Theranos Executive Ramesh Balwani Found Guilty of 12 Counts of Fraud - Upsmag - Magazine News

Theranos Executive Ramesh Balwani Found Guilty of 12 Counts of Fraud

Mr. Balwani “put his heart and soul into Theranos,” said Mr. Coopersmith in his closing argument. “He worked tirelessly, year after year, to make the company a success.”

Mr. Balwani had two major strikes against him in his defense, said Michael Weinstein, a former Justice Department prosecutor who is the chair of white-collar litigation at Cole Schotz. One was Mr. Balwani’s age, which made him unable to credibly claim youthful naïveté as a defense, as Ms. Holmes had done.

“Holmes could come off as a bit naïve, and they tried to sell that,” Mr. Weinstein said. But Mr. Balwani “came off as more of an experienced technology executive.”

Further, since Mr. Balwani went to trial after Ms. Holmes, prosecutors essentially got a do-over and honed their case. “The streamlined presentation, the streamlined evidence, the streamlined narrative — all was beneficial for the government in the end,” he said.

Evidence from the trial, including text messages, emails and testimony from 24 witnesses, showed that Mr. Balwani had been deeply involved in nearly every aspect of Theranos’s business and aware of its problems. He led its lab, created its financial projections, presided over personnel issues and attended many pitch meetings with investors.

“Mr. Balwani wants you to think he is a victim,” Jeffrey Schenk, an assistant US attorney and a lead prosecutor in the case, said in his closing argument. “Mr. Balwani is not the victim — he’s the perpetrator of the fraud.”

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