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The trial of Elizabeth Holmes, founder and former chief executive of medical technology company Theranos, has begun in California.

She is pleading not guilty to perpetrating one of the biggest frauds in Silicon Valley history, “an elaborate, years-long fraud” as the US government alleges, and faces up to 20 years in prison.

Theranos itself, which she founded aged 19, has shut down after the unravelling of its claims to have invented a revolutionary finger-prick blood test.

Holmes is accused of knowing this test was unreliable and inaccurate and of hiding this information.

Former U.S. President Bill Clinton speaks with Jack Ma, executive chairman of Alibaba Group, and Elizabeth Holmes, CEO of Theranos, during the Clinton Global Initiative's annual meeting in New York
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Holmes shared the stage with Bill Clinton and Alibaba co-founder Jack Ma

The Downfall

By 2014 the company had announced a partnership with US pharmacy chain Walgreens, and Forbes was hailing Elizabeth Holmes as the world’s youngest self-made female billionaire.

Theranos reached its peak in September 2015 when the company was valued at $9bn (£7bn) and Holmes shared a stage with former president Bill Clinton and Chinese entrepreneur Jack Ma in a panel discussion about equality and opportunity.

But a month later, the Wall Street Journal published a front-page story that claimed the company’s blood testing technology was so flawed Theranos was actually using equipment made by other businesses to carry out tests in its laboratories.

The Journal reported that the company’s former chief scientist had taken his own life two years earlier after telling his wife the finger-prick technology did not work.

Theranos founder Elizabeth Holmes exits Robert F. Peckham U.S. Courthouse after the first day of federal court hearings in San Jose, California, U.S. May 4, 2021. REUTERS/Kate Munsch
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Holmes has pleaded not guilty to the charges

The Charges

Investigations by medical and financial regulators soon followed and in 2018 criminal charges were filed against Elizabeth Holmes and Romesh Balwani, her former boyfriend and the president and chief operating officer of Theranos, accusing them of fraud.

The pair were charged with engaging “in a multi-million-dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients” and each face two counts of conspiracy to commit wire fraud and nine counts of wire fraud.

Theranos made misrepresentations to doctors and patients about the reliability of its tests, the Department of Justice alleged.

The executives were also accused of making misrepresentations to investors about the financial condition of the company, celebrating expected sales of over $1bn when they were actually bringing in just a few hundred thousand.

Former Theranos President and COO Ramesh "Sunny" Balwani smiles after a hearing at a federal court in San Jose. Pic: Reuters
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Theranos president Ramesh Balwani has also been charged with fraud – which he denies

The Trial

Lawyers for Holmes are expected to argue that she was working with an impaired mental state at the time of the fraud due to alleged sexual abuse and coercive behaviour by Ramesh Balwani.

Balwani’s lawyers have denied these claims.

His trial is set to take place next year after his lawyers sought to have him tried separately to avoid Holmes’ testimony prejudicing the jury. He too has pleaded not guilty.

According to an unsealed court document written by Balwani’s lawyers when seeking to have his case heard separately, she “plans to introduce evidence that Mr Balwani verbally disparaged her and withdrew ‘affection if she displeased him’; controlled what she ate, how she dressed, how much money she could spend, [and] who she could interact with”.

The jury selection process has been a challenge, with dozens already removed after confirming their familiarity with media coverage of the case, and with others now asked whether they have any experience of abusive relationships.

The main defence expected from Holmes’ lawyers is that Balwani’s controlling behaviour “erased her capacity to make decisions”, including in the case of knowingly defrauding investors, doctors and patients.

Former Theranos CEO Elizabeth Holmes arrives for a hearing at a federal court in San Jose. Pic: Reuters
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Holmes will be tried at a court in San Jose, California

What does it mean?

Both defendants previously reached a settlement with the Securities and Exchange Commission, relinquishing their shares in the company and paying a $500,000 (£360,000) penalty.

But their case is also emblematic of what is often seen as a culture of ‘fake-it-until-you-make-it’ among Silicon Valley startups, as Sky News business presenter Ian King writes.

Analysis by Ian King, business presenter

There are many lessons to be drawn from the Theranos affair, but perhaps the most worrying thing that has emerged is the culture of secrecy that existed in Theranos, a culture that was – and is – by no means unique in Silicon Valley.

John Carreyrou, the investigative journalist at the Journal whose stories exposed the scandal, has since written a book on the saga, Bad Blood, which highlights the weirdly cultish nature of the company.

Again, in this regard, Theranos was perhaps not so different from a number of other companies in the Valley.

Quite apart from the crushing losses for investors, this secrecy and cult-like nature had other real-world consequences, with many patients likely to have received erroneous blood test results.

There are many outstanding questions surrounding Theranos, not least the outcome of Ms Holmes and Mr Balwani’s forthcoming fraud trial, as well as whether the remaining patents being acquired by Fortress will turn out to have any lasting value.

