Home » Lifestyle » Elizabeth Holmes' $4.5B fortune, luxury lifestyle 'created powerful motive' for fraud, prosecutors say
Elizabeth Holmes' $4.5B fortune, luxury lifestyle 'created powerful motive' for fraud, prosecutors say
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Prosecutors working the fraud case against blood-testing startup Theranos founder Elizabeth Holmes have fired back at the defense’s claim that her wealth and social standing are not relevant to the crime scheme, arguing that her six-figure salary, billion-dollar stake in the company and jet-setting lifestyle were motivating factors behind the alleged lies, court papers show.
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The government submitted the opposition to Holmes’ attorneys’ motion through the Northern District of California’s San Jose division, where the case is being carried out, as part of a Friday document dump, when prosecutors and the defense filed 22 documents in connection with the case.
In this particular file, prosecutors argued against the defense attorneys’ request that the government exclude details about “the benefits she obtained from her successful schemes to defraud” – specifically, her “wealth, spending, and lifestyle.”
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“Those benefits – including direct financial gain, great wealth in the form of stock holdings, fame and admiration in the business and technology communities, and access to various prerequisites through the resources of Theranos itself – constituted Defendant’s motive to engage in her schemes to defraud investors and patients,” court papers state. “Before Defendant’s fraud came to light, she received numerous benefits, notably including a six-figure salary and an ownership stake in Theranos that was valued at up to $4.5 billion.”