Sunil Dhawan — Direct/Cross

MR. SCHENK: GOOD AFTERNOON, DR. DHAWAN. IF YOU ARE FULLY VACCINATED, AND WITH THE COURT'S PERMISSION, YOU CAN REMOVE YOUR MASK AND TESTIFY WITHOUT THE MASK IF YOU WOULD LIKE.

MR. SCHENK: DR. DHAWAN, HOW ARE YOU CURRENTLY EMPLOYED?

MR. SCHENK: DO YOU MIND PULLING THE MICROPHONE JUST A LITTLE BIT CLOSER?

MR. SCHENK: AT THE CENTER FOR DERMATOLOGY?

MR. SCHENK: AND WHAT DO YOU DO THERE?

MR. SCHENK: AND WHAT IS THAT, THE CLINICAL TRIAL PRACTICE?

MR. SCHENK: AND HOW LONG HAVE YOU HAD THAT PRACTICE?

MR. SCHENK: AND WHEN DID YOU GET YOUR MEDICAL DEGREE?

MR. SCHENK: OKAY. AND DID YOU WORK SOMEWHERE AFTER YOU GRADUATED FROM MEDICAL SCHOOL AND BEFORE YOUR PRACTICE?

MR. SCHENK: OKAY. AT YOUR CURRENT MEDICAL PRACTICE, DO YOU HAVE EXPERIENCE RUNNING LAB TESTS?

MR. SCHENK: WOULD YOU DESCRIBE THAT FOR US?

MR. SCHENK: WHAT IS HISTOPATHOLOGY?

MR. SCHENK: SO A PATIENT IS BIOPSIED, THAT SUBSTANCE IS PUT ON A SLIDE, AND THEN YOU LOOK AT THE SLIDE UNDER A MICROSCOPE?

MR. SCHENK: DO YOU KNOW SOMEONE NAMED SUNNY BALWANI?

MR. SCHENK: AND HOW DO YOU KNOW HIM?

MR. SCHENK: DID -- DURING THE COURSE OF TREATING MR. BALWANI, DID HE TELL YOU WHERE HE WORKED?

MR. SCHENK: IN 2014 OR 2015?

MR. SCHENK: OKAY. WAS THERE A POINT IN TIME WHEN MR. BALWANI ASKED IF YOU WANTED TO WORK FOR THERANOS?

MR. SCHENK: MR. BALWANI ASKED IF YOU WOULD SERVE AS THE LAB DIRECTOR AT THERANOS?

MR. SCHENK: OKAY. THE JOB WOULD BE FOR A LIMITED PERIOD OF TIME?

MR. SCHENK: AND DID MR. BALWANI TELL YOU WHY THERANOS NEEDED A LAB DIRECTOR?

MR. SCHENK: YOU SAID "LED TO BELIEVE." BY MR. BALWANI?

MR. SCHENK: DID HE TELL YOU ANYTHING ABOUT THE CIRCUMSTANCES? DID HE TELL YOU --

MR. SCHENK: DID HE TELL YOU THE PRIOR LAB DIRECTOR'S NAME?

MR. SCHENK: HE MAY HAVE, YOU JUST DON'T REMEMBER?

MR. SCHENK: LET'S TURN -- ACTUALLY, YOUR HONOR, MAY I APPROACH?

MR. SCHENK: THANK YOU.

MR. SCHENK: DR. DHAWAN, CAN I ASK YOU TO TURN TO EXHIBIT 2219 IN YOUR BINDER. YOUR HONOR, I BELIEVE -- THE GOVERNMENT IS OFFERING THIS BASED ON A STIPULATION BETWEEN THE PARTIES.

MR. SCHENK: THANK YOU.

MR. SCHENK: THE 9 MIGHT LOOK LIKE A 4. LET'S GO WITH THAT EXHIBIT. IT ALSO IS ON THE SCREEN IN FRONT OF YOU.

MR. SCHENK: WE CAN GO ON THE SCREEN IF THAT'S NOT WORKING FOR YOU.

MR. SCHENK: SO IS THIS AN EMAIL EXCHANGE BETWEEN YOURSELF AND MR. BALWANI IN NOVEMBER OF 2014?

MR. SCHENK: AND IF WE COULD START ON PAGE 2 AT THE BOTTOM. IT LOOKS LIKE ON NOVEMBER 14TH, 2014, MR. BALWANI WROTE TO YOU, "SUNIL. "THANKS FOR TAKING MY CALL. "THE TIME COMMITMENT IS VERY MINIMAL. THIS WILL BE MOSTLY AN ON CALL CONSULTING ROLE AND I AM EXTREMELY CONFIDENT THAT IT WON'T INTERFERE WITH YOUR WORK OR WITH YOUR FAMILY LIFE. I AM ATTACHING THE REQUIREMENTS HERE. PLEASE LET ME KNOW IF YOU WILL BE ABLE TO DO THIS OR PERHAPS SOMEONE ELSE YOU KNOW. THIS WILL BE 1-3 MONTHS," AND THEN IT CONTINUES ON THE NEXT PAGE, "ROLE." DO YOU SEE THAT?

MR. SCHENK: AND THEN AT THE BOTTOM OF THAT NEXT PAGE, IT LOOKS LIKE MR. BALWANI INCLUDED SOME CLIA REGULATIONS. DO YOU RECALL THAT?

MR. SCHENK: AND WAS THIS THE TIMEFRAME WE WERE JUST TALKING ABOUT? THE PERIOD OF TIME IS NOVEMBER OF 2014, AND MR. BALWANI IS ASKING YOU IF YOU COULD SERVE IN A ROLE AT THERANOS?

