Elizabeth Holmes on Trial for Wall Street Fraud

This week on Studio B with Martha MacCallum Elizabeth Holmes begins her defense in the first Wall Street trial to involve the soaring valuation of a bio-tech company.

Holmes is set to begin opening statements, the first day in the trial where she could face 30 years in prison.

A federal jury is considering charges against Holmes, founder of Theranos Inc. and her former CFO, Sunny Balwani, which include fraud and money laundering.

Investigators say the women promised Wall Street investors that Theranos used cutting-edge technology that could not be duplicated by competitors. But federal prosecutors have alleged that Holmes and Balwani lied.

Holmes had some of her most shocking testimony yet in court. She said that she was a 28-year-old who decided to start a new type of blood testing lab:

“Now, having taken a closer look at life as well as the world, I came to the understanding that what was happening with the people that I work with and serve, that they all have one thing in common: They all are suffering from a lack of access to reliable information, but particularly in some of the more marginalized communities that we go serve here at Theranos and it starts early. There’s a lack of access to critical, critical, critical information that people need for these other things, and that’s like access to medical information. For diabetes, if you don’t have access to diabetes information, what are you going to do? No one is going to do an insulin injection or diabetic foot exam. Do you? No. Because it’s just kind of against how it is. It’s what it is, I mean. Well, then, what do you do? So I started an organization, that’s this organization called The Medical Revolution — the idea was, ‘What if I had a company that could get that information to everyone.’ And it is, no one has been able to. That’s the problem. It’s just the people that we serve aren’t getting that information and so you can’t have this level of care for patients. So that’s what started me thinking about this testing environment and how this type of thing would be really cool if I could provide it.”

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