses.

Both the prosecution and defense rested its cases last week with final arguments. The trial has seen testimonies from 32 witnesses including Holmes herself, as well as more than 900 exhibits.

During closing arguments, Holmes’ defense attorney Kevin Downey told the jury that Holmes always acted in good faith and was motivated to work by ambition and optimism and that she really believed in the technology, according to multiple news reports. He also brought up the numerous star-studded Theranos board members.

“Do you think that Ms. Holmes, in connection with undertaking her work at Theranos, decided that she would assemble that group of individuals for the purposes of conducting a criminal conspiracy?” Downey said.

The prosecution in its closing statements told the jury that Holmes “chose fraud over business failure” and that she was dishonest with investors and patients.

“That choice was not only callous, it was criminal,” Assistant U.S. Attorney Jeff Schenk said, according to NPR.

Throughout the trial, the jury has heard testimony from a number of important figures in the Theranos saga. Former U.S. Secretary of Defense Gen. James Mattis testified in September that he felt misled into believing the Theranos technology could save the lives of troops in battle.

Multiple former Theranos employees turned whistleblowers testified throughout Holmes’ trial to test inaccuracies and the conditions of Theranos labs. They also claimed that complaints of inaccuracies went unheard by both Holmes and former Theranos president and chief operating officer Sunny Balwani.

Some of Theranos’ former business partners like Safeway and Celgene also testified to allegedly being misled by Holmes and Theranos into believing that the technology works.

Holmes herself was the last witness to take the stand in her own trial. In her time on the stand, she alleged that Balwani, who was her former romantic partner, was emotionally and physically abusive. She claimed that he often berated her and wanted her to rebuild and “become a new Elizabeth” to succeed at Theranos. Balwani has denied all allegations.

Holmes has also expressed remorse during one cross-examination and took fault in being too quick to dismiss concerns. She did not deny being in charge of Theranos, according to multiple reports.

The jury, which is made up of eight men and four women will decide whether Holmes committed fraud. If found guilty on all counts, she could face up to 20 years in prison.

Holmes claimed Theranos would revolutionize blood testing with technology that could analyze tiny amounts of blood and inked retail partnerships with Walgreens and Safeway. Forbes in 2015 recognized Holmes as America’s richest self-made woman based on Theranos’ multibillion-dollar valuation at the time.

Investigative reporting soon dismantled Holmes’ technological claims, raising questions about whether she and others misled investors. The downward spiral culminated in the 2018 shutdown of the company, with the U.S. Securities and Exchange Commission accusing Holmes and former Theranos President and COO Sunny Balwani of a “massive fraud.”

Holmes and Balwani face 10 counts of wire fraud and two counts of conspiracy to commit wire fraud over allegations that they knowingly misled investors by claiming Theranos technology could revolutionize blood testing.

They have both pleaded not guilty to all charges. Balwani’s trial is expected to follow the Holmes trial.

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