Elizabeth Holmes described herself as ‘best business person’ in texts to former Theranos COO
Former Silicon Valley superstar Elizabeth Holmes was once so confident in her own skills and the now-defunct health technology startup, Theranos, that she dubbed herself the “best business person of the year” in messages to the company’s COO, Ramesh “Sunny” Balwani, who was also her boyfriend at the time.
The nearly 600 pages’ worth of private messages, obtained by CNBC as Holmes’ fraud trial unfolds in California, span from June 2011 to July 2016. They provide a glimpse into the luxurious life of the one-time tech wunderkind as she allegedly bilked high-profile investors out of billions of dollars.
Both Holmes and Balwani have each pleaded not guilty to 10 counts of wire fraud and two counts of conspiracy to commit wire fraud. They’re accused of defrauding investors, doctors and patients by alleging Theranos, once valued at $9 billion, could revolutionize medical lab testing with a unique technology, created to administer an array of tests with just a few drops of blood.
At the start of her trial last month, Holmes’ attorney painted her to be a passionate and hardworking executive who, ultimately, ended up a failure. In a 2014 text to Balwani, the Theranos founder created a vastly different portrait of herself.
“My new life as of this night and forever more: - total confidence in myself best business person of the year - focus – details excellence – don’t give what anyone thinks – engage employees in meetings by stories and making it about them (ie prepare well),” Holmes texted Balwani in November 2014 while discussing the full moon that evening.
Ten minutes later, Holmes texted again: “No response?” Balwani responded: “Awesome. U r listening and paying attention…”
In another text chain later the same month, the pair discussed nabbing investments for the company from some of the world’s wealthiest people.
“Just finished calls. Alice Walton in for 50. Confirmed 100 Greg,” Holmes wrote.
While it’s not clear who exactly Greg is, Holmes is apparently referring to Alice Walton, of Walmart fame, in the message. Her family eventually invested a total of $150 million in Theranos in 2014.
“Awesome. I was thinking today,” Balwani responded. “They are not investing in our company they are investing in our destiny.”
In a text just minutes later, Holmes added: “Rupert over 100,” referring to media mogul Rupert Murdoch. He ultimately invested $125 million in the company.
Some of her investors are expected to take the stand during Holmes’ fraud trial in the coming weeks. If convicted on the charges, the former tech darling could face up to 20 years behind bars.
