AFP

Elizabeth Holmes ex-boyfriend convicted of Theranos fraud

A top aide and ex-boyfriend of fallen Theranos founder Elizabeth Holmes was convicted on Thursday of defrauding investors and patients at the failed blood testing startup.

Jurors found Ramesh “Sunny” Balwani guilty on all 12 fraud counts charged by federal prosecutors, a spokesperson at the courthouse in the Silicon Valley city of San Jose told AFP.

He is to be sentenced on November 15 and faces the potential for prison time as well as cash fines. The judge set his bail at $750,000 to insure he shows up for sentencing.

Balwani was tried separately from one-time US biotech star Holmes, whose trial in the same California courtroom ended in January with guilty verdicts on four counts of tricking investors into pouring money into what she claimed was a revolutionary blood testing system.

But the jury — who had listened to weeks of sometimes complex evidence — also acquitted her on four charges and could not reach a verdict on three others.

Holmes could also be hit with prison time when she is sentenced on September 26. She has filed an appeal asking that her convictions be tossed.

During her trial, Holmes alleged that Balwani was emotionally and physically abusive during their romantic relationship — claims he has denied. She also painted Balwani as a controlling force at Theranos.

Holmes and Balwani are rare examples of tech executives facing charges over a company’s flame-out, in a sector littered with the carcasses of failed startups that once promised untold riches.

Her trial shined a spotlight on the blurred line between the hustle that characterizes the industry and outright criminal dishonesty.

US prosecutor Robert Leach told jurors in a federal courthouse in San Jose that Balwani piloted the firm alongside Holmes and that the pair were “partners in everything, including their crime.”

But 57-year-old Balwani’s attorney Stephen Cazares said his client never committed fraud, and was convinced of Theranos’s potential.

Balwani, nearly two decades Holmes’s senior, was brought in to help steer the company she had founded in 2003 at just 19 years old.

Holmes, now 38, would go on to promise self-service testing machines that could run an analytical gamut cheaply and on just a few drops of blood — a pledge shattered under fraud allegations.

Prosecutors alleged Holmes and Balwani were aware the technology did not work as advertised, but continued to promote it as revolutionary to patients and the investors who pumped money into the company.

As Theranos soared, it attracted luminaries such as Rupert Murdoch and Henry Kissinger, but a series of reports casting doubt on the firm’s claims from Murdoch’s own Wall Street Journal set the company’s collapse in motion.

Elizabeth Holmes ex-boyfriend convicted of Theranos fraud

A top aide and ex-boyfriend of fallen Theranos founder Elizabeth Holmes was convicted on Thursday of defrauding investors and patients at the failed blood testing startup.

Jurors found Ramesh “Sunny” Balwani guilty on all 12 fraud counts charged by federal prosecutors, a spokesperson at the courthouse in the Silicon Valley city of San Jose told AFP.

He is to be sentenced on November 15 and faces the potential for prison time as well as cash fines. The judge set his bail at $750,000 to insure he shows up for sentencing.

Balwani was tried separately from one-time US biotech star Holmes, whose trial in the same California courtroom ended in January with guilty verdicts on four counts of tricking investors into pouring money into what she claimed was a revolutionary blood testing system.

But the jury — who had listened to weeks of sometimes complex evidence — also acquitted her on four charges and could not reach a verdict on three others.

Holmes could also be hit with prison time when she is sentenced on September 26. She has filed an appeal asking that her convictions be tossed.

During her trial, Holmes alleged that Balwani was emotionally and physically abusive during their romantic relationship — claims he has denied. She also painted Balwani as a controlling force at Theranos.

Holmes and Balwani are rare examples of tech executives facing charges over a company’s flame-out, in a sector littered with the carcasses of failed startups that once promised untold riches.

Her trial shined a spotlight on the blurred line between the hustle that characterizes the industry and outright criminal dishonesty.

US prosecutor Robert Leach told jurors in a federal courthouse in San Jose that Balwani piloted the firm alongside Holmes and that the pair were “partners in everything, including their crime.”

But 57-year-old Balwani’s attorney Stephen Cazares said his client never committed fraud, and was convinced of Theranos’s potential.