The biggest of all, though, is whether there are other tech companies presently enjoying outlandish valuations that eventually turn out to be similarly flawed.

The chances must be that there are.

Jury selection has begun in the trial, which the court expects may continue into December.

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Trump says he’ll meet Putin in Hungary for Ukraine talks after ‘productive’ call

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Trump says he'll meet Putin in Hungary for Ukraine talks after 'productive' call

Donald Trump says he will meet with Russian President Vladimir Putin for face-to-face talks in Hungary after the pair made “great progress” during a “very productive” phone call on Thursday.

Mr Trump did not confirm a date for the proposed meeting, but the Kremlin said work would begin “immediately” after the “extremely frank and trustful” call, which it said took place at Moscow’s request.

It would be the second face-to-face meeting between the two leaders since Mr Trump returned to the White House in January, having met in August for a summit in Alaska.

Mr Trump and Mr Putin also agreed that “high level advisors” from Washington and Moscow will meet next week, with US Secretary of State Marco Rubio leading the US delegation.

Mr Rubio and vice president JD Vance were also present on the call with Mr Putin, White House press secretary Karoline Leavitt said.

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Trump-Putin call ‘good and productive’

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Writing on his Truth Social platform after the call, Mr Trump said he “spent a great deal of time” talking to the Russian leader about potential trade between their countries when the war in Ukraine is over.

The call came a day before Volodymyr Zelenskyy’s visit to the White House. Ukraine’s president is hoping to secure Mr Trump’s support to use US Tomahawk missiles, capable of striking deep into Russia.

Mr Putin warned Mr Trump during their call that handing Ukraine the missiles it wanted would harm US-Russia ties and the peace process, Kremlin foreign policy adviser Yuri Ushakov told reporters.

The Russian also congratulated Mr Trump for brokering the ceasefire between Israel and Hamas in Gaza earlier this week and praised his wife, Melania Trump, for her efforts to reunite displaced Ukrainian children with their families.

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First lady in talks with Putin over Ukrainian children

Why are Trump and Putin meeting in Budapest?

According to the Kremlin, Mr Trump suggested Budapest as the location for face-to-face talks with Mr Putin, who immediately agreed to the plan.

Hungarian Prime Minister Viktor Orban, a vocal advocate for dialogue with Russia and critic of EU sanctions on Moscow, welcomed the news enthusiastically, calling Hungary an “island of peace” and confirming preparations after speaking with Mr Trump.

Budapest was among the shortlisted sites for the last summit between Mr Trump and Mr Putin in Alaska.

It also holds historical significance. In 1994, Ukraine surrendered the world’s third-largest nuclear arsenal in exchange for security guarantees through the Budapest Memorandum.

Signed by Russia, the US, and the UK, the agreement promised to protect Ukraine’s sovereignty. It was ultimately broken when Russia annexed Crimea in 2014 and launched a full-scale invasion in 2022.

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Gaza peace plan & Ukraine war: Q&A

What happened in Alaska?

Mr Trump met Mr Putin on US soil on 15 August for a summit which the US leader hoped would help convince the Russian president to enter peace talks to end the Ukraine war.

There were hopes after the call that a trilateral summit could be scheduled that would include Ukraine’s Volodymyr Zelenskyy, but no meeting was arranged.

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Trump and Putin met in Alaska for a summit on Ukraine.

Mr Putin spoke to Mr Trump again days after the summit when European leaders, including Mr Zelenskyy, were at the White House.

There’s been no public confirmation from the White House or the Kremlin that any communication has taken place between the two since then, in which time Mr Trump has taken a tougher line towards Moscow.

In September, Mr Trump signalled a major shift in his stance on the war, saying he believed Kyiv could “win all of Ukraine back in its original form”, having previously suggested the country might need to cede territory occupied by Russia.

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Trump’s former adviser John Bolton charged amid crackdown on president’s critics

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Trump's former adviser John Bolton charged amid crackdown on president's critics

Donald Trump’s ex-adviser John Bolton has accused the president of attempting to “intimidate his opponents” after being criminally indicted on federal charges.

Mr Bolton has been charged with illegally storing and transmitting classified information – alleged crimes which could see him face decades behind bars.

He has been one of Mr Trump‘s most vocal critics since being sacked from his first administration in 2019, and described him as being unfit for office ahead of last year’s election.

He said the charges filed on Thursday were an effort by the president to “to ensure that he alone determines what is said about his conduct”.

“I look forward to the fight to defend my lawful conduct and to expose his abuse of power,” he added.

Why has Bolton been charged?

The FBI searched his Maryland home and Washington office in August for records he may have kept from his time in government, and previously unsealed court filings said agents found multiple documents labelled as “classified”, “confidential”, and “secret”.

Some appeared to concern weapons of mass destruction and national “strategic communication”, they said.

FBI members carrying boxes outside Bolton's home in August. Pic: Reuters
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FBI members carrying boxes outside Bolton’s home in August. Pic: Reuters

Thursday’s indictment alleges Bolton retained multiple files – and used personal email and messaging accounts to transmit documents classified as top secret, the US justice department said.

