Inside the courtroom of Theranos' Elizabeth Holmes trial — Transcript

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1. 0:02welcome back to squawk box former
2. 0:03theranos ceo elizabeth holmes is on
3. 0:06trial defending herself against 12
4. 0:07counts of wire fraud and conspiracy to
5. 0:09commit wire fraud cnbc has obtained
6. 0:12thousands of private text messages
7. 0:13between holmes and her co and then
8. 0:16boyfriend
9. 0:17sonny balwani now let me get straight
10. 0:18over to cmbc producer yazmin koram who's
11. 0:21been in the courtroom every day of this
12. 0:23trial and obtained these text messages
13. 0:24so
14. 0:25tell us what's in them
15. 0:28andrew i obtained thousands of text
16. 0:31messages between elizabeth holmes and
17. 0:34sonny balawani these texts and skype
18. 0:36messages span from 2011 to 2016 which we
19. 0:40know is when their relationship both
20. 0:42personally and professionally ended when
21. 0:45he left theranos let me paint a picture
22. 0:48of what these text messages show about
23. 0:50elizabeth holmes they show she was a
24. 0:52very confident ceo let's take the first
25. 0:55example from 2014. elizabeth holmes
26. 0:58texts sonny balwani total confidence in
27. 1:01myself best business person of the year
28. 1:05sunny responds to her awesome you are
29. 1:08listening and paying attention
30. 1:10another example elizabeth is boasting
31. 1:13about the money that's flowing in from
32. 1:15the theranos investors she texts sonny
33. 1:18just finished calls alice walton in for
34. 1:2150. alice walton is of course of the
35. 1:23walmart fame the wallen family ended up
36. 1:26investing about 150 million dollars into
37. 1:29theranos sonny responds to this text
38. 1:31message they are not investing in our
39. 1:34company they are investing in our
40. 1:36destiny that of course is a much
41. 1:38different destiny than what ended up
42. 1:40happening as you mentioned they're
43. 1:42fighting a dozen charges very serious
44. 1:44charges and potential prison time i do
45. 1:47have to add that i did reach out to
46. 1:49attorneys for balwani and attorneys for
47. 1:51homes
48. 1:52they declined to come
49. 1:54okay so yasmine what does this tell us
50. 1:56though about
51. 1:58her
52. 1:59and her defense
53. 2:01uh case
54. 2:03in terms of how she's trying to going to
55. 2:05want to paint herself does this help or
56. 2:06hurt her
57. 2:09you know it could go both ways this
58. 2:12these text messages paint a picture of
59. 2:14elizabeth holmes that we all knew a cool
60. 2:16confident ceo but i have to tell you
61. 2:19andrew that it's completely different
62. 2:21than the elizabeth holmes we are seeing
63. 2:24inside and outside this courthouse i've
64. 2:25been covering this case for three years
65. 2:28and she has been silent we throw her
66. 2:30questions outside as she's walking in
67. 2:32she ignores all of them in fact i've
68. 2:34jumped in the elevator with her and her
69. 2:36attorneys before and tried to chat her
70. 2:38up and she doesn't say anything their mo
71. 2:41is clearly to keep her silent which is a
72. 2:43complete contrast to the elizabeth
73. 2:46holmes you and i saw just years ago
74. 2:48making the media rounds appearing on
75. 2:50every magazine appearing on these
76. 2:52television networks it really begs the
77. 2:54question
78. 2:55who is the real elizabeth holmes andrew
79. 2:59yes
80. 3:00are there does
81. 3:01the timeline go to the point where any
82. 3:03of the text messages say
83. 3:06wait a minute
84. 3:07you're telling me that this doesn't work
85. 3:09and and that the the entire technology
86. 3:12that we've built the company on
87. 3:14is a is a fraud is there anything like
88. 3:16that i mean confidence is great but
89. 3:19is there any uh
90. 3:21indication that she knew that it was all
91. 3:24built on a house of cards none of it was
92. 3:26real
93. 3:27none of that
94. 3:29they they do they do talk about some
95. 3:32issues with their edison blood testing
96. 3:35technology
97. 3:36they don't text about anything related
98. 3:38to fraud but they do mention about
99. 3:40issues within the company they mention
100. 3:43about some exits of employees they
101. 3:45mentioned about some turmoil within the
102. 3:47company they talk about the former wall
103. 3:50street journal reporter john kerry
104. 3:52and him you know getting uh talking to
105. 3:55these employees within the company and
106. 3:57how they can squash that they do bring
107. 4:00up these issues
108. 4:03it doesn't or maybe the ceo didn't know
109. 4:05that the technology didn't work is that
110. 4:07that would be my defense i guess
111. 4:09i don't know there there is the paper
112. 4:12trail that showed that she was aware the
113. 4:14government hasn't
114. 4:16there's nothing in the text that betrays
115. 4:18the idea that she
116. 4:21is nervous at any point or anxious at
117. 4:23any point that the technology isn't
118. 4:25working or that they have to use these
119. 4:27other testing machines to verify
120. 4:30um or in some cases just do the test
121. 4:33unto itself
122. 4:36yeah there's again there's text messages
123. 4:38that show that you know they were that
124. 4:40they were worried there's one that
125. 4:42he sends to elizabeth that actually came
126. 4:44out in you know uh government testimony
127. 4:47that said that that said the normandy
128. 4:49lab is a expletive disaster so they knew
129. 4:52that there were issues definitely
130. 4:54yasmine i've seen some of the texts too
131. 4:56and
132. 4:57you know the defense that we've heard at
133. 4:58this point is that you know sonny
134. 5:00balwani was the one who was controlling
135. 5:02things and that
136. 5:03she was under his thumb with some of
137. 5:05those things the texts that i've seen
138. 5:06certainly didn't bolster that case
139. 5:10yeah it definitely does and that is
140. 5:12going to be probably one of their
141. 5:14defense strategies we all saw the
142. 5:16bombshell uh
143. 5:17documents that were unsealed a few weeks
144. 5:19ago elizabeth holmes is claiming some
145. 5:21very serious things she said that sonny
146. 5:23balwani
147. 5:24abused her both mentally and
148. 5:27physically it's allegations that sunny
149. 5:30bolwani categorically denies i looked
150. 5:33through you know 600 pages of these text
151. 5:35messages and what i saw were text
152. 5:37messages between two individuals who
153. 5:39were in a relationship but again these
154. 5:42messages are only one piece of the
155. 5:43puzzle and as you guys know this is a
156. 5:46very big puzzle and it's gonna put if
157. 5:48elizabeth does take the stand it's going
158. 5:51to be a monumental moment because we
159. 5:52really have not heard from elizabeth
160. 5:55holmes you know her side of the story
161. 5:59shepard smith here thanks for watching
162. 6:01cnbc on youtube