James Mattis, Who Sat on Theranos Board, Testifies in Elizabeth Holmes Trial

SAN JOSE, Calif. — James Mattis, the retired four-star Marine Corps common and former protection secretary, testified on Wednesday on the fraud trial of Elizabeth Holmes, the founding father of the blood testing start-up Theranos, that she misinformed him earlier than and through his time on the corporate’s board of administrators.

Mr. Mattis, who served on the board for a number of years, mentioned he had supported the start-up’s mission of low cost, quick and simply accessible blood exams however misplaced religion after The Wall Avenue Journal uncovered main points with the know-how in 2015. It turned clear to him, he mentioned, that Ms. Holmes had not been forthcoming with Theranos’s administrators in regards to the issues.

“We have been unable to assist her on the basic points that she was grappling with if we solely noticed them in the rearview mirror,” Mr. Mattis mentioned. He resigned from the board in late 2016 after President Donald J. Trump tapped him to develop into protection secretary.

Two years later, Theranos collapsed amid lawsuits, fines and monetary troubles, and federal prosecutors charged Ms. Holmes and her enterprise associate, Ramesh Balwani, with a dozen counts of fraud and conspiracy to commit wire fraud. Each have pleaded not responsible. If convicted, they withstand 20 years in jail.

Mr. Mattis is probably the most outstanding particular person to take the stand so far in the high-profile jury trial, which started in August. Different potential witnesses embody Rupert Murdoch, the media mogul, who invested in Theranos; David Boies, who was the corporate’s outdoors lawyer; and Invoice Frist, a former senator and Theranos board member.

As Mr. Mattis spoke, Ms. Holmes sat upright in her seat and stared in his path.

Mr. Mattis testified that he met Ms. Holmes after a speech he delivered in 2011. He was excited by the prospect of the navy’s utilizing Theranos’s blood analyzers, which Ms. Holmes claimed might carry out hundreds of various exams quicker, cheaper and extra precisely than conventional lab exams, utilizing solely a finger stick of blood. Mr. Mattis was additionally impressed by Ms. Holmes personally, he mentioned, describing her as “sharp, articulate, dedicated.”

Mr. Mattis mentioned he had pushed the navy to do a check program of Theranos analyzers to see how they carried out alongside its present techniques earlier than becoming a member of the board. “I needed a comparative research on Theranos from Day 1 so we might carry it on-line,” he mentioned. However no check materialized.

When Mr. Mattis joined the board, he invested $85,000 in Theranos as a present of assist, which he mentioned was a big sum “for somebody who had been in authorities service for 40 years.” He additionally recused himself from any navy contracts for moral causes.

He testified that he was not conscious of any contracts between Theranos and the navy, a serious declare in the prosecution’s case in opposition to Ms. Holmes. She had advised traders that Theranos gadgets have been used on battlefields in Afghanistan.

Mr. Mattis mentioned Ms. Holmes had been his major supply of details about Theranos and its know-how. Prosecutors confirmed a presentation she had made to the board that mentioned 10 of the 15 largest pharmaceutical firms had validated the start-up’s machines, alongside endorsements from researchers at Johns Hopkins College and the logos of the Meals and Drug Administration and the World Well being Group.

Such displays gave Mr. Mattis confidence in Theranos’s know-how, he mentioned, as a result of “it wasn’t simply Elizabeth speaking about it.”

After The Journal reported that Theranos was performing just a few blood exams on its personal machines whereas doing the remainder with conventional blood analyzers, the board scrambled to gauge the report’s accuracy, in accordance with emails launched as proof.

Ms. Holmes emailed that Theranos was making a transition to a unique “framework” for its laboratory. Mr. Mattis mentioned he was confused and anxious, however supported Ms. Holmes as a result of he thought the issue was only a matter of messaging.

“I assumed it was one thing we might repair if we received the reality on the market,” he mentioned.

Over time, Mr. Mattis mentioned, he misplaced hope as he discovered that the issues went deeper — that Theranos’s machines simply didn’t work.

“There simply got here some extent after I didn’t know what to consider about Theranos anymore,” he mentioned.

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