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Ex-Theranos venture supervisor testifies that Elizabeth Holmes advised him to hide elements of testing lab

Elizabeth Holmes (L), founder and former CEO of Theranos, leaves the courthouse along with her husband Billy Evans after the primary day of her fraud trial in San Jose on Sept. 8, 2021.

Nick Otto | AFP | Getty Photographs

]SAN JOSE, CALIF. — Daniel Edlin, a former Theranos venture supervisor who was associates with Elizabeth Holmes’ brother, testified on Friday that Holmes advised him to hide elements of the corporate’s lab to potential buyers and different vital guests.

Edlin, who labored at Theranos from September 2011 to December 2016, attended Duke College, the place he was associates with Christian Holmes, the youthful brother of the Theranos founder. He advised jurors in Elizabeth Holmes’ criminal trial that in excursions at Theranos, guests can be proven a demo room with the corporate’s MiniLab, its blood-testing expertise.

Holmes and Ramesh “Sunny” Balwani, Theranos’ former president, determined the place the visitors would go.

“I recall that prematurely of the tour there would be sure areas of the labs that had been hidden by a partition,” stated Edlin, who reported on to Holmes. “Typically instances [it was] areas the place there have been Theranos units to verify whoever was within the tour could not see them.”

Holmes’ trial started final month, and prosecutors are persevering with to name witnesses. The Theranos founder is charged with 12 counts of wire fraud and conspiracy after her blood-testing start-up, as soon as valued at $9 billion, collapsed starting in 2015. Holmes pleaded not responsible, as did Balwani, who can be tried individually.

Edlin advised jurors that his job on the firm was to deal with supporting relationships with enterprise companions like Walgreens. He stated he left Theranos to attend enterprise faculty, and “at the moment I now not believed based mostly on what I used to be seeing that the corporate was able to standing behind the claims it was making about its ability.”

His departure got here a couple of 12 months after the Wall Avenue Journal, in a series of articles, uncovered the corporate’s expertise flaws and enterprise shortcomings.

“I simply now not wished to be in that sort of atmosphere,” he stated. Edlin added that he did not be taught till 2016 that the MiniLab wasn’t used on sufferers.

Edlin was one among many associates of Holmes’ brother from Duke who went to work for Theranos. He stated they interviewed as a gaggle.

“We did not focus on too many particulars on the time however it gave the impression of there was loads of potential,” Edlin stated.

Edlin advised jurors that Holmes was within the workplace “on a regular basis actually from early morning till late within the night” and often on weekends. He stated there was a interval the place he met with Holmes day by day.

His testimony continues on Tuesday.

Lance Wade, a protection legal professional for Holmes, advised the decide on Friday that he was “deeply troubled” by the prosecution’s line of questioning with sure witnesses, together with former lab administrators Sunil Dhawan and Adam Rosendorff.

Wade stated that sure questions the prosecutors have requested the previous lab employees appeared to indicate that Theranos staff had been falsifying data or knowledge.

“There’s been questions with a pair witnesses now that to our ear create an impression that there is some underlying falsification or knowledge integrity concern,” Wade stated. He added, “there is no proof of that within the case.”

Wade stated that line of questioning “has clearly very prejudicial implications for our consumer.”

Jeff Schenk, an assistant U.S. legal professional prosecuting the case, stated the questions for Dhawan had been supposed to point out jurors that he was making assumptions about what was taking place contained in the lab.

WATCH: Theranos founder Elizabeth Holmes’ trial underway

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