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Elizabeth Holmes had ‘nothing to cover’ as Theranos collapsed

Elizabeth Holmes had “nothing to hide” within the wake of a damning probe into her blood-testing company Theranos, she wrote in personal notes in regards to the investigation that in the end sparked its demise and her downfall.

Holmes’ observe to herself happened two weeks after The Wall Street Journal ran the first article in an investigative sequence that alleged Theranos had been overstating its expertise and was in actual fact a fraud, according to CNBC, which obtained a trove of the diary-like notes that Holmes typed to herself in 2015.

The Journal’s sequence of articles finally sparked prison and monetary investigations into Holmes — whose trial started earlier this month — her company and her then-boyfriend and COO of Theranos Ramesh “Sunny” Balwani.

Both Holmes and Balwani have pleaded not responsible to two counts of conspiracy to commit wire fraud and 10 counts of wire fraud. They will likely be tried individually, with Balwani’s trial set to begin subsequent year.

Holmes might be despatched to jail for 20 years if discovered responsible.

But within the weeks following the Oct. 2015 publication of the Journal’s preliminary investigation into Theranos, Holmes reportedly wrote to herself, “Point by point refutation statements”

“Fearless transparent nothing to hide”

The Wall Street Journal first started its investigative sequence towards Theranos in 2015.
Alamy Stock Photo

Later that very same night, in accordance to CNBC, Holmes famous, “Board statement – independent look at accusations by board – making statements – no independent opinion. Unwise board – enter – without judgement -”

Another line learn, “Strategic mistake – WSJ – impression – fight – number accusations – made” 

“Weak accusations – endorses everything – happened – if – true – raise doubt – want – board looks into it – finds nothing to any of it – looked into it – have not looked at it independently,” she later added, in accordance to the report.

“Haven’t addressed – doesn’t shake my confidence – my business judgement – no reason – this announcement – know a month from now – business judgement correct at the time. Never for sure,” the identical observe reportedly reads.

Holmes leaves the Robert F. Peckham Federal Building and U.S. Courthouse in San Jose, Calif. last week.
Holmes leaves the Robert F. Peckham Federal Building and U.S. Courthouse in San Jose, Calif. final week.
Jane Tyska/Digital First Media/The Mercury News by way of Getty Images

“Put out statement. Faith – Elizabeth, co.”

Taken collectively, the notes supply some perception into Holmes’ mindset as she dug in and defended herself and her company towards mounting fraud allegations.

In her trial thus far, although, her attorneys haven’t struck the identical tone.

Rather than defending towards fraud at Theranos, Holmes’ attorneys have largely sought to paint an image of Holmes as a CEO who was clueless in regards to the technological particulars of her company and due to this fact not knowingly committing fraud.

Her attorneys have as an alternative pointed the finger at Balwani, alleging that he was the mastermind behind the fraud and that Holmes herself is harmless.

Prosecutors have in flip have sought to present that Holmes and Balwani labored hand in hand, and that Holmes bilked traders out of lots of of tens of millions of {dollars} whereas mendacity in regards to the capabilities of the company’s expertise.

Elizabeth Holmes Sunny Balwani
Holmes’ attorneys try to painting Balwani as the mastermind of the disgraced company.
REUTERS/Stephen Lam

Other notes that Holmes wrote to herself in 2015 present a few of Holmes’ considering earlier than the Journal revealed their investigation.

In one observe, after a dialog Holmes had simply had with Theranos authorized counsel David Boies, Holmes wrote merely, “becoming Steve Jobs” in an obvious reference to the biography “Becoming Steve Jobs: The Evolution of a Reckless Upstart into a Visionary Leader” by Brent Schlender, which had revealed the prior month.

Holmes — a notable Jobs wannabe who commonly mimicked his signature black turtleneck look — even saved a framed picture of Jobs in her office, a former worker advised CNBC.

Holmes usually publicly described Jobs as her idol.

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