Federal prosecutors challenge Elizabeth Holmes as cross-examination begins

Theranos founder and former CEO Elizabeth Holmes along with her partner Billy Evans (R) depart the Robert F. Peckham Federal Building on November 22, 2021 in San Jose, California.
Theranos founder and former CEO Elizabeth Holmes along with her partner Billy Evans (R) depart the Robert F. Peckham Federal Building on November 22, 2021 in San Jose, California. Photo credit Ethan Swope/Getty Images

Disgraced Theranos founder Elizabeth Holmes continues to testify in her federal fraud case in San Jose, facing cross-examination for the first time on Tuesday.

"There are many things I wish I did differently," Holmes, 37, testified.

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Holmes has pleaded not guilty to 11 fraud charges for duping investors, doctors and patients for monetary gain. She could face up to 20 years in prison if convicted.

The government kicked off its cross-examination focusing on the Wall Street Journal investigation that raised questions about the blood-testing company's capabilities. Holmes denied trying to obstruct reporting on Theranos, but she said she regretted her reaction to the story and the treatment of a whistleblower.

"I could not say more strongly the way that we handled the Wall Street Journal process was a total disaster," Holmes said. "We really messed up."

In explosive earlier testimony on Monday, Holmes accused former romantic partner and ex-Theranos COO Sunny Balwani of abuse and controlling behavior. Under cross-examination on Tuesday, Holmes admitted there were times Balwani was complimentary and loving, and times when he wasn't.

At prosecutors' direction, Holmes read loving text messages sent to and from Balwani. Holmes became emotional as she did, weeping after she was asked to do so.

"U are God’s tigress and warrior. You are extraordinary," he wrote to her in 2015 messages displayed in court Tuesday.

"Coming from my tiger means the whole universe to me," Holmes responded in a subsequent text message soon after.

Balwani's trial will begin in January, after Holmes' concludes.

Federal prosectuors on Tuesday also grilled Holmes about using the Pfizer logo on a document sent to Walgreens about potential partnerships. That logo, as well as those of Schering Plough and GSK, was used without written permission.

The Associated Press contributed to this report.

Featured Image Photo Credit: Ethan Swope/Getty Images