Thread by @MilesGCohen

#ElizabethHolmes trial day 35:

Prosecutors will finally get their shot at asking Holmes questions.

She will likely be crossed for much of her fifth day of testimony.

I pulled #16 today in line after arriving before 4 a.m.

Anddd we are inside the courtroom. Holmes should retake the stand around 9 a.m. PT today, for the final day of the short trial week.

J.R. Fleurmont for the defense and Kelly Volkar for the prosecution are up in front of Judge Edward J. Davila continuing their argument about the admissibility of statements Sunny Balwani made to the SEC in a pretrial deposition.

Fleurmont is trying to establish that Balwani made some of these statements to the SEC against his personal interest, a criteria of the hearsay exception which would allow these statements in.

Prosecution also brings up rule 106 in their argument.

Volkar characterized the defense's 106 argument as an intention to, "cherrypick certain answers," from Balwani's SEC depo.

AUSA Robert leach said on his cross today he will talk about, “[Holmes'] trips to Mexico on jets paid by the company for business purposes," among other things.

This, because of what Leach sees as a 12.2 defense. (Below)

Downey said he has not committed to that defense, yet.

Davila characterized private plane travel as “normal” for CEO’s, thus an acceptable topic for Leach to bring up on cross, he said.

“CEO’s travel on private planes, they don’t travel on coach,” he explained.

"[Travel] doesn't have any relevance to the case," Downey argued, saying the prosecution seeks to offer it only for "inflammation of the jury."

But Leach said, given Holmes testimony about "vision" and "altruistic" purposes, it's relevant.

"She coveted attention," he said.

Holmes enjoyed a lifestyle as Theranos CEO, Leach said which included salary, travel, a mention of celebrities

Tense argument here between Leach and Downey.

"That might be the most aggressive reading of [a court] order," Downey said, referring to Leach's prior point

In the brief break between pretrial arguments and trial, we got another indication of the topics prosecutors plan to delve into.

A few seconds of what looked like the 2016 Today Show intvw with Holmes, just played in the courtroom.

today.com/video/theranos…

Elizabeth Holmes watched jurors as they filed into the courtroom. I saw one juror look at her, as they passed her standing on the stand.

Prosecutor Robert Leach is up at the podium.

After nearly three months of proceedings, the government will finally get their chance to question Holmes.

Leach brings up WSJ's Carreyrou who wrote the article about Theranos in fall 2015.

He referenced Holmes testimony yesterday of having an "aggressive" response when she found out about the article.

She learned about in April 2015 he was writing the article.

You were worried that mr carreyrou might go to a wellness center and get a pin prick weren’t you?

I don't remember

Leach showed texts between Holmes and Balwani on 4/21/2021, asked if they refreshed her recollection on the prior Q. "No," she said.

Wsj guy might show up tomorrow, Holmes wrote on 4/21/2015

The texts show Holmes and Balwani talking about what kind of test Carreyrou should receive. Balwani suggested venipuncture, better a perfect venipuncture than a bad finger stick he texted.

Leach asked if balwani and Holmes joked about carreyrou's heritage, then showed these texts:

Holmes: Carreyrou is French

Balwani: Very funny. explain everything

Balwani: He is proud of being French?

Holmes: I know…and proud of it…proud cynic.

Leach asked if Holmes wanted to get ahead of the article

"We wanted to make sure our trade secrets were not disclosed," she said, a theme of her direct examination

When Holmes agrees with Leach's questions she says “I think so” or “it could be” -- not "yes" or "correct"

"Extremely serious legal implications he basically violated and shared our trade secrets down to machine names," Balwani texted. "It is Tyler Ericka and Adam."

Holmes admits she knew who Ericka Cheung was at the time.

You chose not to listen to Ericka Cheung on the issues she was raising, Leach said (paraphrase)

"My understanding is we did listen to her," Holmes testified.