MR. SCHENK: ABOVE THE EMAIL I JUST READ TO YOU, ON THE SECOND PAGE YOU RESPOND TO MR. BALWANI, "SUNNY. "I CAN DO THIS - WHAT IS NEXT STEP?" IS THAT RIGHT?

MR. SCHENK: WHEN YOU AGREED TO BE THE LAB DIRECTOR, WHAT DID YOU UNDERSTAND THERANOS DID?

MR. SCHENK: DO YOU KNOW ON WHAT DEVICES THEY TESTED BLOOD?

MR. SCHENK: AND WHAT DID YOU LEARN?

MR. SCHENK: WHEN YOU WERE THINKING ABOUT TAKING THIS JOB TO WORK AT THERANOS, YOU OBTAINED INFORMATION ABOUT WHAT THERANOS DID BY LOOKING ON GOOGLE?

MR. SCHENK: AND HOW ABOUT IN YOUR CONVERSATIONS WITH MR. BALWANI? DID HE DESCRIBE TO YOU WHAT THERANOS DID AND WHAT YOUR JOB WOULD BE?

MR. SCHENK: OKAY. AND NOW IF WE CAN GO TO THE FIRST PAGE OF THIS EXHIBIT, AT THE VERY TOP THERE'S AN EMAIL FROM MR. BALWANI TO YOU, NOVEMBER 19TH, 2014, AND HE WRITES IN THAT SECOND PARAGRAPH, "WE HAVE ALL PAPERWORK IN PLACE AND I WILL HAVE ONE OF THE COURIERS BRING IT BY YOUR OFFICE TOMORROW A.M. FOR YOUR SIGNATURE." DO YOU RECALL WHETHER THAT HAPPENED? DID MR. BALWANI BRING PAPERWORK TO YOU AND YOU SIGNED AND BECAME LAB DIRECTOR?

MR. SCHENK: YOU DON'T REMEMBER EXACTLY THE DATE, BUT GENERALLY AROUND THIS TIME?

MR. SCHENK: OKAY. IF YOU COULD NOW TURN IN YOUR BINDER TO 2248. YOUR HONOR, THE GOVERNMENT IS OFFERING THIS EXHIBIT PURSUANT TO STIPULATION.

MR. SCHENK: YOU DON'T HAVE 2248?

MR. SCHENK: AND IT'S ON THE SCREEN IN FRONT OF YOU. LET ME KNOW IF --

MR. SCHENK: THANK YOU VERY MUCH.

MR. SCHENK: NOW WE'RE LOOKING AT 2248. IT'S AN EMAIL TO YOU. FIRST OF ALL, THAT'S YOUR EMAIL ADDRESS, BUT REDACTED; IS THAT RIGHT?

MR. SCHENK: WHAT I'M LOOKING AT ON THE SCREEN?

MR. SCHENK: THANK YOU. THE CONTENT SAYS, "HI DR. DHAWAN. "ATTACHED PLEASE FIND AN EXECUTED COPY OF THE CONSULTING AGREEMENT FOR YOUR RECORDS." AND I WANT TO ASK YOU SOME QUESTIONS ABOUT THE CONSULTING AGREEMENT, SO LET'S TURN TO PAGE 2. AND IN THE FIRST PARAGRAPH IT WAS ENTERED INTO AS OF, AND THEN THERE'S A DATE, NOVEMBER 19TH, 2014. IS THAT CONSISTENT WITH YOUR RECOLLECTION OF WHEN YOU BECAME AN EMPLOYEE AT THERANOS?

MR. SCHENK: AND IF WE COULD TURN NOW TO PAGE 6. THERE'S SOME SIGNATURES ON PAGE 6. FIRST, IS THAT YOUR SIGNATURE?

MR. SCHENK: AND THEN IS THERE A SIGNATURE ABOVE THE NAME SUNNY BALWANI?

MR. SCHENK: THERE'S A SIGNATURE ABOVE THAT?

MR. SCHENK: AND THEN IF YOU'LL TURN TO THE NEXT PAGE, PAGE 7, EXHIBIT A, THE FIRST IS YOUR PRINCIPAL COMPANY CONTACT IS SUNNY BALWANI, PRESIDENT, COO. DO YOU SEE THAT?

MR. SCHENK: AND WAS MR. BALWANI YOUR PRINCIPAL CONTACT DURING THE TIME YOU WORKED AT THERANOS?

MR. SCHENK: UNDER NUMBER 2, THE SERVICES, IT LISTS THE SERVICES AND IT SAYS, "SERVING AS A LABORATORY DIRECTOR AND CLINICAL CONSULTANT OF THERANOS'S CLIA LABORATORY IN CALIFORNIA AND FULFILLING THE DUTIES OF A CALIFORNIA-LICENSED AND CLIA-QUALIFIED CLINICAL LABORATORY DIRECTOR AND CLINICAL CONSULTANT." IS THAT CONSISTENT WITH WHAT YOUR ROLE AT THERANOS WAS?

MR. SCHENK: AND UNDER COMPENSATION, IT SAYS THAT YOU WILL BE PAID $5,000 PER MONTH. IS THAT THE INITIAL PAYMENT OFFER THAT YOU RECEIVED FROM THERANOS?

MR. SCHENK: WAS THERE A POINT IN TIME WHEN YOU TALKED TO MR. BALWANI ABOUT CONVERTING THAT FROM CASH TO STOCK OPTIONS?

MR. SCHENK: AND WHAT DO YOU RECALL ABOUT THAT?

