"Ex-Boyfriend Abused and Controlled"... 'Mega Venture Fraud' Teranos CEO Reveals
Published 30 Aug.2021 02:00(KST)
Updated 30 Aug.2021 13:32(KST)
[Asia Economy Reporter Hyunju Park] Elizabeth Holmes, the founder and former CEO of Silicon Valley bio venture 'Theranos,' is reported to claim that she was abused by her ex-boyfriend, who was also an executive at the same company.
Some analysts suggest that Holmes' revelation may be a defense strategy ahead of the trial. Currently, Holmes and her ex-boyfriend, Ramesh Sunny Balwani, former president and COO of Theranos, have been indicted by prosecutors on charges of fraud and conspiracy.
The Wall Street Journal (WSJ) cited recently submitted court documents on the 28th (local time), reporting that Holmes is likely to claim in the upcoming trial that she was abused by Balwani for 10 years.
The documents contain Holmes' allegations that Balwani, who was both her business partner and lover, subjected her to psychological, emotional, and sexual abuse. Holmes claimed that Balwani controlled what she ate, when she slept, how she dressed, monitored her text messages and emails, and even threw sharp objects at her.
However, Balwani denied the abuse allegations in court documents he submitted.
Balwani, a veteran executive in the information technology (IT) industry, is about 20 years older than Holmes. They met while Holmes was attending Stanford University. Holmes later joined Theranos as an executive, and the two maintained a secret relationship hidden from the board and employees.
Theranos is currently under suspicion of orchestrating one of Silicon Valley's most notorious venture frauds. The company claimed to have developed a device capable of diagnosing various diseases using just a few drops of blood from a fingertip, attracting attention from the medical industry. At one point, Theranos' valuation soared to $9 billion (approximately 10 trillion KRW).
However, after media reports raised doubts that Theranos' diagnostic technology was essentially fictitious, the company's value plummeted rapidly and it was eventually liquidated. Holmes and Balwani were indicted by prosecutors on charges of fraud and conspiracy against investors and patients but maintain their innocence.
WSJ pointed out that Holmes' abuse allegations just days before the trial reveal the defense strategy her lawyers are preparing.
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