You chose to threaten her

No

Theranos chose to threaten her

I don’t think so

Theranos chose to threaten her with a lawsuit

I don’t think so

We are looking at the June 26, 2015 letter Theranos sent to Cheung.

"Didn't Theranos threaten Cheung with a lawsuit in June 2015?" Leach asked

"I see that here....I knew our lawyers were following up with her to make sure she didn't disclose trade secret information" she said

Leach alleged Holmes tried to dismiss Cheung as a low level disgruntled employee. Asked her if that was another thing she wished she had done differently.

"100%" she said, saying she mishandled the whole WSJ response, as she testified on direct

Now talk of former Secretary of State George Schulz -- Holmes testified she met 1-1 with him every week to get advice and attended holiday parties with him.

Leach pulled up the internal correspondence chain re the Tyler Shulz email of concerns.

Leach pointed out a bullet in Daniel Young's response to Holmes/Balwani after meeting with Shulz

"Regarding performance claims, he seemed very surprised that I asked him where he thought we claimed superior performance over other tests...." the bullet began, as Young wrote.

"The best he could come up with was saying thought the superior accuracy was mentioned in some of the articles that have been written about Theranos. I asked him to follow up and highlight these specifically for me," Young continued.

"When you have time could I possibly have half an hour to follow up on our previous meeting about the RPR Test?" Tyler Shulz wrote to Holmes on April 10, (I believe 2014.)

Leach is going line by line through Shulz follow up to Holmes, which included his specific concerns,

One line leach read out loud:

"If well established institutions such as the WSJ have published info about Theranos it seems it would be in our best long-term interest to correct this information in order to uphold our image of bringing transparency to blood testing," he wrote.

This is before the Parloff fortune mag front page article, and after the article written by Joe Rago which Holmes reviewed a draft of, Leach elicited

Balwani wrote Shulz:

"We saw your email to Elizabeth

Before I get into specifics let me share with you that had this email come from anyone else in the company, I would have already held the accountable for the arrogant and patronizing tone and reckless comments…," he wrote

Leach showed Holmes reviewed this email, which Balwani sent to Shulz.

"Stronger-- emphasize what he did first especially in light of my comment on accuracy below," Holmes wrote in a comment box in a draft of the Balwani email.

You approved this going out to Mr. Shulz before Mr. balwani sent it?

I knew it was going out, yes.

Leach alleged Holmes chose not to listen to Shulz and instead retaliated against him with a lawsuit.

That Shulz was "lured" to his grandfather's (the Secretary of State) house by Boies Schiller lawyers to sign documents.

That George Shulz called Holmes, and said there were lawyers from Boies Schiller trying to get Tyler to sign docs.

Holmes doesn't remember the specifics of the call, but admitted there may have been a call.

Holmes said George Shulz later complained about the incident.

We see texts on 5/31/2015 from Balwani and Holmes to

"You not calling George back also sends a message that we are about to suit," Balwani wrote.

"Exactly was thinking same," Holmes replied.

"Again I couldn’t say more strongly the way we handled the WSJ process...we totally messed it up," Holmes testified.

Email From Holmes to Murdoch in 9/2015

"For the purpose of keeping you in the loop, I wanted to share the attached documents with you, including a briefing document that was sent from David to Gerard at WSJ today in the hopes that Gerard might meet with our team," she wrote.

This was a month before the WSJ article came out.

Holmes testified Murdoch had a greater than $100 million stake in Theranos

Prosecutors are playing this video for the jury

Leach elicits Holmes did not tell Cramer that only 12 tests could be performed on the Edison

"Anything that happens in your company was your responsibility at the end of the day?" Leach asked

"That’s how I felt," Holmes said.

Balwani reported to you

Correct

....You could fire him at any time

Yes

"The buck stops with you?" Leach asked

"I thought that," Holmes said.

Leach is going through all of the people holmes could hire and fire in her capacity as CEO including marketers CHIAT DAY, theranos legal team, lab directors etc.