Balwani, nearly two decades Holmes’s senior, was brought in to help steer the company she had founded in 2003 at just 19 years old.

Holmes, now 38, would go on to promise self-service testing machines that could run an analytical gamut cheaply and on just a few drops of blood — a pledge shattered under fraud allegations.

Prosecutors alleged Holmes and Balwani were aware the technology did not work as advertised, but continued to promote it as revolutionary to patients and the investors who pumped money into the company.

As Theranos soared, it attracted luminaries such as Rupert Murdoch and Henry Kissinger, but a series of reports casting doubt on the firm’s claims from Murdoch’s own Wall Street Journal set the company’s collapse in motion.

Elizabeth Holmes ex-boyfriend convicted of Theranos fraud

A top aide and ex-boyfriend of fallen Theranos founder Elizabeth Holmes was convicted on Thursday of defrauding investors and patients at the failed blood testing startup.

Jurors found Ramesh “Sunny” Balwani guilty on all 12 fraud counts charged by federal prosecutors, a spokesperson at the courthouse in the Silicon Valley city of San Jose told AFP.

He is to be sentenced on November 15 and faces the potential for prison time as well as cash fines. The judge set his bail at $750,000 to insure he shows up for sentencing.

Balwani was tried separately from one-time US biotech star Holmes, whose trial in the same California courtroom ended in January with guilty verdicts on four counts of tricking investors into pouring money into what she claimed was a revolutionary blood testing system.

But the jury — who had listened to weeks of sometimes complex evidence — also acquitted her on four charges and could not reach a verdict on three others.

Holmes could also be hit with prison time when she is sentenced on September 26. She has filed an appeal asking that her convictions be tossed.

During her trial, Holmes alleged that Balwani was emotionally and physically abusive during their romantic relationship — claims he has denied. She also painted Balwani as a controlling force at Theranos.

Holmes and Balwani are rare examples of tech executives facing charges over a company’s flame-out, in a sector littered with the carcasses of failed startups that once promised untold riches.

Her trial shined a spotlight on the blurred line between the hustle that characterizes the industry and outright criminal dishonesty.

US prosecutor Robert Leach told jurors in a federal courthouse in San Jose that Balwani piloted the firm alongside Holmes and that the pair were “partners in everything, including their crime.”

But 57-year-old Balwani’s attorney Stephen Cazares said his client never committed fraud, and was convinced of Theranos’s potential.

Balwani, nearly two decades Holmes’s senior, was brought in to help steer the company she had founded in 2003 at just 19 years old.

Holmes, now 38, would go on to promise self-service testing machines that could run an analytical gamut cheaply and on just a few drops of blood — a pledge shattered under fraud allegations.

Prosecutors alleged Holmes and Balwani were aware the technology did not work as advertised, but continued to promote it as revolutionary to patients and the investors who pumped money into the company.

As Theranos soared, it attracted luminaries such as Rupert Murdoch and Henry Kissinger, but a series of reports casting doubt on the firm’s claims from Murdoch’s own Wall Street Journal set the company’s collapse in motion.

Mississippi clinic at heart of US Supreme Court's abortion reversal closes

Mississippi on Thursday became the latest US state to outlaw abortion after last month’s Supreme Court ruling revoking protection for the procedure, leading to 11th-hour confrontations outside a clinic in Jackson.

Alternately thrilled or furious, opponents and supporters of abortion rights gathered outside Jackson Women’s Health Organization, the facility at the heart of the United States Supreme Court’s decision stating access to pregnancy termination is not a constitutional right. 

Nicknamed the Pink House because of the building’s colorful walls, Jackson Women’s Health performed its final abortions Wednesday and saw its last consultation patients Thursday ahead of its closure.

Brandishing signs reading “Love God with all your heart, soul, strength and mind,” dozens of abortion rights opponents greeted the final trickle of patients with music and shouted prayers.

On the opposite side of the gathering, abortion rights advocates answered with placards referencing the poor southern state’s high maternal death rate to ask, “Why do you care more about hypothetical lives than real ones?” and others proclaiming “Abortion is health care.”

Cheryl Hamlin, one of the doctors who had until Thursday worked at Jackson Women’s Health, vehemently took the anti-abortion protesters to task outside the pink building, accusing them of not respecting women’s rights.

