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SAN JOSE, California: A jury on Thursday convicted former Theranos executive Ramesh “Sunny” Balwani of collaborating with disgraced Theranos CEO Elizabeth Holmes in a massive fraud involving the blood-testing company that once enthralled Silicon Valley. The 12 jurors found Balwani guilty on all 12 felony counts of defrauding both Theranos investors and the patients who relied on wildly unreliable blood tests that could have jeopardized their health. Balwani sat impassively as the verdicts were read in a San Jose, California, court, blinking frequently but rarely looking at the seven women and five men who convicted him. The outcome puts Balwani and Holmes in similar situations. Holmes was convicted on four counts of investor fraud and conspiracy earlier this year. During that trial, Holmes tearfully accused Balwani of sexually and emotionally abusing her while the two were romantically involved. An attorney for Balwani has vehemently denied those charges. Both Holmes, 38, and Balwani, 57, face up to 20 years in prison. After the verdicts, US District Judge Edward Davila raised Balwani’s bail to $750,000 from $500,000 and set Nov. 15 as his sentencing date. Holmes, who is free on $500,000 bail, is scheduled to be sentenced Sept. 26. The dual convictions represent a resounding victory for federal prosecutors, who seized on the Theranos case as a rare opportunity to hold ambitious entrepreneurs accountable for engaging in technological hyperbole while pursuing fame and fortune. In the process, they hoped to discourage the practice of making bold and unproven promises about still-nascent products — a startup strategy known as “fake it until you make it.” “We are gratified by the jury’s hard work and attentiveness to the evidence presented. We appreciate the verdict and look forward to the sentencing proceedings,” US Attorney Stephanie Hinds said outside the courthouse.
Founded by Elizabeth Holmes, Theranos once enthralled Silicon Valley with its supposedly new blood testing technology that could potentially revolutionize health
Balwani invested in Theranos, then became the company's chief operating officer in 2010. He eventually oversaw the blood-testing lab that was delivering the inaccurate results
Holmes and Balwani, who were also romantic partners, managed to con top investors and personalities into joining Theranos
Everything began to unravel in late 2015 after a series of articles in The Wall Street Journal that exposed rampant problems with Theranos’ technology
Balwani didn’t respond to requests for comment as he left court with his legal team. After the verdicts were read and the jury was dismissed, Balwani walked over to his two brothers who were sitting behind him for what appeared to be a solemn discussion. The three stood quietly, heads bowed. While Holmes insinuated during her trial that Balwani manipulated her into making poor choices, Balwani’s lawyers explicitly sought to shift all the blame for any misconduct squarely on Holmes. As part of Balwani’s defense, the lawyers pointed out that Holmes was not only CEO, but also a Silicon Valley star who persuaded investors to pour nearly $1 billion into Theranos. Holmes boasted that her company had found a way to scan for hundreds of potential diseases with a device called the Edison that could test just a few drops of blood taken with a finger prick. Such technology could potentially revolutionize health care. But it turned out that the Edison never worked properly, providing faulty test results that Theranos conducted as part of a deal to set up mini labs in Walgreen’s pharmacies. The flaws in Theranos’ vaunted technology prompted Holmes and Balwani to shift their testing to conventional machines made by other vendors and while drawing vials of blood from patients’ veins — a far cry from Holmes’ promises. After committing about $15 million of his own money to bolster Theranos and then becoming the company’s chief operating officer in 2010, Balwani eventually oversaw the blood-testing lab that was delivering the inaccurate results and supervised the Walgreen’s deal. That crucial detail may have influenced the jury to convict him of defrauding patients while another jury acquitted Holmes on the same charges. Balwani also prepared many of the projections about Theranos’ future revenue that helped the company raise money from investors Those forecasts proved to be grossly exaggerated. Unlike Holmes, who spent seven days on the witness stand during her trial, Balwani didn’t testify in his own defense. After Holmes’ trial, jurors who were interviewed by the media said they found her to be likeable if not entirely credible. “The reason he didn’t testify is probably because he knows he doesn’t have Elizabeth’s charisma,” said Jill Huntley Taylor, a longtime jury consultant who also assists with trial strategy. Balwani’s decision not to tell his side of the story left jurors to make their decision based solely on the evidence, which included testimony from witnesses who depicted him as an often abrasive executive. “Just because the jurors didn’t hear from Balwani didn’t mean they couldn’t form opinions of him,” Huntley Taylor said. Balwani’s defense mirrored Holmes’s in one key aspect: Both depicted the pair as tireless workers who believed so deeply in Theranos’ technology that they never sold their respective stakes in the Palo Alto, California, company. At one point in 2014, Holmes’ fortune was estimated at $4.5 billion while Balwani’s Theranos holdings were valued at $500 million. But everything began to unravel in late 2015 after a series of explosive articles in The Wall Street Journal exposed rampant problems with Theranos’ technology. By May 2016, Holmes had dumped Balwani as her business and romantic partner. Holmes is now the mother of an infant son fathered by her current partner, Billy Evans, who was by her side through most of her trial.
RIYADH: Mastercard has appointed Adam Jones as the new country general manager of its Middle East and North Africa Central cluster, as it works together with Saudi Arabia towards the goals outlined in Vision 2030.
