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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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Donald Trump will deploy National Guard troops to Washington DC to ‘re-establish law and order’

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Donald Trump will deploy National Guard troops to Washington DC to 're-establish law and order'

Donald Trump has announced he is going to deploy National Guard troops to Washington DC to make the US capital’s streets safer.

At a White House news conference on Monday, the president said the city’s police would come under federal control as he said the murder rate in DC was “higher than” in some of the “worst places on earth”.

He said he was sending in the troops to “re-establish law, order, and public safety”.

Members of the National Guard outside the US Capitol. File Pic: AP
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Members of the National Guard outside the US Capitol. File Pic: AP

Mr Trump said he was announcing a “historic action to rescue our nation’s capital from crime, bloodshed, bedlam and squalor and worse.

“This is liberation day in DC and we are going to take our capital back.”

The president continued: “So today we are declaring a public safety emergency in the district of Columbia.”

He added it is not just about safety but also the “beautification” of the city.

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“Washington DC should be one of the safest, cleanest and most beautiful cities anywhere in the world and we’re going to make it that.”

Last week, the Republican president directed federal law enforcement agencies to increase their presence in Washington for seven days, with the option “to extend as needed”.

A member of the National Guard patrols the area outside of the US Capitol in 2021.
File pic: AP
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A member of the National Guard patrols the area outside of the US Capitol in 2021.
File pic: AP

On Friday night, federal agencies including the Secret Service, the FBI and the US Marshals Service assigned more than 120 officers and agents to assist in Washington.

National Guard troops usually belong to individual states and personnel in many cases are trained to help with emergencies that those states have to deal with, such as natural disasters.

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Since they are the reserve force of the US military, National Guard troops are usually part-time, meaning that they have other jobs as well.

Minority leader of the US House of Representatives, Hakeem Jeffries, responded to Mr Trump’s announcement on Monday with a post on X which read: “Violent crime in Washington, DC is at a thirty-year low.

“Donald Trump has no basis to take over the local police department. And zero credibility on the issue of law and order.

“Get lost.”

In a social media post on Sunday, Mr Trump emphasised the removal of Washington’s homeless population, though it was unclear where the thousands of people would go.

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“The Homeless have to move out, IMMEDIATELY,” Mr Trump wrote.

“We will give you places to stay, but FAR from the Capital. The Criminals, you don’t have to move out. We’re going to put you in jail where you belong.”

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Trump ‘considering’ whether to invite Zelenskyy to Putin meeting in Alaska

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Trump 'considering' whether to invite Zelenskyy to Putin meeting in Alaska

The White House is considering inviting Volodymyr Zelenskyy to a meeting between Donald Trump and Vladimir Putin in Alaska, according to reports in the US.

The reports come a day after Washington and Moscow confirmed the US and Russian presidents will meet on Friday to discuss bringing about an end to the war in Ukraine.

A senior US official and three people briefed on internal discussions have told Sky News’ US partner network NBC News that the Trump administration is now considering inviting the Ukrainian president to the summit.

“It’s being discussed,” one of the people briefed on the talks was quoted as saying.

Analysis: Zelenskyy faces nightmare deal


Mark Austin

Mark Austin

Chief presenter

For Ukraine – its exhausted, brave soldiers, its thousands of bereaved families mourning their dead, and its beleaguered president – it is exactly what they feared it would be.

They fear the compromise they will be forced to make will be messy, costly, unfair and ultimately beneficial to the invading tyrant who brought death and destruction to their sovereign land.

Read Mark’s full analysis here.

The sources said a visit by Mr Zelenskyy has not been finalised – and it is unclear whether the Ukrainian leader will be in Alaska.

However, the senior administration official said it is “absolutely” possible.

“Everyone is very hopeful that would happen,” the official said.

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Asked whether the US had officially invited Mr Zelenskyy, a senior White House official said: “The president remains open to a trilateral summit with both leaders. Right now, the White House is focusing on planning the bilateral meeting requested by President Putin.”

On Friday – before the summit was confirmed – Mr Trump had told reporters at the White House that “we’re getting very close to a deal” that would end the conflict.

The US president added there will be “some swapping of territories to the betterment of both sides”.

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US diplomacy ‘totally amateur’

Zelenskyy suggests he’s unwilling to give up territory

Yesterday, the Ukrainian president warned that allowing Russia to keep territory it has occupied in Ukraine will result in another invasion.

He said allowing Mr Putin to annex Crimea in 2014 didn’t prevent Russia forces from occupying more parts of Ukraine during the current conflict.

Mr Zelenskyy added: “Now, Putin wants to be forgiven for seizing the south of our Kherson region, Zaporizhzhia, the entire territory of Luhansk and Donetsk regions, and Crimea. We will not allow this second attempt to partition Ukraine.

“Knowing Russia – where there is a second, there will be a third.”

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Zelenskyy: Ukraine will not give land to ‘occupier’

NATO allies say Ukraine must be involved in negotiations

Ukraine and several NATO allies have reportedly been privately concerned Mr Trump might agree to Mr Putin’s proposals for ending the war without taking their positions into account.