In recent years, Jackson Women’s Health was the only place to offer abortion care in religiously conservative Mississippi. That status left the clinic as the logical organization to take legal action when state legislators passed a law restricting abortion in 2018.

The case eventually made its way to the nation’s high court, which on June 24 overturned its own landmark 1973 Roe v Wade ruling that had enshrined the constitutional right to an abortion in federal law. 

Thirteen states, anticipating the seismic shift by the court, had already passed trigger laws to ban abortion, which were designed to take effect immediately after the overturning of Roe.

Approximately seven of them have so far successfully banned abortion entirely, but legal battles have delayed the end date in states such as Louisiana.

Mississippi’s 2007 law, which went into effect on Thursday, carries penalties of up to 10 years in prison for violations, and provides exceptions only in cases of danger to the life of the mother — but not for rape or incest.

Diane Derzis, the owner of Jackson Women’s Health, now plans to move to Las Cruces, New Mexico, which “for the time being is a very receptive state. We’ve been welcomed,” she told NPR public radio.

Other clinics are also in the process of relocating to New Mexico or Illinois, but, Derzis added she was concerned there would not be enough facilities to handle the influx of patients from the South crossing state lines to seek abortions.

“I’m not sure we’re ready for it,” she said.

Ultimately abortion access is expected to disappear in about half of the country’s 50 states.

Russia grinds towards Sloviansk, Putin threatens bigger offensive

Russian forces left a trail of destruction Thursday, seeking to push deeper into the eastern Donbas region as President Vladimir Putin said his military campaign was still ramping up.

Diplomatic tensions meanwhile mounted between Ankara and Kyiv, with Ukraine accusing Turkey of ignoring calls to seize Ukrainian grain being transported by a Russian ship.

A Russian air strike in the eastern Ukrainian industrial city of Kramatorsk left at least one dead and several others wounded earlier in the day, as Russian troops fight for full control of the surrounding Donbas.

The explosion left a gaping crater next to a hotel and residential buildings and several cars were on fire, AFP journalists said, as emergency services arrived on the scene.

It came ahead of a speech by Putin to lawmakers in which he said “everyone should know that we have not started in earnest yet.”

He also sounded a note of menace towards the West, telling the alliance that has coalesced against his invasion of Ukraine that if they wanted to defeat Russia on the battlefield “let them try”.

The head of Ukraine’s battled-scarred Donetsk region, Pavlo Kyrylenko, announced before the strike on Kramatorsk that Russian bombardments had killed at least seven people over the past 24 hours.

The fatalities came after Ukrainian officials again called for civilians in the region to flee, as Russian forces turn their sights on the city of Sloviansk.

– Battle for cities –

Russian troops captured cities in the Lugansk region after long battles, consolidating their hold in the east after failing at the start of the February invasion to take the capital Kyiv and Ukraine’s second-largest city Kharkiv.

Despite the raging conflict, Kyiv took time to hail outgoing UK Prime Minister Boris Johnson, one of Ukraine’s keenest allies throughout the war.

Johnson said that even though he was leaving office, Britain would continue supporting Ukraine for “as long as it takes”. 

“We all welcome this news with sadness. Not only me, but also all of Ukrainian society,” President Volodymyr Zelensky said, after Johnson resigned as leader of Britain’s Conservative party, paving the way for the selection of a new prime minister.

“We don’t doubt that Great Britain’s support will continue, but your personal leadership and your charisma made it special,” he said.

In the diplomatic clash between Ukraine and Turkey, Kyiv says that a 7,000-tonne vessel set off from Ukraine’s Russian-occupied port of Berdyansk after picking up wheat.

The marinetraffic.com website on Thursday showed the vessel moving away from Turkey’s Black Sea port of Karasu before apparently switching off its transponder and disappearing from view.

Ukraine said it was “deeply disappointed” that Turkey had not seized the ship.

– Control over Snake Island –

Zelensky in his evening address again called for more arms from international allies.

“The bigger defense support to Ukraine will be now, the quicker the war will end with our victory and the lesser will be losses of all countries in the world,” he said.

Ukraine this week also said it had regained control of Snake Island in the Black Sea, raising its flag there following the withdrawal of Russian forces.