Leach is impeaching Holmes on prior testimony given to the SEC under oath

"You had six lawyers standing by your side?" Leach asked

Here we go.... page 58 of the transcript...

"you were asked the Q were you kept apprised of developments in the product area and the clinical lab. your answer was 'generally yes', isn't that correct?

"Yes," Holmes said

Leach moves subjects, says he wants to talk a little bit about how Holmes was compensated at Theranos

Wages in 2010 were about 200k?

Wages in 2011 were about 200k?

Wages in 2012 were about 200k?

Wages in 2013 were about 200k?

Wages in 2014 were about 360k?

"I don't have any reason do doubt it," Holmes said of the 2014 number. Leach proceeded to read the full number out loud -- $360,229,36.

Then in 2015 she made about $390,182, he elicited

The minilab and the 4 series were never used for patient testing is that right

Correct

The minilab and 4s were never put in the clia lab in California…arizona

Correct, correct

Leach elicited that by the time of the fall 2015, CMS inspection, Theranos wasn't using any of the Edison devices in the CLIA lab.

"On top of the 12 Edison 3.5 tests in Calif. clia lab, theranos at its peak performed an additional 58 assays on third party machines...," Leach asked.

That sounds right

For those tests you were dependent on third party equipment

Yes

In Arizona clinical labs, Holmes admits they were using ordinary blood testing machines.

Leach clarified the 8+ million # of tests Holmes testified to yesterday, as being done up until 2016.

4.5 million were done after the WSJ article in Oct. 2015.

We're on a 30 minute break.

Some observations from the first morning of cross:

Leach is measured, even demeanor.

Holmes is not defensive, agreeable.

Leach is back at the podium, Holmes at the stand.

Leach is asking questions about Holmes' relationship with Balwani.

"Fair to say your relationship with sunny was at times loving and times not so loving ?" he began.

"Yes," Holmes said.

You were often complementary and loving to him?

Yes

Leach establishes there were over 12k texts between 2011 and 2016 between Holmes and Balwani,

"Can we agree that there are many messages here where Mr. Balwani is expressing love and affection to you?" he asked

"Yes," she said

We're about to see some texts, and Leach is asking Holmes to read them out loud.

May 9, 2012 at 12:16 a.m

Missing you this business can not be built by either you or I alone... Balwani began

Holmes sounded emotional as she read these texts:

"U r god’s tigress and warrior. You are extraordinary," Balwani wrote.

"Coming from my tiger means the whole universe to me," she replied.

I love you," she wrote, as she said out loud.

"I worship you. Be yourself," he wrote, as she also said.

Then in Nov, 215

"Rupert said same thing as you and I talked about on separate R&D bucket," Holmes said.

Awesome :), Balwani said.

"I know," Holmes wrote...question: promise honest answer?

Of course. When have I not, Balwani wrote

:), holmes wrote

"Would you be ok if I saw Jesse and Laura separately in the am tomorrow, home by latest 11:15am but trying to make it by 10 a.m.?" Holmes wrote as Leach showed.

"I think it's me asking for permission to see my friends," Holmes said.

Holmes wiped her eyes with a tissue as she read what appeared to be another loving exchange w/ Balwani from early March 2015

"Is this another example of mr balwani being loving and supportive of you?" Leach asked.



"Yes," she said as she sniffled.

"What an amazing gift to meet a man I fall madly in love with," Leach read, from another text.

"That’s you expressing love and affection mr balwani,"

"Yes," she said.

Would it surprise you to learn the word love appears 594 times [in this exhibit]?

No

You ended the relationship with mr balwani

I did

You made the choice

I did

How did the romantic relationship end? Leach asked... pause.

"I think when I started to realize that this person that I believed in more than anything wasn't who he was to me, then nothing was real anymore," Holmes began.

"My whole foundation for life, what I believed in, the devotion to the company, was based on believing that he was this person that he conveyed himself to me," she continued.

“I appreciate that question Ms. holmes,” Leach said

You’ve been asked that question before, he said.

