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Theranos Founder’s Trial Begins: The Rise and Fall of a Silicon Valley Icon

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At 19, Elizabeth Holmes became known to the world not as a promising young woman, but as a charismatic leader who could revolutionize the health sector. For a recent graduate of Stanford University, where she studied chemical engineering, success came with a bang, including luxury investor rights, landmark magazine covers, and comparisons in which she praised Steve Jobs as a woman.

The reason for all the fuss? The promise of new technology for laboratory testing, the raison d’être of the startup Theranos, which he founded in 2003 (initially called Real-Time Cures) and whose premise was based on the company’s capabilities, in just a few drops. blood tests, authorities perform over a hundred tests, from cholesterol detection to cancer cases.

Years later, Holmes’s fall was just as drastic, and it turned out to be damaging to the culture of Silicon Valley. The disgraced former CEO is expected to stand trial this week, accused of multiple federal fraud and deliberate misrepresentation of technology’s ability to defraud investors and customers. You face 20 years in prison.

In retrospect, the truth is that Elizabeth Holmes has never produced effective results that validate the value of the company she created. But he had “timing” in his favor and the advantage of making him grow in line with the size of the promise he was selling, in a way that analysts even valued Theranos at around $ 9 billion.

It was self-evident. No one seemed to have seen an advanced diagnostic device that could get rid of the needles and huge vials of blood, but the idea was reiterated that Edison’s hardware was far ahead of any other option available from the competition. When doubts arose and Theranos became synonymous with fraud, Holmes was already the youngest billionaire in the world, as the owner of 50% of the company’s shares, and managed to raise about $ 700 million from investment funds.

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If things got more complicated when regulators asked for more data on the technology developed and the quality of the research being carried out, the opening of the startup’s first test lab in 2013 raised new suspicions. Among them is that Holmes will conduct exams on unapproved equipment and using technology from competing companies, not the one he claimed to have created.

Banned from the sector and held accountable

Theranos was ranked from bad to worse. A former employee confirmed that the company was unable to conduct accurate tests on its own equipment, and an October 2015 Wall Street Journal study questioned not only the machine’s blood testing capabilities, but also the testing methods it used.

When the truth became inevitable, Holmes was ultimately banned from working in the health sector, banned from owning or operating any laboratory for two years. If, as a young leader, in the image of the success that laid the foundation for the Sillikon Valley, the Theranos founder brought in a powerful squad of prominent politicians (including former Secretaries of State Henry Kissinger and George Schultz, or James Mattis, who will become US Secretary of Defense between 2017 and 2019) on the board of the company ), the truth is that investors sued Theranos for fraud and eventually dissolved it in September 2018.

The former visionary, now 37 years old, is now preparing for an ordeal. After months of delays due to the pandemic and the birth of her first child, she will take the dock in federal court in San Jose and face two counts of conspiracy to commit electronic fraud and ten federal counts of fraud. Jury selection will begin on Tuesday and the trial is expected to last for several months, according to the American press.

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Like Holmes, her ex-boyfriend Ramesh “Sunny” Balwani, with whom she had a romantic relationship when they both worked at Theranos, is accused. They are accused of developing a multi-million dollar scheme to defraud investors between 2010 and 2015, as well as another scheme to defraud doctors and patients who paid for their services between 2013 and 2016.

Although both pleaded not guilty, the punishment could be up to 20 years in prison, with potential fines and damages in the thousands and thousands of dollars at stake.

Which way will the defense go? For lawyers, the focus of the litigation will be questions about what Elizabeth Holmes knew when and whether she was going to cheat. According to them, the most difficult thing to prove is the issue of intentionality.

As for the strategy to be followed by Holmes’ attorneys, the first steps involve trying to make Balwani the bad guy. The two will be tried separately, and recently released court documents reveal the reason: the goal would be to make Holmes a victim of psychological, emotional and sexual abuse, detailing the tactics her boyfriend allegedly used to control her and the psychological impact of such violence. insults, writes CNN.

Nothing is known yet. Elizabeth Holmes can only be put in the position of one who genuinely believes in the potential of the technology she has created, the only crime being overly optimistic, with no intent to cheat, not rejecting the possibility of a plea agreement, as they point out. other analysts. It is not even clear yet whether Holmes testifies or prefers silence. The first hypothesis is seen as a risk, but there are those who remember the ability to be convincing – a favorable start to his career proves this.

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Vladimir Putin has delayed the invasion of Ukraine at least three times.

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Putin has repeatedly consulted with Russian Chief of the General Staff Valery Gerasimov and Defense Minister Sergei Shoigu about the invasion, Europa Press told Ukraine’s chief intelligence director Vadim Skibitsky.