“I want to thank for the final stage of the fight for Snake Island.  Our national flag was erected there. This operations lasted for two months,” Zelensky said.

“Let now every Russian captain of a ship or a plane see the Ukrainian flag at Zmeiny and know that our country cannot be broken.”

Russia said it pulled back from the symbolic island in a gesture of “good will”, but has since continued targeting positions there.

The Russian defence ministry said it had carried out “precision” missile strikes on the island early Thursday, killing Ukrainian soldiers.

Finland meanwhile passed legislation to build stronger fences on its border with Russia, as the country seeks to join NATO following the invasion.

Finland reversed decades of military non-alignment by seeking membership in the military alliance in May, formally starting the process to join this week.

burs-jbr/gw/bgs/mlm

Watchdog to probe intensive audits of Trump foes who led FBI

The US tax authority said Thursday it had asked for an independent investigation into rare, intrusive audits of two ex-FBI heads who were prominent adversaries of former president Donald Trump.

James Comey, the FBI director until he was sacked by Trump in 2017, and Andrew McCabe, Comey’s deputy and temporary replacement, were both subjected to the Internal Revenue Service reviews while the Republican billionaire was in office.

Individuals are supposed to be picked at random for the IRS’s National Research Program audits, making the chances of Comey being singled out in 2017 about one in 30,000, while McCabe’s odds in 2019 were about one in 20,000.

The revelation, first reported by The New York Times, raised questions over how two men who ran the nation’s premier domestic police agency and were seen by Trump as among his most high-profile foes could both have been selected.

Trump sacked Comey in 2017 and then called on him to be arrested for treason, angered by his investigation of the then-president’s extensive ties to Russia.

McCabe, who became acting FBI director after Comey’s dismissal, was fired by Trump’s Justice Department over accusations of lying to investigators that were never followed up with charges.

Trump smeared McCabe, too, again with unfounded treason allegations, and relentlessly pushed for his prosecution.

“I don’t know whether anything improper happened, but after learning how unusual this audit was and how badly Trump wanted to hurt me during that time, it made sense to try to figure it out,” Comey said in a statement to the Times. 

“Maybe it’s a coincidence or maybe somebody misused the IRS to get at a political enemy. Given the role Trump wants to continue to play in our country, we should know the answer to that question.”

– ‘Political targeting’ –

The IRS confirmed in a statement that its head Chuck Rettig — appointed by Trump in 2018 — had personally asked a Treasury Inspector General for a review.

“Audits are handled by career civil servants, and the IRS has strong safeguards in place to protect the exam process — and against politically motivated audits,” spokeswoman Jodie Reynolds told AFP.

“It’s ludicrous and untrue to suggest that senior IRS officials somehow targeted specific individuals for National Research Program audits.”

The referral earned support from lawmakers on both sides of the aisle.

Richard Neal, the Democratic chairman of the powerful House Ways and Means Committee, said in a statement the “political targeting” of Comey and McCabe marked “a crack in IRS’s fragile credibility.”

His Republican counterpart Kevin Brady said he supported “investigating all allegations of political targeting,” adding that the IRS should never be used as a weapon against political opponents.    

Trump’s representatives did not respond immediately to a request for comment, although the Times reported that a spokesman said the ex-president had “no knowledge of this.”

Comey’s audit lasted more than a year, and he and his wife were found to have overpaid their 2017 federal income taxes and got a $347 refund. 

McCabe told The Times he and his wife had paid a small amount they were found to be owing.

“I have significant questions about how or why I was selected for this,” he said.

Canada posts largest trade surplus in 14 years

Canada posted in May its largest trade surplus since 2008, riding a surge in oil prices as Western nations imposed energy sanctions on Russia, the government statistical agency said Thursday.

Total exports in the month rose 4.1 percent to Can$68.4 billion (US$52.6 billion), marking a 10th gain in 12 months, while total imports decreased 0.7 percent to Can$63.1 billion (US$48.6 billion). 

As a result, Canada’s trade surplus widened from Can$2.2 billion (US$1.7 billion) in April to Can$5.3 billion (US$4.1 billion) in May, Statistics Canada said.