Leach read from her answer to "how did it end" to the SEC.

She does not remember telling the SEC any mention of CMS, as a reason she split from balwani

Holmes had pointed to the CMS audit and results in her direct testimony as a friction point with Balwani

"Is it true that mr balwani did not conceal from you the reality of what was happening in theranos?" Leach asked, w/ reference to the lab, and retail partnerships

....

"I didn’t think he did," she testified.

Leach is now going through Holmes iPhone notes from 4/3/2015, which she took as she talked to Balwani, she said.

He read out loud and highlighted these portions among others:

"EAH getting product done. Sunny SW. Rule world.

"Command."

And as we saw on direct:

"So angry at myself for coming. So angry spent 5 years of my life. Biggest failure of my life. Regret coming. Stayed because I love you"

"No one told responsible f**king mediocre quality of this piece of shit company."

"He's not hiding his views from you in this time period is he?" Leach asked.

"No he’s not," Holmes testified.

....

"He’s telling you about problems with theranos," asked leach.

"He's telling me about problems with me," she replied

Back to the texts Leach started with where Balwani names those he believes to be involved in the WSJ article. (Ericka Cheung, Tyler Shulz, Adam Rosendorff)

"We need a better strategy for normandy. For a long time to come we will have hybrid solutions," Balwani said.

"He’s being open about that there?" Leach asked.

"Yes," Holmes said.

"..He's not deceiving you," leach asked.

"No," Holmes said.

"You were flawless in mad money (an earlier appearance). Just perfect..If I was competing with you I would be scared…Got to get more assays on fingerstick," Balwani wrote to holmes in succession in April 2015.

Holmes agreed Balwani was not hiding the finger stick portion

There are some mentions of CVS in the texts.

Leach asked if as the WAG partnership was "slowing" in 2015, if she started to pursue a business relationship with CVS

"No," Holmes said.

April 11, 2015

I have extreme clarity on how we will win against quest and labcorp- Balwani

extreme handwork but no short cuts on this one anyway - Holmes

"For next 3 years 2015-16-17 do ..." Balwani wrote

He’s being open about his plans and ideas isn’t he?


Yes, I wouldn’t call this plan, but this idea yes.

More texts shown:

In reference to the last text in this chain Leach asked

They were your decisions too?

Yes

Because you’re the CEO?

Exactly

"Stay internally focused…the PR strategy is wrong and I’ve been saying that," Balwani texted Holmes in July 2015, as Leach read.

"Is this again mr balwani disagreeing with you about the pr strategy that you were implementing?"

"Yes."

Balwani raised issues, spoke openly, and did not hide issues in the CLIA lab in one text exchange in 5/9/2012, Leach elicited from holmes

Need to focus on ops. Getting hurt in market - Balwani

Customer service seems to be terrible everyone complaining - Balwani

Hes not hiding/concealing that from you?

"He’s Definiltey not hiding anything from me," she said. "In this text.”

YOU wrote, leach said with emphasis on you, as he read this text:


“fundamentally we need to stop fighting fires by not creating them," Holmes texted Balwani in Nov 2014.

"You’re also raising money," Leach said of this Nov, 2014 period.

11/27/2014

“We need to lock on a billion or more now so we have leverage over both. And time to operationalize normadhy and…Dday," Balwani wrote. (Dday a reference to phase 2 of Walgreens rollout)

Leach has been reading from Holmes / Balwani texts for at least an hour now.

That may be a significant underestimate...

FDA conducted an unexpected, unannounced inspection of both AZ and Calif. labs around Aug, 2015, Holmes said

While this inspection is going on you texted back and forth with balwani ...you spoke openly...he didn't hide what the fda was saying to him..." leach said.

The texts:

Dan is a reference to a lawyer theranos hired to deal with FDA, Holmes said.

"You're expressing a view hear that Dan calling someone at the top of the FDA might ruffle feathers?" Leach asked.

