In an emotional moment during his fourth day standing trial for a fraudster, Holmes revealed her sexual assault in college and said she stopped taking classes after that. Holmes said she left instead to focus on building her company.
“I questioned what – how could I handle that experience and what I wanted to do with my life – and I decided that I was going to build a life building this company. “, she said.
Holmes testified that she later began a professional relationship that turned romantic with former software director Ramesh “Sunny” Balwani, who will continue as COO of Theranos as they date. She first met him in China after she graduated from high school at the age of 18 and he was 38. Later, when she revealed to him about the trauma of being raped at Stanford, she testified: “He said I was safe, now I’ve seen him.”
Holmes went on to paint a picture of how Balwani both coaches and controls her, criticizing everything from her tone in meetings to her being too girly and behaving “like a little girl”.
“He told me I didn’t know what business I was in, that my beliefs were wrong, that he was surprised at my mediocrity,” she said, adding that he told her ” I need to kill who I am.” to become successful.
Holmes also alleged Balwani would be “very angry with me, and then he would sometimes go upstairs to our bedroom and he would force me to have sex with him when I didn’t want to, because he was.” will say he wants me to know that he still loves me.”
Holmes’ testimony has the potential to provide jurors, through her own words, a glimpse into her state of mind at the time of the alleged fraud. According to legal experts, one of the most difficult aspects of fraud cases is proving intent.
Holmes and Balwani are indicted on the same federal fraud charges, alleging that they knowingly misled investors, doctors and patients about Theranos’ blood test capabilities for their money. Both pleaded not guilty and face up to 20 years in prison.
Their trial was dropped after Holmes said she could claim she was the victim of an abusive relationship psychologically, emotionally and sexually and that, due to the nature of her relationship them, she believes what she is being told about the company’s technology and its business dealings. Balwani’s trial is expected to begin early next year.
In his earlier testimony in the witness stand, Holmes acknowledged some of the prosecution’s most damaging allegations while offering alternative explanations. She was trying to sow suspicions that she intended to deceive — an important part of what federal prosecutors are trying to prove. She also shied away from responsibility for others by only naming those who hold certain roles at the company.
On Monday, Holmes testified extensively about how Balwani shaped the way she approached her business – and how she eventually lost faith in him.
Balwani told her that if she wanted to be a good entrepreneur, she needed to devote all of her time to the business and only do things that could contribute to the company’s success. That is to say, she testified, not sleeping much, eating only foods that “will make me pure.” Holmes’ attorney presented Balwani’s handwritten notes to Holmes.
In a note, Balwani said, “Every morning, I would force myself to get out of bed and spend 30+ minutes (never less than a minute) writing what I wanted out of my day.” In another note, Balwani said Holmes got it wrong about his meetings: “I will always give clear, unambiguous goals and feedback to my subordinates, even if they don’t like – especially if they don’t like it.”
“He taught me everything I thought I knew about business, and I think he’s the best businessman I know,” she said. “I think I didn’t question him the way I would.”
That view changed, Holmes said, after the Centers for Medicare and Medicaid Services’ 2015 test results resulted in the license of their California blood testing facility being revoked and Holmes being barred from operating. laboratory for two years.
Balwani oversaw the lab, and Holmes testified that she thought Theranos had one of the best labs in the world.
“He’s not what I thought he was,” she said. The two had a personal relationship for 13 years and a professional relationship for seven years.
Balwani left the company in May 2016. Holmes was living with him at the time but did not continue a personal relationship with him after he left Theranos. Holmes testified that her brother helped her move out while Balwani was in Thailand.
After detailing Balwani’s influence, Holmes’ attorney asked her if Balwani had forced her to disclose to investors, retailers, board directors and journalists that the defendants were whether or not the judge has heard about it in this case. Holmes testified “no” to all.
Her attorney followed up to ask, in your view, what impact, if any, Balwani had on your work at Theranos? “I don’t know. He’s impacted everything about who I am and I don’t quite get it.”