MR. SCHENK: AND DID YOU EVER CASH ANY CHECKS YOU RECEIVED FROM THERANOS?

MR. SCHENK: HOW ABOUT OPTIONS? DO YOU RECALL RECEIVING OPTIONS?

MR. SCHENK: RSU'S?

MR. SCHENK: OKAY. NOW I'D LIKE TO TALK TO YOU ABOUT A CHUNK OF TIME. IN NOVEMBER OF 2014, YOU SIGNED THIS CONTRACT AND BECAME A LAB DIRECTOR AT THERANOS; IS THAT RIGHT?

MR. SCHENK: NOW, TALK TO ME ABOUT NOVEMBER OF 2014 THROUGH ABOUT JUNE OR JULY OF 2015, SO SEVEN OR EIGHT MONTHS, SOMETHING LIKE THAT. SO I FIRST WANT TO KNOW, WHAT TYPE OF WORK DID YOU DO? DID YOU GO TO THERANOS EVERY DAY?

MR. SCHENK: HOW MANY TIMES DID YOU GO TO THERANOS DURING THAT PERIOD OF TIME THAT I JUST OUTLINED?

MR. SCHENK: SO TWO TIMES?

MR. SCHENK: AND SO THAT'S TWO TIMES DURING THE COURSE OF TIME I OUTLINED FOR YOU?

MR. SCHENK: UNTIL AUGUST OF 2015?

MR. SCHENK: OKAY. WE'LL TAKE THAT SEPARATELY IN A MOMENT. DURING THIS PERIOD OF TIME, DID YOU SEE THE THERANOS TECHNOLOGY, A DEVICE OR SOMETHING?

MR. SCHENK: OKAY. DO YOU REMEMBER WHO GAVE YOU THAT TOUR?

MR. SCHENK: DO YOU RECALL DURING THE TOUR IF MR. BALWANI DESCRIBED TO YOU WHAT YOU WERE LOOKING AT AND WHAT THE DEVICE WAS?

MR. SCHENK: DO YOU RECALL WHAT HE CALLED THEM?

MR. SCHENK: ONE -- I'M SORRY -- YOU SAID WAS?

MR. SCHENK: OKAY. AND HOW ABOUT DEVICES -- DID MR. BALWANI SAY HE WAS SHOWING YOU ANY DEVICES THAT WERE MANUFACTURED BY THERANOS?

MR. SCHENK: OKAY. DURING THIS PERIOD OF TIME, NOVEMBER TO JUNE OR JULY, AGAIN, DID YOU HAVE ANY OCCASION TO INTERACT WITH A PATIENT? DID A PATIENT CALL YOU AND ASK QUESTIONS ABOUT THEIR LAB RESULTS?

MR. SCHENK: DID A DOCTOR EVER CALL YOU AND ASK QUESTIONS ABOUT THEIR LAB RESULTS?

MR. SCHENK: DID YOU EVER INTERACT WITH EMPLOYEES OF THERANOS THAT WORKED IN THE LAB?

MR. SCHENK: THERE WASN'T ONE TIME THAT YOU SPOKE TO A THERANOS EMPLOYEE THAT WORKED IN THE LAB?

MR. SCHENK: WAS THERE A TIME WHEN SOMEONE WORKED IN THE LAB AND HAD A QUESTION ABOUT WHETHER THEY SHOULD REPORT A RESULT? THEY DID A BLOOD TESTS AND ACHIEVED A RESULT AND THEY WONDERED WHETHER THIS RESULT SHOULD BE REPORTED? DID THAT EVER HAPPEN WHERE SOMEONE CAME TO YOU WITH THAT QUESTION?

MR. SCHENK: WAS THERE AN OCCASION WHEN THE THERANOS -- DO YOU KNOW THE CONCEPT OF QUALITY CONTROL, QC?

MR. SCHENK: YOU DO THAT AT YOUR DERMATOLOGY?

MR. SCHENK: AND WAS THERE EVER A TIME WHEN SOMEONE AT THERANOS CALLED YOU WITH QUESTIONS REGARDING THE QC WORK THAT THERANOS WAS DOING?

MR. SCHENK: CAN YOU ESTIMATE FOR ME HOW MANY HOURS YOU WORKED FOR THERANOS DURING THIS PERIOD OF TIME? I DON'T MEAN EACH WEEK, I JUST MEAN TOTAL.

MR. SCHENK: MAYBE FIVE OR TEN TOTAL HOURS --

MR. SCHENK: -- FROM NOVEMBER 2014 THROUGH JUNE OR JULY OF 2015?

MR. SCHENK: DO YOU KNOW -- LET'S TURN NOW TO AUGUST OF 2015.

MR. SCHENK: DO YOU KNOW WHETHER THE FDA DID AN INSPECTION AT THERANOS IN AUGUST OF 2015?

MR. SCHENK: FROM NOVEMBER OF 2014 THROUGH AUGUST NOW OF 2015, DID YOU EVER HIRE ANYONE TO WORK IN THE LAB?

MR. SCHENK: DURING THAT SAME PERIOD OF TIME, DID YOU EVER FIRE ANYONE THAT WORKED IN THE LAB?

MR. SCHENK: DO YOU KNOW WHO MADE THE HIRING DECISIONS OR THE FIRING DECISIONS AT THE LAB?

MR. SCHENK: IF YOU'LL TURN IN YOUR BINDER TO 2663. YOUR HONOR, THE GOVERNMENT OFFERS 2663 PURSUANT TO STIPULATION OF THE PARTIES.

MR. SCHENK: THANK YOU.