"Yes," Holmes said.

"Balwani is expressing concerns that you might need to change some of the language on the website..." Leach asked

Leach gets Holmes to testify Balwani was being open and not hiding that info

Leach gets Holmes to testify they stopped using the nanotainer b/c of FDA concerns

Onto the CMS inspection, which Holmes also corresponded w/ Balwani about, leach said

A couple hours after Balwani told Holmes "very hostile so far they have complaints," Holmes wrote "praying literally non stop," she wrote on 5/22

Now Leach is showing this 4/7/2015 text from Holmes to Balwani.

"Does this refresh your recollection that you're talking about Walgreens here with Mr. balwani?" Leach asked.

"It doesn't," Holmes said.

Then this from two days later

Aug. 15, 2014 email From Nimesh Jhaveri, a prior Walgreens witness

Balwani forwards it to Holmes.

“It will be important that we drive with a single focus together. The 2 areas which must be focused on are

Patients per day with a 4+ experience
Venous percent in the 10% range"

“We can discuss this today. Gives us HUGE opening for what we want to do," Balwani wrote to Holmes.

Not hiding from you info he’s getting from Walgreens

No

[Balwani] reported directly to you correct

He did

He was the COO and the president

Yes

And you were the CEO

That’s right

And he was an at will employee

He was

You could fire him at any time

I could

Taking our afternoon break now. When we return Leach said he will move to a new topic.

Would you agree, there were aspects of your business relationship where mr balwani deferred to you?

I'm sure there were

Would one of those areas be Safeway?

it's possible.

From holmes SEC depo, as Leach read

"if it pertained to Walgreens it was sunny, if it pertained to Safeway, probably me...," Holmes said, per who was dealing with the retailers

Balwani "probably," deferred to Holmes on dealings with the military, she testified.

"I would like to COMPLETELY disengage myself from all things Chiat day so you and the guys can manage all that is asked from them...," Balwani wrote to Holmes in May 2013.

You were also very close to Channing Robertson...You felt like you could go to him on any aspect of Theranos business

similar questions re Secretary George Shulz

similar questions re Secretary Henry Kissinger

Holmes agrees

Now general Mattis...

"Is it true that in July of 2013 you and Mr. Balwani agreed to form a limited liability company together?" Leach asked.

"I think so, yes," Holmes said.

"One of the purposes of this LLC was to own the home where you and Mr. Balwani lived?" Leach asked.

"Yes," Holmes said.

We are looking at the operating agreement of "HMFR LLC"

The name, a reference to prayer / god, Holmes said.

Signed by both Balwani and Holmes.

Leach just offered a picture of the home Holmes and Balwani shared into evidence

Downey objects

The address is already in evidence... 227 Park Lane Atherton CA 94027

Davila lets the images of the house in.

The house is listed on realtor.com, with the same image.

realtor.com/realestateandh…

Is it true that you were away from Mr. Balwani for large periods of time during the 2010 and 2015 time periods

yes

you traveled on business regularly

yes

...w/o balwani on many if not most of those occasions

certainly on many

Am I right you were also involved in another romantic relationship during the time 2010 and 2015

no

...Holmes corrects her statement, said she didn't hear the first date of 2010.

"It was not actually a formal relationship," she said.

We are looking at an email from Holmes to Kate Beardsley — a lawyer she said she hired to review Theranos' marketing materials — on Sept. 5, 2013.

She forwarded a copy of theranos' website around the time of the Walgreens launch.

"I haven't quite worked my way through the whole website, but I'm worried," she wrote. "Unless someone else has worked through this with you, the whole thing needs to be carefully reviewed.

Here are a few of the general issues that need to be discussed:"

She went on to list several, including some comparative claims and Holmes' use of the word "better" w/o specifying

I should say Theranos' use, not Holmes use.

Another email from Beardsley to other lawyers brought in to review the site by Theranos

"This is the theranos website that needs to be reviewed. It is scheduled to go live tomorrow night so there is some urgency," she wrote her colleagues.