In a joint statement last night, UK Prime Minister Sir Keir Starmer and the leaders of France, Italy, Germany, Poland, Finland and the European Commission said Ukraine’s future cannot be decided without Kyiv.

They said: “Ukraine has the freedom of choice over its own destiny. Meaningful negotiations can only take place in the context of a ceasefire or reduction of hostilities.

“The path to peace in Ukraine cannot be decided without Ukraine.

“We remain committed to the principle that international borders must not be changed by force.

“The current line of contact should be the starting point of negotiations.”

Read analysis:
Lifting sanctions a ‘massive victory for Moscow’

Stakes high for Alaska summit as Zelenskyy faces nightmare deal
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From left: Volodymr Zelenskyy, Donald Trump and Vladimir Putin. Pics: AP
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From left: Volodymr Zelenskyy, Donald Trump and Vladimir Putin. Pics: AP

UK hosts Ukrainian officials ahead of summit

Earlier, Foreign Secretary David Lammy hosted a meeting of top Ukrainian officials and European national security advisers alongside US Vice President JD Vance.

The meeting took place at Chevening, the foreign secretary’s official country retreat in Kent, where Mr Vance is staying at the start of a UK holiday.

After the meeting, Mr Lammy said: “The UK’s support for Ukraine remains ironclad as we continue working towards a just and lasting peace.”

From left: Rustem Umerov, David Lammy, JD Vance and Andriy Yermak. Pic: X/David Lammy
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From left: Rustem Umerov, David Lammy, JD Vance and Andriy Yermak. Pic: X/David Lammy

It is understood that the meeting had been called at Washington’s request, and included representatives from the US, Ukraine, France, Germany, Italy, Finland and Poland, as well as the UK.

Ukraine was represented by Rustem Umerov, secretary of the country’s national security and defence council, and the head of Mr Zelenskyy’s office, Andriy Yermak.

In a post on social media, Mr Yermak said the allies’ positions were “clear” that “a reliable, lasting peace is only possible with Ukraine at the negotiating table, with full respect for our sovereignty and without recognising the occupation”.

Ahead of the meeting, Sir Keir discussed the talks in a call with Mr Zelenskyy, and also spoke to French President Emmanuel Macron.

A Downing Street spokeswoman said Sir Keir and Mr Macron “discussed the latest developments in Ukraine, reiterating their unwavering support for President Zelenskyy and to securing a just and lasting peace for the Ukrainian people”.

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Man who killed police officer ‘blamed COVID jab for making him depressed and suicidal’

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Man who killed police officer 'blamed COVID jab for making him depressed and suicidal'

A man who opened fire on the headquarters of America’s national public health agency – leaving a police officer dead – had blamed the COVID vaccine for making him depressed and suicidal.

Patrick Joseph White, a 30-year-old from Georgia, had tried to enter the Centers for Disease Control and Prevention (CDC) headquarters in Atlanta but was stopped by guards, a law enforcement official said.

They added that White then drove to a pharmacy across the street before opening fire late on Friday afternoon.

He was armed with five guns – including at least one long gun.

DeKalb County Police Officer David Rose, who had three children, was shot dead while responding to the incident.

 DeKalb County Police Officer David Rose. Pic: Reuters
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DeKalb County Police Officer David Rose. Pic: Reuters

White also died, but authorities haven’t said whether he was killed by police or if he killed himself.

His father had contacted police and identified his son as the possible gunman.

White’s father also said his son had been upset over the death of his dog and had become fixated on the COVID-19 vaccine.

Health and Human Services Secretary Robert F. Kennedy Jr, whose scepticism of vaccines has been a cornerstone of his career, voiced support for CDC employees yesterday.

But some laid-off CDC employees said Mr Kennedy shares responsibility for the violence and should resign.

An armed police officer at the scene. Pic: AP
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An armed police officer at the scene. Pic: AP

Mr Kennedy has a history as a leader in the anti-vaccine movement, but he reached new prominence by spreading distrust of COVID-19 vaccines. For example, he called it “criminal medical malpractice” to give these jabs to children.

He said after the shooting: “We are deeply saddened by the tragic shooting at CDC’s Atlanta campus that took the life of officer David Rose.

“We know how shaken our public health colleagues feel today. No one should face violence while working to protect the health of others.”

Sarah Boim, a former CDC communications staffer who was fired this year during a wave of terminations, said the shooting was the “physical embodiment of the narrative that has taken over, attacking science, and attacking our federal workers”.

The CDC headquarters in Atlanta, Georgia. Pic: AP
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The CDC headquarters in Atlanta, Georgia. Pic: AP

White’s ‘distrust of COVID vaccines’

A neighbour of White told The Atlanta Journal-Constitution that the gunman spoke with her multiple times about his distrust of COVID-19 jabs.

Nancy Hoalst, who lives on the same street as White’s family, said he seemed like a “good guy” but he would bring up vaccines even in unrelated conversations.

“He was very unsettled, and he very deeply believed that vaccines hurt him and were hurting other people.” Ms Hoalst told the Atlanta newspaper. “He emphatically believed that.”

However, she said she never believed White would be violent and added: “I had no idea he thought he would take it out on the CDC.”

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