According to Skibitsky, it was the Russian Federal Security Service (FSB), which is responsible for counterintelligence and espionage work, that put pressure on Gerasimov and other military agencies to agree to launch an offensive. .

However, according to the Ukrainian intelligence services, the FSB considered that by the end of February sufficient preparations had already been made to guarantee the success of the Russian Armed Forces in a lightning invasion.

However, according to Kyiv, the Russian General Staff provided the Russian troops with supplies and ammunition for only three days, hoping that the offensive would be swift and immediately successful.

The head of Ukrainian intelligence also emphasized the cooperation of local residents, who always provided the Ukrainian authorities with up-to-date information about the Russian army, such as the number of soldiers or the exact location of troops.

The military offensive launched on February 24 by Russia in Ukraine caused at least 6.5 million internally displaced persons and more than 7.8 million refugees to European countries, which is why the UN classifies this migration crisis as the worst in Europe since World War II (1939-1945). gg.). ).

At the moment, 17.7 million Ukrainians are in need of humanitarian assistance, and 9.3 million are in need of food aid and housing.

The UN has presented as confirmed 6,755 civilian deaths and 10,607 wounded since the beginning of the war, stressing that these figures are much lower than the real ones.

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Life sentence for former Swedish official for spying for Russia

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A Stockholm court on Monday sentenced a former Swedish intelligence officer to life in prison for spying for Russia, and his brother to at least 12 years in prison. In what is considered one of the most serious cases in Swedish counterintelligence history, much of the trial took place behind closed doors in the name of national security.

According to the prosecution, it was Russian military intelligence, the GRU, who took advantage of the information provided by the two brothers between 2011 and their arrest at the end of 2021.

Peyman Kia, 42, has held many senior positions in the Swedish security apparatus, including the army and his country’s intelligence services (Säpo). His younger brother, Payam, 35, is accused of “participating in the planning” of the plot and of “managing contacts with Russia and the GRU, including passing on information and receiving financial rewards.”

Both men deny the charges, and their lawyers have demanded an acquittal on charges of “aggravated espionage,” according to the Swedish news agency TT.

The trial coincides with another case of alleged Russian espionage, with the arrest of the Russian-born couple in late November in a suburb of Stockholm by a police team arriving at dawn in a Blackhawk helicopter.

Research website Bellingcat identified them as Sergei Skvortsov and Elena Kulkova. The couple allegedly acted as sleeper agents for Moscow, having moved to Sweden in the late 1990s.

According to Swedish press reports, the couple ran companies specializing in the import and export of electronic components and industrial technology.

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The man was again detained at the end of November for “illegal intelligence activities.” His partner, suspected of being an accomplice, has been released but remains under investigation.

According to Swedish authorities, the arrests are not related to the trial of the Kia brothers.

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Ukraine admitted that Russia may announce a general mobilization

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“They can strengthen their positions. We understand that this can happen. At the same time, we do not rule out that they will announce a general mobilization,” Danilov said in an interview with the Ukrainska Pravda online publication.

Danilov believed that this mobilization would also be convened “to exterminate as many as possible” of Russian citizens, so that “they would no longer have any problems on their territory.”

In this sense, Danilov also reminded that Russia has not given up on securing control over Kyiv or the idea of ​​the complete “destruction” of Ukraine. “We have to be ready for anything,” he said.

“I want everyone to understand that [os russos] they have not given up on the idea of ​​destroying our nation. If they don’t have Kyiv in their hands, they won’t have anything in their hands, we must understand this,” continued Danilov, who also did not rule out that a new Russian offensive would come from “Belarus and other territories.” .

As such, Danilov praised the decision of many of its residents who chose to stay in the Ukrainian capital when the war broke out in order to defend the city.

“They expected that there would be panic, that people would run, that there would be nothing to protect Kyiv,” he added, referring to President Volodymyr Zelensky.

The military offensive launched on February 24 by Russia in Ukraine caused at least 6.5 million internally displaced persons and more than 7.8 million refugees to European countries, which is why the UN classifies this migration crisis as the worst in Europe since World War II (1939-1945). gg.). ).

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At the moment, 17.7 million Ukrainians are in need of humanitarian assistance, and 9.3 million are in need of food aid and housing.

The Russian invasion, justified by Russian President Vladimir Putin on the need to “denazify” and demilitarize Ukraine for Russia’s security, was condemned by the international community at large, which responded by sending weapons to Ukraine and imposing political and economic sanctions on Russia.

The UN has presented as confirmed 6,755 civilian deaths and 10,607 wounded since the beginning of the war, stressing that these figures are much lower than the real ones.

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