One of them replies, with "comments to the Theranos' website"

"Please remove references to "all tests" and replace with statements such as "multiple" or "several" it is highly unlikely that the lab can perform every conceivable test...," the lawyer wrote in one comment.

"Replace highest levels of accuracy to high levels of accuracy," is another.

The government also presented this email in their case-in-chief

(The email was forwarded to Holmes)

The comments were received on the eve of the public launch of the Theranos website, Holmes confirmed.

"I showed them to Christian and Sunny, yes" she said.

Leach said he will now run through some of the investor PowerPoints.

We are looking at one that went to Brian Grossman of PFM in Jan. 2014, 3-4 months after Walgreens launch and 3-4 months after Holmes received the comments on website from attorneys, leach elicited.

"A New Standard in Quality"

"The highest levels of accuracy"

reads one slide

Now a powerpoint that RDV's Lisa Peterson testified to, the DeVos family investment manager.

"Theranos is certified as a High Complexity CLIA laboratory," is one title of a slide Leach showed.

"This was part of the way you persuaded [investors] theranos' tech was accurate?"

"Part of the reason I believed in our technology, yes."

Theranos Proficiency Testing And Audits is another slide

There are nine "Agency survey[s]" listed

-You never told investors [this] had 0 to do with Edison did you?

(missed this answer)

-Had 0 to do with the modified Siemens machines?

"No I don’t think we discussed this slide."

-You didn’t talk about modified Siemens machines with any investors?"

"No I did not."

Before some date in 2015, Holmes has no memory of Daniel Young being present at investor presentations, she testified.

"His job was to run R&D not investor relations?" Leach asked.

"Correct," Holmes said.

Leach pulls up this email, after WSJ came out with their 2015 article -- a question from a board member to Holmes about what exactly they were testing and on what.

Consistent with other Q's Holmes said she fielded from board members at the time.

Leach points out Holmes did not use the names of the third party machines she said on direct Theranos was using

This was another thing you wished you did differently?

...there are many things I wish I did differently"

(Holmes response below)

Leach confronts Holmes on the Pfizer logo:

Do you agree with me this document is not from Pfizer - Leach

No its from theranos - Holmes

...And you put the Pfizer logo on this - Leach

I did - Holmes

You did not seek Pfizers permission to do that - Leach

Idk - Holmes

No-one from Pfizer authorized you to do that

Again I don’t know I can’t remember doing this

Do you agree with me this is not an independent due diligence report

I thought it was

Sitting here today do you agree with me this is not an independent due diligence report

I still think it was

Holmes admitted she deleted the words “Prepared for Dr. Aidan power Pfizer inc" from the report she put Pfizer's logo on

Leach asked if this might make it easier for a reader to garner that the report was prepared by Pfizer, if this was another thing she wished she had done dif

Leach is now going through the 2009 and 2013 emails from Pfizer to Theranos, which Holmes testified about on direct examination, which showed continued correspondence with the Pharma company despite their initial rejection of her tech

"Hi Elizabeth, it has been YEARS since we last touched base, but you have clearly been busy," Pfizer's Craig Lipset wrote to Holmes on Feb 20, 2015

-In the 2015 email it does not say… “Pfizer has validated theranos tech”

Correct

-….Comprehensively validated theranos tech

Yes

-….Authorize you to affix the Pfizer logo to documents

Correct

On to Schering-Plough the other major Pharma company whose logo Holmes affixed to a report prepared by Theranos.

Same Q's as he asked her about the Pfizer report

Holmes does not have a memory of getting permission to place the logo on the report, she testified.

Holmes also admits she added these words to the Schering-Plough report

Schering Corporation
Schering Plough Research Institite
Assay Development Report
Theranos Systems Multiplexed...

