Tuesday, February 11, 2020

UPDATED—"Theranos founder Holmes’ lawyer hints at trial defense in court hearing"

Update below.
Original post:
An insanity plea has been our bet for the last couple years.
It would be easier in California state court but can still be successful at the Federal level as well.
From the San Jose Mercury News, February 10:

Who got harmed isn’t relevant: ‘The scheme was the fraud,” feds say.
A lawyer for Theranos founder Elizabeth Holmes hinted in court Monday at possible defenses against the fraud charges facing her client.

After U.S. District Court Judge Edward Davila referred to prosecutors’ claim that Theranos’ blood-testing technology “never worked,” Holmes’ lawyer Amy Saharia responded, “That’s not true.” Saharia later in the hearing said Holmes’ team disputes the prosecution’s allegation that some of the defunct firm’s blood tests were unreliable. “There were no problems with them whatsoever,” Saharia said.

Saharia, during a pre-trial hearing in federal court in San Jose, noted that prosecutors have alleged specific incidents of inaccurate Theranos test results, in an HIV test and two pregnancy tests.
“All tests have error rates,” Saharia said. “The government should not be permitted to try a case with anecdotes when incorrect blood tests are a fact of life.”

Even if the prosecution were correct that some patients experienced harm, Saharia said that would be irrelevant to the case because wire fraud involves the loss of money or property. She acknowledged that patients who paid for their own tests could be considered victims, but those who were covered by insurance suffered no loss of money or property, nor did doctors.

Assistant U.S. Attorney John Bostic, arguing for the prosecution, said it didn’t matter whether anyone was harmed. “What matters here is the defendants’ intent,” Bostic said. “It doesn’t matter what ended up actually happening. The scheme was the fraud.”

Holmes is accused of felony wire fraud in connection with her failed Palo Alto startup, which she founded as a Stanford University dropout in 2003. The indictment alleges she schemed to defraud doctors and patients, along with investors who put more than $700 million into the firm....
....MORE
Update:
"U.S. judge drops some charges against Theranos's Holmes, leaves wire fraud"
 
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