The increase in exports was led by oil, which has shot up in price amid supply constraints following Russia’s invasion of Ukraine.

Sales of business jets to the United States also soared, as did shipments of potash — mainly to Brazil — to a record high, as buyers looked beyond Russia, which is the largest exporter of fertilizers, for new supplies.

Exports of copper ores and concentrates also increased, mainly to South Korea.

Meanwhile, imports of clothing and footwear, along with pharmaceutical and medicinal products, and commercial airliners from United States, all fell.

The decrease was partially offset by an uptick in imports of basic chemicals, largely driven by pharmaceutical ingredients from Ireland.

Canada’s trade surplus with the United States — its largest trading partner — also widened from Can$12.9 billion (US$9.9 billion) in April to Can$14.0 billion (US$10.8 billion) in May, setting another record high.

NASA releases James Webb telescope 'teaser' picture

NASA has a provided a tantalizing teaser photo ahead of the highly-anticipated release next week of the first deep-space images from the James Webb Telescope –- an instrument so powerful it can peer back into the origins of the universe.

The $10 billion observatory — launched in December last year and now orbiting the Sun a million miles (1.5 million kilometers) away from Earth –- can look where no telescope has looked before thanks to its enormous primary mirror and instruments that focus on infrared, allowing it to peer through dust and gas.

The first fully formed pictures are set for release on July 12, but NASA provided an engineering test photo on Wednesday — the result of 72 exposures over 32 hours that shows a set of distant stars and galaxies.

The image has some “rough-around-the-edges” qualities, NASA said in a statement, but is still “among the deepest images of the universe ever taken” and offers a “tantalizing glimpse” at what will be revealed in the coming weeks, months, and years.

“When this image was taken, I was thrilled to clearly see all the detailed structure in these faint galaxies,” said Neil Rowlands, program scientist for Webb’s Fine Guidance Sensor at Honeywell Aerospace.

Jane Rigby, Webb’s operations scientist at NASA’s Goddard Space Flight Center, said the “faintest blobs in this image are exactly the types of faint galaxies that Webb will study in its first year of science operations.”

NASA administrator Bill Nelson said last week that Webb is able to gaze further into the cosmos than any telescope before it.

“It’s going to explore objects in the solar system and atmospheres of exoplanets orbiting other stars, giving us clues as to whether potentially their atmospheres are similar to our own,” he said.

“It may answer some questions that we have: Where do we come from? What more is out there? Who are we? And of course, it’s going to answer some questions that we don’t even know what the questions are.” 

Webb’s infrared capabilities allow it to see back in time to the Big Bang, which happened 13.8 billion years ago. 

Because the Universe is expanding, light from the earliest stars shifts from the ultraviolet and visible wavelengths it was emitted in, to longer infrared wavelengths — which Webb is equipped to detect at an unprecedented resolution.

At present, the earliest cosmological observations date to within 330 million years of the Big Bang, but with Webb’s capacities, astronomers believe they will easily break the record.

Huge groups of fin whales sign of hope for ocean giants

For the first time since whaling was banned, dozens of southern fin whales have been filmed feasting together in a “thrilling” Antarctic spectacle, hailed by scientists Thursday as a sign of hope for the world’s second largest animal.  

The ocean giants are second only to blue whales in length, with slender bodies that help them glide through the water at high speed. 

They could not evade industrial whaling, however, and were slaughtered to near-extinction during the 20th Century as hunters systematically shattered populations of whales across the planet. 

“They were reduced to one or two percent of their original population size,” said Helena Herr, of the University of Hamburg, lead author of the research published in the journal Scientific Reports. 

“We’re talking about a couple of thousand animals left for the whole southern hemisphere area.”

While scientists say numbers of southern fin whales have been slowly rebounding since a 1976 whaling ban, there have been few sightings of these mysterious animals in large groups at their historic feeding grounds. 

But in scenes that Herr described as “one of nature’s greatest events”, researchers and filmmakers were able to capture footage of up to 150 southern fin whales in Antarctica.     

Drone footage, shot by wildlife filmmakers from the BBC, shows the fin whales swooping and lunging through the water, blasting great bursts of air as they surface, as birds wheel in the sky above them.   

