Billionaire Elizabeth Holmes, founder and CEO of Theranos Inc., has left, and Christian Holmes arrives 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, Tuesday, April 28, 2015.
Andrew Harrer | Bloomberg | Getty Images
Prosecutors paint a picture of what the public saw: a billionaire entrepreneur who wore designer labels with black collars while breaking with world leaders.
But, like the carnival mirror hall, according to the government, everything was 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 on Friday night.
“The causal link between the defendant’s fraud and the benefits in question is strong,” the government said.
Holmes and her COO, Ramesh “Sunny” Balwani, each face a dozen charges of criminal fraud and, if convicted, could spend up to 20 years in prison.
As CEO of Theranos, prosecutors said Holmes lived an extravagant lifestyle, which included “private jet travel, luxury hotel stays and access to more assistants.”
“Although the defendant’s assistant was employed by the company, she handled a number of non-commercial tasks for the defendant, including personal clothing and jewelry shopping, home decorations, buying food and groceries and other items,” the government said in a statement. a dossier.
The government’s motion was a response to Holmes’ efforts to prevent the jury from hearing details about her lifestyle.
The government intends to show evidence 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 the local and national business community and appeared in numerous publications and on television. She has partnered with influential people, including politicians and business leaders. Evidence from the trial will show that these benefits were significant to the defendant. , which closely monitored the daily news to cultivate its image. “
Holmes was a Silicon Valley sweetheart who raised more than $ 700 million in investor funds.
“In addition to the tangible benefits she received from her fraud, she was also the beneficiary of favorable attention from the media, business leaders and dignitaries,” prosecutors wrote.
The motion comes on the same night that Holmes’ lawyers say her failed company was no different from any other Silicon Valley company trying to make a name for itself.
The government is calling for an order to prevent the defense from “focusing on the culture of Silicon Valley businesses, arguing that founders in this field frequently use dramatic exaggerations and promises to generate the attention they need for their companies and attract capital,” the court said. court. de Holmes said the lawyers.
Her lawyers argue that evidence about the culture of Silicon Valley businesses may be relevant to the case: “For example, the government intends to present evidence of certain practices that the government created a culture of ‘secrecy’ at Theranos, allegedly to show that Mrs. Holmes was hiding alleged fraud. “
“Although Ms Holmes decided to exclude such evidence, if admitted, Ms Holmes could certainly present evidence that other companies in Silicon Valley have used similar practices and that Theranos people were aware of such practices.”
Holmes will face his fate in July. In her Zoom appearances, she sometimes seemed upset, a stark contrast to the image she had once projected into the world.