Former Safeway CEO says Theranos delays raised red flags
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Elizabeth Holmes (ex-CEO of Theranos) arrives in San Jose for the hearing on July 17th, 2019.
Stephen Lam | Reuters
SAN JOSE, CALIF. — Steve Burd (ex-CEO of Safeway) testified Wednesday in Elizabeth Holmes’ criminal fraud trial. He said that repeated delays using Theranos’ blood-testing machine raise red flags regarding his failed multimillion-dollar partnership with Theranos.
Burd stated to the jury that deadlines were being missed, and that they often didn’t give an explanation. “I was constantly asking for details. That was what made it frustrating. “We tried our best to assist them in any way that we could.”
Burd’s testimony was given on the exact same day as a jury in the trial disclosed she would not be able to send Holmes to prison. The judge then excused Burd from the case.
Safeway spent more than $300 million on clinics to be built in its hundreds of grocery stores ahead of the introduction of blood-testing technology. Burd explained that the idea behind the partnership was that the blood-testing results would be available while you shop and before you go.
Burd served two decades as Safeway CEO. He stated that Holmes was the first person to charm him. Her vision was to make blood-testing technology more affordable and quicker for customers.
Burd stated, “I was impressed.” I’ve only met a handful of people who are charismatic in business. She was charismatic and smart, and was capable of creating a company from scratch.
Theranos’ former CEO faces 12 charges of wire fraud, conspiracy to commit wirefraud and other related offenses. Federal prosecutors say Holmes and Ramesh Balwani, her senior executive, conspired to commit wire fraud and conspiracy to commit it. This multi-million-dollar scheme was designed to defraud investors as well as patients. Holmes and Balwani plead not guilty.
Burd stated that Safeway saw the partnership with Theranos to be an opportunity to grow into healthcare. Theranos blood-testing machine miniLabs was experiencing delays repeatedly, which raised concerns.
Burd stated that Holmes had demonstrated the device during a board meeting. The board members were subjected to a prostatic-antigen testing. Burd recalls that blood was taken, the results were not obtained.
Burd further testified that Holmes had never told him she was having a relationship with Balwani.
Burd explained, “It raises questions about what else may be hiding.”
Juror says, “It’s really tough for me.”
Burd’s testimony was given just after the judge exonerated juror No. 4. She stated that she is Buddhist, and was concerned about punishment.
According to the juror, it was “really hard” for her. If she is required to remain there for an extended period of time, I am thinking about what has happened. This is my fault and I am sorry for it. She believed in forgiveness, love and compassion.
U.S. District Judge Edward Davila stated that “your responsibility as a jury is to decide only the facts of the case. You are not responsible for determining any punishment.” That’s up to the court. It’s not your choice.
Danny Cevallos, NBC News Legal Analyst said that it is extremely rare for a juror to be excused from a case because of overwhelming support for a defendant.
Cevallos stated that “Maybe this was something we ought to have known,” Elizabeth Holmes charmed many of the most respected and high-profile individuals including Henry Kissinger (George Shultz) and James Mattis. The most remarkable thing about her is how she has been able to have this influence on jurors without speaking a word and just by sitting down at the defense tables.
Holmes was also excused this second juror.
Davila exonerated a 19 year-old girl for financial hardships in September. From the initial five jurors, there are now three additional jurors.
Cevallos advised that losing too many other jurors can lead to mistrials.
Cevallos stated that “that would have been an amazing juror for our defense to retain.” They are probably lamenting losing a juror to Elizabeth Holmes.
Alternate juror Number 2 was her replacement. After being placed on the main court bench, her replacement, alternate juror No. 2, also expressed concern. Holmes’ future was in jeopardy, according to the juror.
Holmes looked at him and said, “She is so young.” “I don’t know if my readiness to be part of something like this is 100%, English being not my first language. So I don’t really know.”
Davila reminded her juror that she was not responsible for any punishments in this case, and that a diverse jury is vital. Holmes was accepted by federal prosecutors as well as defense lawyers.
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