That same year, Holmes was charged with fraud. Her trial began on September 8 after many delays. Prosecutors outlined six main areas of Holme’s alleged deception, including lies about the capabilities of Therano’s technology, its work with the military and its business results.
The government called former Theranos employees to testify that startup technology regularly failed quality control tests, gave inaccurate results and could perform only a dozen tests, instead of the hundreds that Ms. Holmes claimed. Doctors and patients talked about how they had made medical decisions based on Theranos tests that turned out to be wrong.
The prosecution also showed a set of Theranos validation reports bearing the logos of pharmaceutical companies that had neither prepared nor signed the conclusions there. They showed letters to investors where Ms. Holmes erroneously claimed that Theranos had military contracts and emails from employees who said the company was hiding device errors and removing abnormal blood test results.
In testimony, investors and pharmaceutical executives said that Ms. Holmes’ misleading claims had led to them investing millions of dollars in Theranos or signing contracts with her company.
“The government spent a lot of time submitting evidence of not just one particular alleged misrepresentation, but several,” Mr. Melendres said. “If you put up three, four, five, half a dozen error messages, it will be more difficult for the jury to gather around anything other than that it was an intentional scheme.”
Last month, Ms. Holmes stood and painted himself as a well-meaning entrepreneur who was naive and relied too much on those around him. She said she had been emotionally and physically abused by Ramesh Balwani, Therano’s former chief operating officer and her ex-boyfriend. Mr. Balwani, who faces identical fraud allegations such as Ms. Holmes, who is facing trial next year, has denied the allegations.
On Thursday, Schenk focused on facts and evidence, in contrast to Holmes’ emotional performance at the stand. He went through the witnesses one by one and outlined each of the 11 conditions against Holmes. Sometimes he instructed the jurors to write down the exhibit number to refer to during consideration.