The author of “Bad Blood” hasn’t finished telling Theranos’ story.
Three years after the release of his bestselling book, John Carrerou is launching a new podcast to uncover the final chapter of former Theranos CEO Elizabeth Holmes. “Bad Blood: The Final Chapter” will follow Holmes’ upcoming trial.
In an interview with CNBC, Carreyrou shared his bold predictions on his criminal fraud trial, which is set to begin in August after several delays due to the coronavirus pandemic and her unexpected pregnancy. Despite the postponement, Carrero predicted that Holmes would be convicted of wire fraud, adding that a guilty verdict in his trial would be “the major shot across the bow to entrepreneurs in Silicon Valley”.
“The message will be that you can’t really do anything you want, you can’t completely ignore rules and regulations. You can’t poke your nose at regulators and officials,” Carrerou said.
He warned that a not-guilty verdict would set a dangerous precedent among start-up CEOs. “Young entrepreneurs will say ‘Look what happened to Elizabeth Holmes, and she didn’t go to jail for it.'” Carrerou says, “It’s going to take a guilty verdict in this case to definitely do the right thing.”
Holmes and Ramesh “Sunny” Balwani ran the now-defunct blood-testing start-up Theranos as CEO and president — and for a time, girlfriend and boyfriend.
The two will face separate criminal jury trials in which they lied to patients and doctors while siphoning off investors with millions of dollars. Both Holmes and Balwani have pleaded not guilty.
Carrero told CNBC that a large part of Holmes’ defense strategy may be to blame Balwani. He predicts that Holmes will take the stand and tell the jury that Balwani “held him in his psychological grip, that he was an abusive lover.”
CNBC reached out to the lawyers of Homes and Balwani. He did not return calls for comment.
Holmes plans to call a psychologist who specializes in relationship trauma as a witness. Carreyrou, who spent years reporting on what happened inside Holmes and Theranos, says he doesn’t buy defense.
“Based on all the interviews I did for my book and additional interviews I did for the podcast, it’s clear that they ran this company and allegedly perpetrated this fraud as a couple,” he said. They said.
“When they didn’t agree on something he had the last word,” Carrerou said. “So it becomes hard for me to believe that she was in his psychological grip and had no will of her own.”
Watch the video to hear more from Carreyrou on his test predictions, the new evidence he’s gleaned, and more on his upcoming podcast.