“The water around us was boiling, because the animals were coming up all the time and causing splashes,” Herr told AFP. 

“It was thrilling, just standing there and watching it.”

Unofficially, the team nicknamed it the “fin whale party” as the enormous creatures feasted on swirling masses of krill.   

In two expeditions in 2018 and 2019, researchers recorded a hundred groups of fin whales, ranging from small gatherings of a few individuals, to eight huge congregations of up to 150 animals. 

Previously, recorded feeding groups had a maximum of around a dozen whales. 

Using data from their surveys, the authors estimate that there could be almost 8,000 fin whales in the Antarctic area.

– ‘Ecosystem engineers’ – 

Fin whales can live to around 70 or 80 years old when left alone and have just one calf at a time, so Herr said the recovery of populations is a slow process. 

She said increasing numbers of southern fin whales is an encouraging sign that conservation measures can work, although she noted that other threats include being struck by boats.

The International Union for Conservation of Nature now lists fin whales as “vulnerable” and estimates the global population as 100,000, with most of these in the northern hemisphere. 

More whales could also be a good sign for the health of the ocean more generally — and even efforts to tackle climate change. 

Whales feed on iron-rich krill but they also defecate in the surface waters — returning nutrients to the ocean that help spark the growth of tiny phytoplankton, the foundation of the marine food web.

Like plants on land, phytoplankton photosynthesise using the sun’s rays to turn carbon dioxide into energy and oxygen.  

They are “ecosystem engineers”, said Herr, who first spotted a large group of the whales by chance in 2013 during a research mission into Antarctic Minke whales. 

She now plans more missions to investigate the enduring mystery of these ocean giants — where they breed. 

“We don’t know where they go,” said Herr, adding that much more is known about the fin whales of the northern hemisphere.  

Herr’s team was able to put satellite tags on four animals last year, but a mission to go back to the Antarctic with more tracking equipment has been delayed until next year by the pandemic. 

– Exploitation –

This elusiveness is even more astonishing given the size of fin whales.

The animals can grow up to around 27 metres (88 feet), although Herr said that they now tend to average 22 metres, particularly after whaling that targeted the biggest creatures.    

In all some 700,000 individual fin whales were killed during the 20th century for the oil in their body fat.    

All populations of whales in the region were ravaged, from the biggest blue whales down to the smallest minke whales until commercial hunting was stopped in a series of agreements in the 1970s and 1980s. 

“It’s an example of how humanity treats resources,” said Herr. 

“They just exploit them as long as they can and only stop when it’s not commercially valuable anymore. As long as you can make profit, it will be exploited.”

Ghislaine Maxwell appeals sex crimes conviction, sentence

Disgraced former socialite Ghislaine Maxwell has appealed her conviction and 20-year sentence for helping late financier Jeffrey Epstein sexually abuse girls, a court filing showed Thursday.

Her lawyer Bobbi Sternheim filed the appeal with the United States Court of Appeals for the Second Circuit last week, the docket showed.

The document did not detail Maxwell’s arguments for throwing out the conviction, but her attorneys have previously claimed that a juror biased the verdict.

Her legal team have also argued that some of the victims were above the age of consent in certain states where the abuse occurred. 

The Oxford-educated daughter of the late British press baron Robert Maxwell was found guilty on five of six counts, the most serious for sex trafficking minors, late last year.

The charges stemmed from crimes committed against four women between 1994 and 2004.

Prosecutors successfully proved that she was “the key” to Epstein’s scheme of enticing young girls to give him massages, during which he would sexually abuse them.

New York judge Alison Nathan described Maxwell’s crimes as “heinous and predatory” when she sentenced the 60-year-old last week.

Maxwell’s lawyers unsuccessfully argued during her high-profile trial that their client had been pursued by prosecutors only because Epstein had evaded justice.

The money manager hanged himself in jail in 2019 aged 66 while awaiting his own sex crimes trial in New York.

In April, Nathan rejected Maxwell’s claim that she should receive a new trial because a juror had boasted of convincing fellow panelists to convict by recalling his own experiences as a sex abuse victim.

Maxwell’s circle once included Britain’s Prince Andrew, former US president and real estate baron Donald Trump and the Clinton family.

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