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Government lawsuit Elizabeth HolmesThe Theranos founder presented several key pieces of evidence showing that he was deliberately deceiving doctors, patients, and investors at the start of the blood test.
They included:
fraud report
In 2010 Theranos produced a 55-page report that prominently featured the logos of the pharmaceutical companies Pfizer, Schering-Plough, and GlaxoSmithKline. Investors such as Lisa Peterson, who manages investments for the wealthy DeVos family, and Walter Mosley, whose clients include the Walton family, confirmed that the report helped persuade them to invest in Theranos.
Problem? Pfizer, Schering-Plough, and GlaxoSmithKline did not prepare or sign the report. While prosecutors did not prove that Ms. Holmes prepared the report, witnesses such as Daniel Edlin, Theranos’ former senior product manager, confirmed that she had signed all of the investor materials.
An investor letter
Theranos spent years discussing the possibility of deploying its technology on the battlefield with the Department of Defense, but no partnerships materialized.
But Ms Holmes said in a letter to potential investors that Theranos had signed contracts with the US military – these allegations helped persuade them to invest, the investors testified.
“We really relied on the fact that they’ve been working for pharmaceutical companies and government for years,” Ms Peterson said.
Internal emails
Emails among Theranos employees made up the bulk of the documents exposed by the prosecution. Some emails showed Theranos was hiding device malfunctions, drawing abnormal results from test reports, and showing fake demonstrations of the blood test.
In one case, Mr. Edlin asked a colleague for advice on how to showcase Theranos’ technology to potential investors.
Theranos software engineer Michael Craig recommended that Mr. Edlin use the demo app, which is a custom setting on Theranos’ devices that says “running” or “processing” when an error occurs, rather than showing the error.
Mr. Craig wrote in an email that the app will hide errors from the client.
“It’s never a bad thing,” replied Mr. Edlin. “Let’s go with the demo, thanks.”
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