MR. SCHENK: NOW WE'RE IN AUGUST OF 2015. AUGUST 4TH, SOMEONE NAMED LANGLY GEE IS SENDING AN EMAIL TO YOU AND ANOTHER INDIVIDUAL NAMED DANIEL YOUNG. DO YOU SEE THAT?

MR. SCHENK: AND MR. GEE WRITES, "HI DR. DHAWAN: "MY NAME IS LANGLY GEE AND I AM THE QA/QC MANAGER FOR THERANOS, INC." HAD YOU MET MR. GEE BEFORE THIS DATE?

MR. SCHENK: AND DOES IT SEEM LIKE HE'S INTRODUCING HIMSELF TO YOU?

MR. SCHENK: AND IN THE SECOND PARAGRAPH HE WRITES, "I WAS GIVEN YOUR EMAIL ADDRESS FROM DANIEL YOUNG AND I AM TO BEGIN SENDING YOU DOCUMENTS FOR YOUR SIGNATURE." THERE'S A REFERENCE TO AN INDIVIDUAL NAMED DANIEL YOUNG. DO YOU REMEMBER MEETING HIM AT THIS TIME? WAS HE A KNOWN NAME TO YOU?

MR. SCHENK: HE SAYS THAT HE'S GOING TO BEGIN SENDING DOCUMENTS TO YOU FOR YOUR SIGNATURE. DO YOU RECALL THAT HAPPENING? DO YOU RECALL BEING SENT DOCUMENTS FROM THERANOS THAT NEEDED YOUR SIGNATURE?

MR. SCHENK: THE EMAIL CONTINUES, "MY FIRST SET OF SEVEN DOCUMENTS (VALIDATION, SOP'S AND EMPLOYEE TRAINING) HAS TO DO WITH THERANOS'S NEW LAUNCH OF T-CELL, B CELL, NK-CELL ASSAY." DO YOU SEE THAT?

MR. SCHENK: DO YOU HAVE EXPERIENCE WITH SOP'S?

MR. SCHENK: "THESE DOCUMENTS WILL ARRIVE IN YOUR EMAIL TODAY THROUGH THE DOCUSIGN APPLICATION. PLEASE REVIEW THESE DOCUMENTS AND I HAVE SET UP A SPECIFIC PAGE ON EACH DOCUMENT FOR YOU TO ELECTRONICALLY SIGN, PRINT NAME AND DATE." AND IT CONTINUES, "ONCE YOU RECEIVE THE EMAIL, YOU WILL HAVE 30 DAYS TO REVIEW THE DOCUMENTS AND SEND THEM BACK TO ME. GOING FORWARD THERE WILL BE AT LEAST ANOTHER 300-400 MORE DOCUMENTS FOR YOUR REVIEW. I WOULD LIKE TO ASK YOUR OPINION AS TO HOW YOU WOULD LIKE THEM SENT, IE, ALL AT ONCE, 50 PER WEEK. PLEASE ADVISE." DO YOU RECALL THIS EMAIL BEING FOLLOWED UP WITH DOCUMENTS THAT YOU NEEDED TO SIGN?

MR. SCHENK: IF WE CAN TURN NOW TO 2760. YOUR HONOR, THE GOVERNMENT OFFERS THIS PURSUANT TO STIPULATION OF THE PARTIES.

MR. SCHENK: THANK YOU.

MR. SCHENK: AND IF WE CAN START ON THE SECOND PAGE OF THIS EMAIL CHAIN. WE HAVE NOW MOVED INTO SEPTEMBER. MR. BALWANI IS WRITING YOU AN EMAIL SEPTEMBER 9, 2015. DO YOU SEE THAT?

MR. SCHENK: AND IN IT I WANT TO DRAW YOUR ATTENTION -- WELL, FIRST, THE PARAGRAPH THAT BEGINS, "THE ISSUANCE," IS THAT TALKING ABOUT THE STOCK OPTIONS THAT WE TALKED ABOUT A MOMENT AGO?

MR. SCHENK: AND THE SECOND PARAGRAPH -- I'M SORRY, THE PARAGRAPH AFTER THAT IT BEGINS, "I ALSO NEED," IS WHERE I WANT TO ASK YOU SOME QUESTIONS. "I ALSO NEED YOUR HELP ON AN ADDITIONAL MATTER. WE HAVE A LAB AUDIT COMING UP ON 9-22 AT 9:00 A.M. (THESE HAPPEN ONCE EVERY TWO YEARS), AND WANTED TO SEE IF YOU CAN BE PRESENT FOR AT LEAST THE FIRST PART OF IT. I HAVE A VERY CAPABLE TEAM THAT HAS TAKEN CARE OF ALL OF THE DETAILS AS ALWAYS, BUT WOULD LIKE TO HAVE YOU HERE FOR THE FIRST PART OR SO AND THE INTRODUCTION OF OUR TEAM. IN PREPARATION FOR THE LAB AUDIT, I WILL PERSONALLY WALK YOU THROUGH ALL OF THE LATEST UPDATES WITH OUR TEAM -- WE HAVE HIRED MANY EXPERTS FROM THE INDUSTRY TO MAKE SURE LAB IS FLAWLESS AND AUDIT READY, SO I DON'T ANTICIPATE ANY HICKUPS, BUT AS ALWAYS, WANT YOU TO BE FAMILIAR WITH IT. "LET ME KNOW IF I CAN GET AN HOUR FROM YOU THIS WEEK IN THE A.M. OR AFTER WORK, AN HOUR NEXT WEEK ANYTIME AT YOUR CONVENIENCE, AND THEN SOME TIME ON 9/229, 9:00 A.M. AS ABOVE, I CAN PLAN TO HAVE MY TEAM PICK UP AND DROP YOU OFF FOR ALL OF THESE DATES SO YOU DON'T HAVE TO WORRY ABOUT COMMUTE." ON 9-22, SEPTEMBER 22ND, DID YOU GO TO THERANOS FOR AN AUDIT OR INSPECTION?

