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SAN FRANCISCO — Four years later, repeated delays and the birth of her baby, Elizabeth HolmesThe founder of blood-testing startup Theranos will be prosecuted for fraud by covering up the Silicon Valley myth of arrogance, greed and deception.

Jury selection will begin Tuesday in federal court in San Jose, California, followed by opening arguments next week. With her trial expected to last three to four months, Ms. Holmes is battling 12 counts of fraud and conspiracy to commit electronic fraud over Theranos’ blood tests and false claims she has made about her work.

Ministry of Justice in 2018 both blamed him and her business partner and once boyfriend, Ramesh Balwani, known as Sunny, are on the accusations. Mr. Balwani’s trial will begin early next year. Both pleaded not guilty.

Ms. Holmes’ case has been taken as an epitome of the prowess of Silicon Valley’s “fake it ’til you make it” culture that has helped propel the region’s start-ups to unimaginable wealth and economic power. The same spirit also allowed scammers and unethical scammers to thriveraises questions about Silicon Valley’s tight control over society, often with little consequence.

But the judgment will ultimately be about one person. And the real question will be whether Miss Holmes is a deceptive schemer driven by greed and power, or a naivete who believes her own lies and is manipulated by Mr. Balwani.

The case is based on Ms. Holmes’ knowledge of Theranos’ problems with blood testing equipment. Legal experts said that while Mr Balwani and others tackled the technology, his lawyers could argue that he was merely the public face of the startup. They could argue that sophisticated investors backing Ms. Holmes should have done better research on Theranos. And they could say that Ms. Holmes followed Silicon Valley norms of exaggeration in the service of an ambitious mission.

Last year, Judge Edward Davila of the US District Court for the Northern District of California agreed to separate the cases of Ms. Holmes and Mr. Balwani. Legal experts said the move was unusual for such cases, allowing the couple to blame each other without the ability to respond.

In sealed 2020 court filings made public over the weekend, Ms Holmes said her relationship with Mr Balwani was a “pattern of abuse and coercive control”. The files said Ms. Holmes’ lawyers could provide expert testimony about her mental state and the effects of the alleged abuse. Mr. Balwani’s lawyers denied the charges in a file. Ms. Holmes, 37, faces up to 20 years in prison if found guilty. High profile start-up founders Uber’s Travis Kalanick with Adam Neumann of WeWork Ms. Holmes, who has been disgraced by ethics scandals, may be one of the few people who actually went to jail for it.

“This type of fraud is often not prosecuted,” said Alex Gibney, the film’s director.Inventor” A documentary about Theranos. “A lot of other people are fake until they do, but that never justifies not taking the blame when someone commits fraud.”

Ms. Holmes’ lawyers did not respond to a request for comment. Balwani’s lawyer, 56, and a representative from the U.S. District of Northern California law firm prosecuting the case declined to comment.

The public fascination with the scandalous details of the Theranos drama will resonate greatly at the trial.

Over the years, Ms. Holmes has enhanced her public image with an unusually deep voice, intense gaze, and stern look. black turtleneck uniform It was intended to wake up Steve Jobs. He installed bulletproof glass in his office and traveled by jet or driver with a safety detail. She reportedly married a hotel heir, William Evans, in 2019. She gave birth to their son in July.

His high profile has trouble finding jurors who haven’t formed an opinion on him or the case. Jurors filled out a 28-page questionnaire summarizing their media consumption, medical experience, and whether they had heard of Ms. Holmes or seen the TED Talk. Nearly half of the 200+ potential jurors consumed media-related media coverage, according to one court. filing last week.

It is unclear whether Ms. Holmes will take the stand in self-defense. As CEO and president of Theranos, he was persuasive and inspiring. He fiercely defended Theranos and dismissed any criticism as a sign that the company is changing the world.

But if Ms. Holmes takes the stand, prosecutors can use past statements to undermine her credibility. In 2017, the Securities and Exchange Commission statement said, replied Answer the questions by saying “I don’t know” at least 600 times.

“I don’t know,” said John C. Coffee Jr., a professor at Columbia Law School. involved in the case. “This is the most damaging piece of evidence against him.”

The once high-flying Theranos were nearly dead when the United States blamed Miss Holmes in 2018.

Ms. Holmes founded the new company in 2003 at the age of 19 and left Stanford soon after. He hired Mr. Balwani in 2009 and has raised more than $700 million from investors valued at $9 billion in Theranos. The Palo Alto, California company has agreements with Walgreens and Safeway to offer the blood tests in their stores. It also drew notables, senators, and generals to its board, including George Shultz, Henry Kissinger, William Frist, and James Mattis.

Ms. Holmes, “We have reinvented the traditional laboratory infrastructure” said at the 2014 conference. “It eliminates the need for people to stick a needle in their arm.”

Later, in 2015, The Wall Street Journal published an article. soap opera Statements questioning the effectiveness of Theranos machines.

An early Theranos skeptic, Stanford professor of medicine Dr. “He committed a fraud,” Phyllis Gardner said. “It has hurt many patients. He saved people from their money.”

Increasing scrutiny from regulators and investors has uncovered more trouble and accusations of cheating, which led to civil fraud charges from the Securities and Exchange Commission and a lawsuit from investors and Walgreens.

By 2016, Forbes estimated the net worth of Ms. Holmes at $4.5 billion, Nothing. In 2018, it settled with the SEC and investors. Theranos closed that same year.

of the Ministry of Justice indictmentAlso published that year, Ms. Holmes and Mr. Balwani told investors that Theranos’ blood testing machines, both of which tests are limited, unreliable and slow. In the indictment, Ms. Holmes and Mr. Balwani also exaggerated Theranos’ business deals, telling investors that the company would generate $1 billion in revenue in 2015 when it only made a few hundred thousand dollars.

Ms. Holmes’ lawyers have repeatedly pressed for a postponement of the hearing since then. They wanted evidence to be excluded and witnesses blocked. They debated over other details, such as whether Ms. Holmes should wear a mask during the trial.

Some fraud charges on behalf of doctors and patients whose tests are paid for by insurance were dropped from the case last year. However, Theranos patients with false test results are allowed to testify.

The list of more than 200 potential witnesses includes many big names entering the Theranos orbit. These include: media mogul Rupert Murdoch, who invested in the startup; David Boies, the star attorney representing Ms. Holmes and sitting on Theranos’ board of directors; and Mr. Kissinger, Mr. Frist and Mr. Mattis.

Lawyers in the case also disagreed over the exaggeration and stretching of the truth about Silicon Valley fundraising. To keep the focus on Theranos, prosecutors sought to prevent Ms. Holmes’ lawyers from arguing that it was common practice for startups to exaggerate their claims to raise funds. But Judge Davila said the court will decide. to give permission General comments on the subject.

Dr. “Imitate until you do – you don’t do that in medical devices,” Gardner said. “They are extremely organized. They need to be completely right and not hurt anyone, and that’s what happened.”