Read up on the reports, and Holmes reveal during her direct testimony about placing the logos on the reports:

abcnews.go.com/US/theranos-fo…

Holmes also added some words in the Schering-Plough report's conclusion section

Onto a GSK report, which Holmes said she "assumes" she also added a logo to, before sending to Walgreens (Below)

Did you receive any permission rom GSK to add that logo?

idk

On the same GSK report, someone deleted a bullet about fingerprick problems before holmes sent it to Theranos. (she did not say she made change)

Did you ever tell theranos you can't have the slightest negative comment on what's going out to our partners?

I don't think so

Sent it to Walgreens*

Leach pointed to language in a contract w/ one of the Pharma companies (GSK or Pfizer) which said "neither party will use, or authorise others to use, the name, symbols or marks of other party..."

If someone was using your logo without ur consent you would have been angry about that?

It depends on the context…

Now an email exchange between Holmes and one of her product manager's Dan Edlin who testified earlier in trial.

June 1, 2014 "Roger Parloff aggregated action items"

Holmes attached one of the doctored reports -- the one with the Schering-Plough logo on it

She said she doesn't remember telling Dan Edlin about placing the logo on the report, nor telling Edlin to tell Parloff that, she testified.

And now another email between Holmes and Edlin with info to give Parloff. On the same day, A Pfizer report is attached, a reply to an earlier email she sent to edlin:

"What can be disclosed is devices

Decentralizable

Will decentralize

Will maintain centralized oversight"

"You were being very careful about your word choice weren’t you ms holmes?" Leach asked

he referenced her use of future tense, asked her if its an example of her being "extraordinarily careful."

"Idk looks like notes or something to me," she said.

"Isn’t it true that you needed capital in Sept. of 2013 and again in Dec. of 2013," Leach asked, changing topics.

"Yes," she said.

Leach is showing some examples, Holmes' is not pushing back

"I think you're right," she said in response to one question.

(BTW leach is going through a financial spreadsheet — the origin of the numbers he's throwing at Holmes)

While Leach leafed for the right exhibit to hand Holmes, she held her gaze on him at the podium.

She thanked him when he walked over and handed her the document.

"HMFR," Balwani responded to an email Holmes forward him about the finalization of in investment in Sept. 2013.

"[The] Cash crunch didn’t end here...?" Leach asked.

"Again, I didn’t think about it that way," Holmes replied.

11/28/2013 texts between Holmes and Balwani

We are at 15m as of today…Free cash - Balwani

I saw that…Drop by to discuss when u can - Holmes

Recessing for the day and for the week.

Holmes will be back on cross when we return on Dec. 7,

Sounds like we will be in session Dec. 7-8-9-10

"The defense case will not last the balance of next week," Defense attorney Kevin Downey said.

Lawyers are planning a time to discuss jury instructions, for when this wraps.

10-minute break, and then parties will return to discuss the admissibility of sunny balwani's deposition testimony.

Jeff Coopersmith, Balwani's attorney is here and ready to litigate, defense counsel said

And after the "10 minute" break we're back.

Jeff Coopersmith has entered the litigating floor.

Fleurmont poses a question to the "young man," as Davila put.

"If we were to call Mr. Balwani in this case, would he be available to testify?

Coopersmith said under the circumstances, Balwani would assert his fifth amendment rights on any substantive topic.

"Do you wish to cross examine Mr. Coopersmith?" Davila asked U.S. Attorney Kelly Volkar.

"I respectfully decline, your honor," she joked.

Some laughs

ok cool," Fleurmont said to the judge, after Davila told him he understood his argument.

"Excuse me," the defense attorney quickly said, catching his casual comment.

"no it is cool," Davila said.

Volkar wraps up her argument by noting Balwani and Holmes had a complicated relationship, and that they haven't heard Balwani's side of the story.

A possible "motive of love," she said.

"I'm probably going to grant the motion as to some portions," Davila said, adding he would limit others, as to the motion to admit Balwani's SEC depo testimony on financial models.

We're out of here for the day. See you all next Tuesday