MR. SCHENK: AND WAS THAT AN INSPECTION CONDUCTED BY CMS?

MR. SCHENK: IN ADVANCE OF THAT DID YOU SIGN DOCUMENTS AT THERANOS?

MR. SCHENK: OKAY. LET'S NOW GO UP IN THE CHAIN. AND IT LOOKS LIKE YOU'RE TALKING ABOUT SCHEDULE ON THE FIRST PAGE OF THIS EMAIL. DO YOU TALK ABOUT CONFIRMING ON THE 22ND AND THEN IT LOOKS LIKE YOU SAY TOMORROW AT 6:00 P.M. FOR SIGNING AND WALKTHROUGH. DO YOU SEE THAT?

MR. SCHENK: AND SO IS IT POSSIBLE THAT YOU SIGNED THE DOCUMENTS AND ALSO MAYBE HAD A WALKTHROUGH IN ADVANCE OF THE INSPECTION?

MR. SCHENK: OKAY. COULD YOU NOW TURN TO 2772. YOUR HONOR, THE GOVERNMENT OFFERS EXHIBIT 2772 PURSUANT TO STIPULATION.

MR. SCHENK: THANK YOU.

MR. SCHENK: A COUPLE OF DAYS LATER NOW SEPTEMBER 15TH, 2015, AND THERE'S AN EMAIL EXCHANGE BETWEEN YOU AND MR. BALWANI. AND LET'S START WITH HIS EMAIL TO YOU. HE WRITES, "THANKS FOR DROPPING BY. "I NEED A COUPLE OF HOURS FROM YOU THIS COMING WEEKEND. UNFORTUNATELY I HAVE CLOSE TO 300 SOP'S THAT NEED SIGNING. I CAN HAVE TEAM SEND THIS OUT 50 AT A TIME EACH DAY THIS WEEK ELECTRONICALLY AS THAT MIGHT BE EASIER. SORRY FOR THE LAST MINUTE ON THIS I WAS TRYING TO FIND A WAY TO AVOID DOING THIS MANUALLY...THANKS IN ADVANCE." SO THIS WAS SENT ON MONDAY, SEPTEMBER 14TH, AND HE ASKS IF YOU'RE AVAILABLE THAT COMING WEEKEND, SO FIVE, SIX, SEVEN DAYS LATER; IS THAT RIGHT?

MR. SCHENK: AND YOU RESPOND, "SUNNY. "LET'S DO THIS ON SATURDAY -- I CAN SIGN AT YOUR FACILITY." SO IS IT SUGGESTED IN THIS EMAIL OR DO YOU HAVE A RECOLLECTION OF GOING TO THE FACILITY TO SIGN THESE DOCUMENTS?

MR. SCHENK: YOUR HONOR, MAY I APPROACH?

MR. SCHENK: (HANDING.)

MR. SCHENK: DR. DHAWAN, I'VE HANDED YOU A BINDER THAT CONTAINS ADMITTED EXHIBITS. THESE EXHIBITS WERE ADMITTED, I BELIEVE, BY STIPULATION OF THE PARTIES, YOUR HONOR, DURING DR. ROSENDORFF'S TESTIMONY. THE BINDER IS LABELLED VALIDATION REPORTS. IT CONTAINS 59 TABS. I'VE COUNTED TO SAVE YOU THE TIME. WHAT I'M GOING TO ASK YOU TO DO, DR. DHAWAN, IS TO LOOK AT THE FIRST PAGE OF EACH TAB AND TELL ME IF YOU SIGNED THAT DOCUMENT ON 9-19-2015, SEPTEMBER 19TH, 2015. AND IF I COULD JUST SHOW ONE OF THEM, WHICH IS AN ADMITTED EXHIBIT FOR THE JURY, 9387.

MR. SCHENK: THANK YOU, YOUR HONOR.

MR. SCHENK: SO, FOR INSTANCE, ON THE SCREEN AT THE VERY BOTTOM THAT SIGNATURE NEXT TO THE DATE 9-19, THAT'S YOUR SIGNATURE?

MR. SCHENK: SO IF YOU WOULD TAKE A MINUTE NOW AND LOOK AT EACH INDIVIDUAL REPORT IN THERE AND TELL ME IF YOU FIND ANY THAT YOU DID NOT SIGN ON 9-19-2015.

MR. SCHENK: CAN I ASK YOU TO LOOK AT TAB 99086.

MR. SCHENK: THE TAB NUMBER?

MR. SCHENK: 9086?

MR. SCHENK: AND DID YOU SIGN THAT ONE ON 9-19-2015?

MR. SCHENK: SO OF THE 59 EXHIBITS IN HERE --

MR. SCHENK: -- 58 OF THEM YOU SIGNED ON SEPTEMBER 19TH, 2015?

MR. SCHENK: AND I WANT TO TALK TO YOU A LITTLE BIT ABOUT THAT DATE 9-19-2015. WAS THAT A SATURDAY? IT LOOKS LIKE A --

MR. SCHENK: AND WHEN YOU WERE AT THERANOS SIGNING THESE DOCUMENTS, HOW CLOSELY DID YOU READ THEM?

