Elizabeth Holmes, former CEO and founder of Theranos, goes through security upon arriving at court at the Robert F. Peckham Federal Building in San Jose, California on September 17, 2021.
Elizabeth Holmes, former CEO of Theranos, believed so strongly in herself that she sent a text message expressing her confidence in Ramesh Balwani declaring that she was the "best business person" in the year.
The messages to Balwani, her boyfriend at the time, and Theranos president Balwani were among thousands of text and Skype messages that CNBC obtained. They show Holmes had confidence in herself as well as Theranos (the blood-testing company she started). They reveal that Holmes spoke to Balwani about her plans to court high-profile investors, who ultimately gave Theranos hundreds and millions of dollars.
Holmes sent Balwani a text in November 2014, while discussing the full Moon that evening.
Holmes sent Holmes another text ten minutes later: "No reply?" Balwani replied: "Awesome. You re listening and paying attention."
Holmes sent Balwani a text that same month: "Just finished calls. Alice Walton is available for 50. Confirmed 100 Greg." Alice Walton, the Walmart icon, is probably what she refers to. Greg's identity isn't clear. The Walton family invested $150 million in Theranos by 2014
Balwani replied, "Awesome. Today was the day I was thinking. They aren't investing in our company, they are investing our destiny." This was a worrying prediction considering that Theranos closed down in 2018 and that the pair were accused of orchestrating an elaborate scheme to deceive investors and patients about Theranos.
Holmes and Balwani are each facing 10 wire fraud charges and two conspiracy to commit wirefraud. Both have pleaded not guilty. Holmes' trial began last month. Balwani will be tried separately next year.
Holmes sent Balwani a message in the same text channel a few minutes later: "Rupert Over 100", referring to Rupert Murdoch, a media mogul and one of the most prominent investors in Theranos. Murdoch invested $125million in the company.
Balwani replied, "Can't wait learn more about conversation mit Rupert," Holmes replied, "Very good:)" Holmes added, "He would have met for longer."
CNBC reached Walton and Murdoch. They didn't respond. The trial will also include testimony from some Theranos investors.
These private messages total nearly 600 pages and span the period June 2011 through July 2016. According to financial reports, the texts also provide details about Holmes' and Balwani's high-flying lifestyle while Theranos was losing hundreds of millions of money.
Holmes sent Balwani a text message in March 2015: "Mary Meeker trying my best to convince me to remain private, raise huge $$$$, and go bigger."
Bond Capital partner Meeker, a well-known venture capitalist, is Meeker. Her annual Internet Trends Report, which consists of dozens upon slides that cover the most important trends for investors, is a well-known presentation in the tech sector. CNBC did not reach out to Meeker for comment.
Christian Holmes, Holmes' brother, sent Balwani a group message in April 2015 about a trip to Las Vegas. He said: "Not sure what options but from Dan : presidential suite at four season $3k, mandarin apex Suite view of strip $3400, presidential $15k or encore junior suite $700 View of golf course"
A source at Theranos said that the group was planning a weekend trip. An employee said that the time period was extremely difficult at Theranos, with many high-profile exits and the abrupt departure of Adam Rosendorff, the lab director. The cost of the trip was not covered by Theranos.
The former employee at Theranos stated that "people would disappear" and were leaving without jobs. It was obvious that Theranos was in trouble. That's a red flag.
Balwani appears to have acknowledged the trip in a series text messages, also dating back to April 2015. Holmes was text messaged by Balwani: "The Vegas trip has been such a distraction. It was bad timing. The guys purchased everything and it was non-refundable. We will accomplish it. But I don't want distractions to distract us from our victory."
Holmes responded, "Then let’s focus on that in our room, have dinner and then go back early." "I don't like distractions ever."
Holmes sent Balwani another text about high end reservations.
Balwani also said, "Got table on XS dance floor [floor]"." Balwani then told Holmes, "Getting private security to u" a few minutes later. "Private security?" Holmes responded. Holmes replied, "One dedicated security man with us all night." Balwani stated.
John Carreyrou, then a Wall Street Journal reporter, first reported the problems within Theranos in October 2015. CNBC obtained text messages that show conversations about Carreyrou among Holmes and Balwani.
Carreyrou tried to interview Holmes and Balwani, but neither of them agreed. Balwani said that he didn't need to meet with anyone who was attacking him.
Jeffrey Coopersmith, Balwani's lawyer, declined to comment. CNBC did not receive any comment from Holmes' attorneys.