He has been charged with eight counts of transmission of national defence information (NDI), as well as 10 counts of unlawful retention of NDI, the department said.

Each charge comes with a maximum sentence of 10 years in prison.

Mr Bolton and his lawyer have denied any wrongdoing.

For four decades, I have devoted my life to America’s foreign policy and national security,” he said.

“I would never compromise those goals.”

Asked by reporters at the White House about Mr Bolton facing charges, Mr Trump said: “He’s a bad guy.”

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It marks the third time in recent weeks the US justice department has secured criminal charges against one of the president’s critics.

Ex-FBI director James Comey – who was fired by Mr Trump in 2017 – is facing charges of making false statements to Congress and obstruction of Congress, which he denies.

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September: Bolton on Trump’s approach to Ukraine

New York Attorney General Letitia James, who previously brought a civil fraud case against Trump and his family real estate company, is facing charges of bank fraud and making false statements to a financial institution. She has denied wrongdoing.

Bolton served as US ambassador to the UN, as well as White House national security adviser, before being sacked by Mr Trump in 2019.

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Venezuela’s president pleads for peace after Trump sends in CIA

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Venezuela's president pleads for peace after Trump sends in CIA

Venezuela’s President Nicolas Maduro has accused the US of a coup attempt after Donald Trump approved CIA operations in the country to tackle alleged drug trafficking.

Mr Trump confirmed his decision, first revealed by The New York Times, as he said large amounts of drugs were entering the US from Venezuela – much of it trafficked by sea.

“We are looking at land now, because we’ve got the sea very well under control,” he said.

When asked why the coastguard wasn’t asked to intercept suspected drug trafficking boats, which has been a longstanding US practice, Mr Trump said the approach had been ineffective.

“I think Venezuela is feeling heat,” he said.

Donald Trump at the White House on Wednesday evening. Pic: Reuters
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Donald Trump at the White House on Wednesday evening. Pic: Reuters

Maduro hits back

He declined to answer whether the CIA has the authority to execute Mr Maduro, who denies accusations from Washington that he has connections to drug trafficking and organised crime.

The US has offered a $50m (£37m) reward for information leading to his arrest.

“How long will the CIA continue to carry on with its coups?” he asked after Mr Trump’s comments on Wednesday evening, saying calls for regime change harkened back to “failed eternal wars” in Afghanistan and Iraq.

In a message to the American people, he said in English: “Not war, yes peace. The people of the US, please.”

President Nicolas Maduro. Pic: Reuters
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President Nicolas Maduro. Pic: Reuters

US targets ‘drug boats’

Mr Trump also alleged Venezuela had sent a significant number of prisoners, including individuals from mental health facilities, into the US, though he did not specify the border through which they reportedly entered.

On Tuesday, he announced America had targeted a small boat suspected of drug trafficking in waters off the Venezuelan coast, resulting in the deaths of six people.

According to the president’s post on social media, all those killed were aboard the vessel.

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Footage of the strike was released by Donald Trump on social media. Pic: Truth Social
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Footage of the strike was released by Donald Trump on social media. Pic: Truth Social

The incident marked the fifth such fatal strike in the Caribbean, as the Trump administration continues to classify suspected drug traffickers as unlawful combatants to be confronted with military force.

War secretary Pete Hegseth authorised the strike, according to Mr Trump, who released a video of the operation.

The black-and-white footage showed a small boat seemingly stationary on the water. It is struck by a projectile from above and explodes, then drifts while burning for several seconds.

Mr Trump said the “lethal kinetic strike” was in international waters and targeted a boat travelling along a well-known smuggling route.

There has also been a significant increase in US military presence in the southern Caribbean, with at least eight warships, a submarine, and F-35 jets stationed in Puerto Rico.

‘Bomb the boats’: Bold move or dangerous overreach?

It’s a dramatic – and risky – escalation of US strategy for countering narcotics.

Having carried out strikes on Venezuelan “drug boats” at sea, Trump says he’s “looking a” targeting cartels on land.

He claims the attacks, which have claimed 27 lives, have saved up to 50,000 Americans.

By framing bombings as a blow against “narcoterrorists”, he’s attempting to justify them as self-defence – but the administration has veered into murky territory.

Under international law, such strikes require proof of imminent threat – something the White House has yet to substantiate.

Strategically, Trump’ss militarised approach could backfire, forcing traffickers to adapt, and inflaming tensions with Venezuela and allies wary of US intervention.

Without transparent evidence or congressional oversight, some will view the move less like counterterrorism and more like vigilantism on the seas.

The president’s “bomb the boats” rhetoric signals a shift back to shock and awe tactics in foreign policy, under the banner of fighting drugs.

Supporters will hail it as a bold, decisive move, but to critics it’s reckless posturing that undermines international law.

The strikes send a message of strength, but the legal, moral and geopolitical costs are still being calculated.

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