MR. SCHENK: AND DID YOU TALK TO MR. BALWANI OR OTHER PEOPLE AT THERANOS TO GET COMFORTABLE WITH THE CONTENTS?

MR. SCHENK: AND DID IT MATTER TO YOU THAT SOMEONE NAMED ADAM ROSENDORFF HAD SIGNED THE DOCUMENT BEFORE YOU?

MR. SCHENK: HE WAS THE LAB DIRECTOR THAT YOU CAME IN TO REPLACE?

MR. SCHENK: AND WHY DID HIS SIGNATURE PROVIDE COMFORT TO YOU?

MR. SCHENK: ON THE EXHIBIT THAT WE'RE LOOKING AT ON THE SCREEN, THIS ONE IS 9387, IT LOOKS LIKE IT'S A VALIDATION DOCUMENT FOR A CERTAIN ELISA ASSAY ON THE EDISON 3.X. DO YOU SEE THAT?

MR. SCHENK: AND WHEN YOU SIGNED THIS DOCUMENT, HAD YOU EVER SEEN THE EDISON DEVICE RUN THIS ASSAY?

MR. SCHENK: HAD YOU EVER SEEN THE EDISON DEVICE RUN ANY ASSAY?

MR. SCHENK: DO YOU RECALL WHEN YOU WERE REVIEWING THOSE DOCUMENTS DID YOU EVER FIND A DOCUMENT AND MAKE A COMMENT AND SAY, YOU KNOW WHAT, WE SHOULD CHANGE THIS AND THIS SHOULD BE DIFFERENT? DID THAT EVER HAPPEN AT ANY POINT THAT DAY?

MR. SCHENK: HOW ABOUT OTHER DAYS? WAS THERE A DAY THAT I'M NOT FOCUSSED ON RIGHT NOW WHERE YOU READ A VALIDATION REPORT OR AN SOP THAT YOU SAID I WANT THIS TO READ DIFFERENTLY? DO YOU RECALL THAT?

MR. SCHENK: CAN I ASK YOU TO LOOK -- I'M SORRY TO JUMP. YOU CAN PUT THAT BINDER ASIDE -- LOOK AT THE ORIGINAL BINDER 3041. YOUR HONOR, THE GOVERNMENT OFFERS THIS DOCUMENT BY STIPULATION.

MR. SCHENK: I'M SORRY. DR. DHAWAN, DID YOU SIGN THIS DOCUMENT IN DECEMBER OF 2015?

MR. SCHENK: AND THE DOCUMENT IS AN SOP FOR REPORTING CRITICAL VALUES. DO YOU SEE THAT?

MR. SCHENK: AND DO YOU HAVE EXPERIENCE WITH CRITICAL VALUES? DO YOU KNOW WHAT THAT PHRASE MEANS?

MR. SCHENK: SURE. SO YOU HAVE SOME EXPERIENCE WITH IT IN YOUR PRACTICE AND IN YOUR EDUCATION?

MR. SCHENK: DURING THE TIME THAT YOU WORKED AT THERANOS, WAS THERE AN OCCASION WHEN YOU AS LAB DIRECTOR NEEDED TO REPORT OUT A CRITICAL VALUE?

MR. SCHENK: THE ENTIRE TIME YOU WERE AT THERANOS YOU NEVER WERE SHOWN ONE CRITICAL VALUE?

MR. SCHENK: AND I JUST WANT TO CONFIRM UNDER YOUR SIGNATURE ON THIS DOCUMENT THERE'S A JOB TITLE. DO YOU SEE THAT?

MR. SCHENK: YOUR JOB TITLE IS LABORATORY DIRECTOR; IS THAT RIGHT?

MR. SCHENK: AND WOULD YOU NOW TURN TO 2791. THE GOVERNMENT OFFERS 2791 BY STIPULATION?

MR. SCHENK: THANK YOU.

MR. SCHENK: ON THIS DOCUMENT, FIRST THE EMAIL IS DATED MONDAY, SEPTEMBER 21ST, 2015. WE SAW EARLIER A REFERENCE TO SEPTEMBER 22ND. WAS THE 22ND THE DAY OF THE CMS INSPECTION THAT WE WERE TALKING ABOUT?

MR. SCHENK: SO THE DAY BEFORE SOMEONE NAMED MONA RAMAMURTHY SENT YOU THIS EMAIL AND ATTACHES SOME DOCUMENTS. DO YOU SEE THAT?

MR. SCHENK: AND IT SAYS "DEAR DR. DHAWAN. "CONGRATULATIONS. IT IS WITH GREAT PLEASURE THAT I WRITE TO PRESENT YOU THESE TERMS OF EMPLOYMENT TO JOIN THE THERANOS TEAM." DID YOU THINK THAT YOU HAD BEEN WORKING AT THERANOS FOR QUITE A WHILE BEFORE THIS DATE?

MR. SCHENK: OKAY. AND WAS THIS CHANGING YOUR STATUS?

MR. SCHENK: IF YOU'LL TURN TO THE NEXT PAGE. IT SAYS AT THE TOP, "DEAR SUNIL. "ON BEHALF OF THERANOS INC. (THE COMPANY), I AM PLEASED TO CONFIRM THE TERMS OF YOUR EMPLOYMENT AS LABORATORY DIRECTOR REPORTING TO SUNNY BALWANI." AND THEN BELOW THERE'S A PARAGRAPH THAT BEGINS YOUR START DATE. DO YOU SEE THAT?

MR. SCHENK: YOUR START DATE WITH THE COMPANY IS JUNE 1ST, 2015; IS THAT RIGHT?

