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Theranos investor Betsy DeVos’ rep says Elizabeth Holmes misled them

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Elizabeth Holmes, former CEO and founder of Theranos arrives at the U.S. District Court House in San Jose on Monday, November 4, 2019 for a motion hearing.

NurPhoto | NurPhoto | Getty Images

SAN JOSE, CALIF. — Betsy DeVos’s family representative informed jurors during the Elizabeth Holmes criminal trialThe former CEO of Theranos provided false financials and information about Theranos’ technology to solicit an investment.

DeVos was the Trump’s former education secretary and invested $100 million into Theranos in 2014. Lisa Peterson was the head of private equity at RDV Corporation and was responsible for the Theranos deal. She testified Tuesday on behalf the family.

Peterson stated that Holmes was “hand-picking five to six private families to invest her firm” and invited them to “take part in this opportunity.”

Jurors were told by Peterson that Theranos had shared financial projections. These projected Theranos’ revenue at $140 million for 2014, and $990 million for 2015. Peterson claimed she did not know Theranos didn’t have any revenue in 2012 or 2013.

Holmes claimed that blood tests were performed using Theranos’ own technology when, in fact, the company used third-party software.

Theranos received more than $900million from its investors. Theranos is a then-buzzy, blood-testing company that was founded by Stanford dropouts who promised to transform the future of healthcare. DeVos is not the only media tycoon. Rupert MurdochThe Walton family, Atlanta’s Cox families and Atlanta’s Cox all contributed to the fund.

Holmes faces charges of deceiving investors, doctors and patients about Theranos blood-testing technology’s capabilities. If convicted, Holmes’ co-conspirator Ramesh Balwani (the company president) could face 20 years imprisonment. Balwani and Holmes have each pleaded guilty. Balwani will face separate trials next year.

Peterson stated that the Theranos deal was offered to her because of previous experience with health care. The DeVos family had originally planned to invest $50M in Theranos. But Peterson revealed to jurors how they doubled their investment after speaking with Holmes.

Peterson claimed that at first, she believed “this would be a game-changer for health care.”

Peterson claimed that Holmes made false statements even after her investment. The trial was the first to include video evidence of Holmes. Prosecutors showed three clips from Holmes’ 2015 interview with CNBC’s Mad Money.

Holmes spoke out in defense of her work with Theranos after an investigation by Wall Street Journal into the tech’s shortcomings. Holmes paraphrases The late Sherlock Holmes in an interview that became viral. AppleCo-founder Steve Jobs

Holmes explained to CNBC’s Jim Cramer that this is how it works when people try to make a difference. They first think you are crazy and fight you. Then all of sudden, you can change the world.”

Holmes spoke to Maria Shriver in an interview that she gave on April 16, 2016, when the prosecution said that it was regrettable they didn’t catch these problems sooner. Holmes later said that Holmes was responsible for “anything” in her company.

Peterson claimed that Dan Mosley, another Theranos investor met her after the interview to discuss Holmes’s situation with Holmes. Peterson claims that this was their first meeting with Holmes after making the investment.

“[Holmes]Peterson stated that the company had “very much downplayed” what was happening in press. “Much the correspondence that we received from the company downplayed what we saw in the news.”

Juror questionnaires

Separately, in the trial the federal prosecutors renewed their fight for juror questionnaires not being unsealed.

NBCUniversal’s parent company CNBC is asking for the release of pre-trial jury questionnaires. These include information about their media exposure and views on investing, health care, and religious belief.

The government stated that “all but two jurors voiced concern about their privacy, safety/security, or personal embarrassment” during the interview.

Holmes is now attempting to prevent the publication of the questionnaires for jurors. She has changed her previous neutral stance.

Holmes attorneys stated in the filing that disclosing the case would cause jurors to be distracted and make them vulnerable to external information and influence. They also fear the possibility of harassing their verdict-making during the course of the trial.

The court interviewed every juror and alternate juror in October about potential concerns regarding the release personal data.

A filing stated that Ms. Holmes was concerned about the “cloud over these proceedings”. She lawyers also stated that jurors might not be able “to fairly judge Ms. Holmes’ innocence or guilt.”

Eight men and four ladies make up the 12-member jury that decides Holmes’ fate. Two alternate jurors remain.

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