According to a press release, Jones will lead Mastercard’s operations across Saudi Arabia, Egypt, Jordan, Lebanon, Bahrain, and Iraq.
Jones will work together with Maria Medvedeva, vice president for Saudi Arabia and Bahrain, to materialize the Vision 2030 goals aimed at ensuring diversity and inclusion, empowering youth, and strengthening the involvement of women in the Kingdom to emerge as business leaders.
“The Kingdom is setting the pace for digital acceleration, providing a glimpse of what the future holds for the payments solutions sector,” said Jones.
Medvedeva said, “At Mastercard we strive to empower youth and female leaders to fulfill their potential as innovators and change-makers, reshaping the cultural landscape of the Kingdom to enter the new era of inclusive opportunity. I am proud to be able to set an example across the region and the world.”
RIYADH: Gold was marginally up on Friday, as the dollar clung to its 20-year peak, setting prices on course for their biggest weekly drop in eight by driving down demand for bullion.
Spot gold inched up 0.1 percent at $1,744.07 per ounce by 0323 GMT.
US gold futures were flat at $1,739.70.
Spot silver dipped 0.3 percent to $19.28 per ounce, and platinum firmed 0.1 percent to $874.50, but both were set for weekly losses.
Palladium climbed 0.6 percent to $2,002.50, and has gained about 2 percent for the week.
Chicago wheat futures jumped more than 2 percent and touched a one-week high on Friday, building on the previous session’s rally as easing concerns over a global recession and worries about lower production in Argentina underpinned the market.
Corn and soybeans rose for a third consecutive session.
The most-active wheat contract on the Chicago Board of Trade was up 2.2 percent at $8.55 a bushel, as of 0229 GMT, after climbing to its highest since July 1 at $8.55-1/4 a bushel earlier in the session.
Corn rose 1.2 percent to $6.03-1/4 a bushel and soybeans gained 1.2 percent at $13.81-3/4 a bushel.
Copper rebounding in Shanghai Futures Exchange
Copper retreated in London on Friday and was on track for its fifth straight weekly loss, as worries about COVID-19 curbs in China outweighed hopes for stimulus for the top metals consumer.
Three-month copper on the London Metal Exchange fell 0.5 percent to $7,780 a ton by 0428 GMT.
On the Shanghai Futures Exchange, the most-traded August copper contract ended morning trade 1.2 percent higher at $8,787.83 a ton, off a session high of 60,540 yuan.
Copper rose sharply on Thursday following a Bloomberg News report saying China was considering allowing local governments to sell $220 billion of special bonds in the second half of this year to boost infrastructure funding.
(With input from Reuters)
MINA: Security authorities have confirmed that all this year's Hajj pilgrims were transported from Mina to Arafat early Friday morning in ease and comfort, adding the security cordon around the holy sites will continue for one more day to prevent entry of violations.
With strict health measures being taken, Hajj pilgrims flocked early Friday morning to Arafat after gathering in Mina for Tarwiyah, the eighth day of Dul Hijjah.
The pilgrims will perform combined and shortened Dhuhr (noon) and Asr (afternoon) prayers at Namirah Mosque, where they will also attend this year’s Hajj sermon, to be delivered by Sheikh Dr. Mohammed bin Abdul Karim Al-Issa, secretary-general of the Muslim World League (MWL).
The Arafat sermon was first delivered by Prophet Mohammed on the ninth day of the same month 10 years after he migrated from Makkah to Madinah.
According to Sheikh Dr. Abdulrahman Al-Sudais, president of the General Presidency for the Affairs of the Two Holy Mosques, the sermon will be translated to 14 languages as Saudi Arabia’s leadership seeks to convey Islam’s message of righteousness, justice, tolerance and moderation Islam to the world.
Last year’s Hajj sermon, delivered by Sheikh Dr. Bandar Baleela, focused on urging Muslims to do good to all creatures, including animals and inanimate objects. At that time, only 60,000 Saudi citizens and residents, aged 18 to 65, were allowed to perform Hajj because of pandemic concerns.
Public Security Commander, Lt. Gen. Mohammed Al-Bassami said that all this year’s one million pilgrims were transported to Arafat in ease, adding that the cooperation of all the Hajj working authorities has contributed to the successful movement of the pilgrims.
“We still have other phases of taking these pilgrims to Muzdalifah, Mina, Tawaf Al-Ifadha, and the Tashreeq days,” he said, adding that the security cordon around will continue until Saturday to prevent any entry violators.
RIYADH: Saudi Arabia announced it would allow Lebanese citizens to directly enter the Kingdom without the need to spend 14 days in quarantine in a third country before visiting, a Saudi official said.
Saudi ambassador to Lebanon Waleed Bukhari posted on Twitter the ease of restrictions on Lebanese visitors to the Kingdom.
“Lebanese citizens can fly directly to the Kingdom without spending 14-day quarantine outside Lebanon,” said Bukhari.
All passengers departing from Lebanon were previously required to stay outside Lebanon not less than 14 days before entering Saudi Arabia if vaccinated outside the Kingdom as part of COVID-19 precautionary measures.
The ease of restrictions comes as Saudi Arabia permitted over one million pilgrims to perform Hajj this year in the largest gathering since the pandemic struck.