MR. SCHENK: THAT'S WHAT IT SAYS?

MR. SCHENK: THEY SENT YOU A DOCUMENT ON SEPTEMBER 21ST THAT SAID YOUR START DATE WAS JUNE 1ST; IS THAT RIGHT?

MR. SCHENK: AND BY THIS POINT YOU HAD ALREADY SIGNED AT LEAST ALL THOSE VALIDATION REPORTS IN THE BINDER THAT WE HAD JUST TALKED ABOUT?

MR. SCHENK: THE NEXT DATE SEPTEMBER 22ND WAS THE INSPECTION. WERE YOU PRESENT FOR THE INSPECTION?

MR. SCHENK: AND DESCRIBE THAT TO THE JURY. WHAT WAS YOUR EXPERIENCE THAT DAY?

MR. SCHENK: DID YOU TALK TO MS. HOLMES THAT DAY?

MR. SCHENK: YOU SAID MEETING. WAS THAT THE FIRST TIME YOU MET MS. HOLMES?

MR. SCHENK: YOU SIGNED ON IN NOVEMBER OF 2014 AND SEPTEMBER 21ST, 2015, WAS THE FIRST TIME YOU MET MS. HOLMES?

MR. SCHENK: AND HOW ABOUT THE SECOND DAY? DO YOU KNOW WHETHER THE INSPECTION CARRIED OVER THE NEXT DAY?

MR. SCHENK: YOU DIDN'T GO THAT DAY?

MR. SCHENK: YOUR HONOR, MAY I APPROACH?

MR. SCHENK: (HANDING.) YOUR HONOR, I WOULD LIKE TO SHOW THE WITNESS SOME TEXT MESSAGES. THESE ARE EXHIBIT 5387B. B WAS ALREADY PREVIOUSLY ADMITTED. THESE ARE THREE PAGES FROM -- THE PAGE NUMBERS ARE 26, 27, AND 28.

MR. SCHENK: AND PERMISSION TO PUBLISH?

MR. SCHENK: THANK YOU.

MR. SCHENK: DR. DHAWAN, I'M SHOWING YOU TEXT MESSAGES THAT WERE SENT BETWEEN MR. BALWANI AND MS. HOLMES ON THESE TWO DAYS THAT WE'RE TALKING ABOUT, SEPTEMBER 22ND AND SEPTEMBER 23RD OF 2015. YOU WERE NOT ON THESE TEXT MESSAGES; IS THAT RIGHT?

MR. SCHENK: OKAY. MR. BALWANI STARTS, "CAN YOU SEE HIM?

MR. SCHENK: "VERY HOSTILE SO FAR. THEY SAY HAVE COMPLAINTS." AND DO YOU MIND READING THE NEXT ONE?

MR. SCHENK: AND THEN IF YOU CAN CONTINUE THE NEXT TWO.

MR. SCHENK: "GARY IS TRYING TO BE PRO THERANOS."

MR. SCHENK: AND WOULD YOU CONTINUE.

MR. SCHENK: THANK YOU. AND NOW WE'LL TURN TO THE NEXT PAGE, PAGE 27. MR. BALWANI WRITES, "OUR VALIDATION REPORTS ARE TERRIBLE. REALLY PAINFUL GOING THRU THIS PROCESS. SAME ISSUES FDA POINTED OUT?" MS. HOLMES RESPONDS, "CAN WE GET SOMEONE HERE TO SUPPLEMENT/UPDATE/HELP EXPLAIN? "OR IS THE FEEDBACK COMING FROM FDA." MR. BALWANI RESPONDS "NO." MS. HOLMES WRITES, "WE CAN PROVIDE OUR FDA SUBMISSION DATA." AND MR. BALWANI RESPONDS, "NOT FROM FDA. NOTHING TO DO WITH FDA." AND THEN MS. HOLMES WRITES, "WILL MAKE SURE ALL TEAMS ARE REVIEWING REPORTS. LET ME KNOW ANYTHING ELSE CAN DO TO SUPPORT." MR. BALWANI, "GOING BAD SO FAR. PRAY. "DANIEL HAS NOTHING READY. "TOLD ME EVERYTHING IS IN THE BINDERS. "NOT THERE." MS. HOLMES, "PRAYING. "AT MY DESK. "TELL ME HOW I CAN HELP. "I'M COMING THERE." AND THEN ON PAGE 28, THE FINAL TEXT IN THIS SET FROM MS. HOLMES. "PRAYING CONTINUALLY." DR. DHAWAN, DURING THE INSPECTION, DID YOU HAVE ANY IDEA WHETHER THE INSPECTION WAS GOING WELL OR NOT GOING WELL?

MR. SCHENK: SO THERE --

MR. SCHENK: AND YOU DIDN'T KNOW WHETHER MS. HOLMES OR MR. BALWANI WERE PRAYING DURING THE INSPECTION, THAT WAS NOT SOMETHING THAT YOU WERE AWARE OF?

MR. SCHENK: IF YOU COULD NOW GO BACK TO YOUR BINDER, IT'S TAB 2548. YOUR HONOR, THE GOVERNMENT OFFERS 2548 PURSUANT TO STIPULATION?

MR. SCHENK: AND IF WE CAN START AT THE VERY BOTTOM. THERE'S AN OCTOBER 19TH, 2015 EMAIL, AND IT READS, "COULD YOU PLEASE CONTACT ME AS A MATTER OF URGENCY. OUR CONVERSATION WILL BE ON A BACKGROUND BASIS. I WILL NOT QUOTE YOU OR EVEN SAY WE HAVE BEEN IN CONTACT. BUT IT IS IMPERATIVE THAT WE SPEAK?" AND THEN THE EMAIL ABOVE IS FROM YOU FORWARDING THIS TO MR. BALWANI; IS THAT RIGHT?

MR. SCHENK: AND YOU WRITE, "SUNNY. "FYI. "I TALKED TO THIS GUY SUPERFICIALLY -- TOLD HIM TO CALL YOU ALL DIRECTLY FOR INFO. "CALL ME FOR DETAILS." WHO WAS "THIS GUY"?

MR. SCHENK: AND MR. BALWANI THEN RESPONDS TO YOU AT THE TOP. "THANKS, WILL SPEAK IN THE A.M. THANKS FOR THE HELP AND STICKING BY. APPRECIATE IT? "IN FUTURE, JUST DON'T ANSWER ANY QUESTIONS AS THEY WILL TRAP YOU OR MISQUOTE YOU. WE ARE TRYING TO GET ON TOP OF THE SITUATION AND RELEASE OUR STATEMENTS TO REFUTE THE FALSEHOODS, BUT THIS STUFF TAKES TIME." MR. BALWANI TALKS ABOUT "THE SITUATION" IN THIS EMAIL. WAS -- DID YOU HAVE SEPARATE CONVERSATIONS WITH MR. BALWANI ABOUT WHATEVER IT IS THAT HE'S REFERRING TO AS "THE SITUATION"?

MR. SCHENK: DID MR. BALWANI BRIEF YOU AT ANY POINT ABOUT WHAT HE WAS CONCERNED ABOUT, WHAT WAS HAPPENING, WHAT SITUATION HE WAS TRYING TO GET ON TOP OF?

MR. SCHENK: OKAY. SO -- I'M SORRY TO INTERRUPT YOU. YOU LEARNED ABOUT INFORMATION IN THE MEDIA, BUT NOT FROM THE PERSON THAT WAS YOUR POINT OF CONTACT AT THE TIME?

MR. SCHENK: OKAY. WOULD YOU TURN TO TAB 2972. YOUR HONOR, THE GOVERNMENT OFFERS EXHIBIT 2972 BY STIPULATION.

MR. SCHENK: DR. DHAWAN, NOW WE'VE MOVED INTO NOVEMBER OF 2015. DANIEL YOUNG IS WRITING YOU AN EMAIL AND IN IT DR. YOUNG WRITES, "DEAR DR. DHAWAN: "I AM TRYING TO SCHEDULE A MEETING TO REVIEW OUR MONTHLY QC DATA FOR SEPTEMBER AND OCTOBER. ARE YOU ABLE TO JOIN IN THIS WEDNESDAY BY PHONE? IF SO, WHAT TIME(S)." MY QUESTION WAS THAT SOMETHING YOU DID BEFORE? HAD YOU REVIEWED MONTHLY QC DATA WITH DR. YOUNG BEFORE THIS?

MR. SCHENK: DO YOU KNOW WHETHER YOU EVEN DID IT ON THIS OCCASION, WHETHER THIS CALL HAPPENED?

MR. SCHENK: I'D LIKE YOU NOW TO TURN TO 3217. YOUR HONOR, AT THIS TIME THE GOVERNMENT MOVES PAGE 1 OF 3217 INTO EVIDENCE.

MR. SCHENK: THANK YOU, YOUR HONOR.

MR. SCHENK: DR. DHAWAN, ON THIS DOCUMENT, ON THIS EMAIL SOMEONE NAMED HEATHER KING IS SENDING YOU AN EMAIL. DO YOU KNOW WHO HEATHER KING WAS?

MR. SCHENK: AND DO YOU KNOW IF YOU HAD MET HER OR WAS THIS THE FIRST INTERACTION YOU HAD WITH HER? DO YOU RECALL?

MR. SCHENK: OKAY.

MR. SCHENK: I'M SORRY. THE SUBJECT IS CMS NOTICE ON IMPOSITION OF SANCTIONS. DO YOU SEE THAT?

MR. SCHENK: AND UNTIL THIS DATE, JULY OF 2016, AND WE GO BACK TO THE SEPTEMBER 21ST, 2015 DATE, DID YOU KNOW DURING THAT PERIOD OF TIME WHETHER THE INSPECTION, THE CMS INSPECTION HAD GONE WELL OR HAD GONE POORLY?

MR. SCHENK: SO WAS THIS EMAIL THE WAY YOU LEARNED THAT THERE WERE SOME CHALLENGES RESULTING FROM THE INSPECTION?

MR. SCHENK: YOUR HONOR, MAY I HAVE ONE MOMENT?

MR. SCHENK: DR. DHAWAN, WAS THERE A MOMENT WHEN THAT YOU STOPPED BEING THE LAB DIRECTOR AT THERANOS?

MR. SCHENK: YOU JUST SAID A MOMENT AGO OCTOBER. WHICH YEAR WAS THAT?

MR. SCHENK: AFTER THE INSPECTION, THE NEXT MONTH?

MR. SCHENK: BUT YOU DIDN'T RECEIVE A DOCUMENT, THAT WAS JUST YOUR ASSUMPTION?

MR. SCHENK: THANK YOU. THANK YOU, YOUR HONOR. NO FURTHER QUESTIONS.

MR. SCHENK: NO OBJECTION.

MR. SCHENK: JUST ONE MOMENT, YOUR HONOR, PLEASE.

MR. SCHENK: NO OBJECTION.

MR. SCHENK: NO, YOUR HONOR.