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Federal Criminal Trialtrial-daytrial-dayJeff SchenkLance A. WadeDaniel MosleycrossredirectDay 27 - November 3, 2021The court reserved decision on whether Patient BB could testify about a platelet-test result after arguments over notice and lay-opinion limits. Daniel Mosley’s cross-examination covered his Theranos review, investment risks, client introductions, and redemption protection; on redirect, he identified capabilities he believed already existed before he invested.
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Day 27 - November 3, 2021

Court Reserves BB Testimony Issue; Mosley Details Investment Review and Beliefs

Judge Edward J. Davila
4Proceedings
2Pages
1Witnesses
2,164Lines
Day 27 of 51
Appearing:

The court reserved decision on whether Patient BB could testify about a platelet-test result after arguments over notice and lay-opinion limits. Daniel Mosley’s cross-examination covered his Theranos review, investment risks, client introductions, and redemption protection; on redirect, he identified capabilities he believed already existed before he invested.

Full day summary

The court heard arguments over proposed testimony from Patient BB concerning differences involving a platelet test. The defense argued that the assay had not been identified in the bill of particulars and that interpreting the results required scientific testimony; the government acknowledged the omission but asserted that prior disclosures supplied notice and that BB would testify from personal knowledge. The court expressed concern under its earlier motion-in-limine order and reserved decision for a written order. In supplemental argument outside the jury’s presence, the government proposed postponing BB’s testimony to allow more preparation, but the defense maintained that delay would not cure the asserted notice problem. No ruling was announced. On cross-examination, Daniel Mosley described reviewing Theranos materials, speaking with Holmes, and assessing information about assays, Walgreens, the Johns Hopkins material, and a report he believed Pfizer had authored. He acknowledged substantial financial and operational risks, including the possibility of losing the entire investment, while explaining the redemption protection he sought for himself and participating clients. Emails documented introductions to prospective investors and contemplated investments, and Mosley testified that David Boies had described the technology as sound while identifying performance at scale as the principal risk. The court excluded three post-investment introduction emails as irrelevant but allowed questioning about the introductions. On redirect, Mosley distinguished future plans from capabilities he believed Theranos already possessed before he invested. He said he understood the company to offer broad and accurate testing, finger-stick collection using small samples, its own devices, a healthy Walgreens relationship, meaningful revenue, and a completed study reflected in the purported Pfizer report. He denied encouraging introduced clients to invest and characterized contrary wording in an email as loose language referring to introductions.

1. Hearing on Motion to Exclude BB Testimony

Before the jury entered, the court heard the defense's motion to exclude BB's proposed platelet-test testimony and reserved its ruling. The jury then returned, received scheduling and courtroom instructions, and Daniel Mosley resumed as the previously sworn witness.

Procedural
Hearing on Motion to Exclude BB Testimony

The court reserved decision on excluding BB's platelet-test testimony after questioning whether it would conflict with an earlier order limiting accuracy evidence to assays identified in the bill of particulars.

Procedural
Juror Admonition and Daily Trial Schedule

Jurors indicated no outside contact or information, and the court reviewed breaks and the daily schedule before Daniel Mosley's testimony resumed.

Highlights

2. Daniel Mosley — Cross/Redirect (Continued)

Daniel Mosley’s cross-examination examined the materials, risks, protections, and representations behind his Theranos investment before a brief outside-the-jury argument concerning Patient BB. After evidentiary rulings narrowed the remaining questioning, redirect addressed which Theranos capabilities Mosley believed already existed before he invested.

Cross
Daniel MosleyLance A. Wade
911 lines

Mosley described how Theranos materials, outside relationships, future plans, known risks, and negotiated investor protections shaped his preliminary analysis and investment decision.

Procedural
Supplemental Argument on Motion to Exclude BB Testimony

The government offered to postpone Patient BB's proposed platelet-test testimony, while the defense argued that more preparation time would not cure its asserted notice problem; no ruling was announced.

Cross
Daniel MosleyLance A. Wade
975 lines

Mosley described investor introductions, continuing diligence, outside validation, and rollout risk while defense counsel tested his regulatory recollection and documented the path to several proposed investments.

sidebar
Sidebar on Defense Exhibits and Evidentiary Objections

The court excluded three post-investment introduction emails but allowed questions about the introductions, then directed the defense to finish cross-examination promptly so the government retained redirect time.

Cross
Daniel MosleyLance A. Wade
19 lines

Mosley confirmed facilitating introductions involving Holmes, including contacts requested by Henry Kissinger and a connection with his client Alice Walton.

Redirect
Daniel MosleyJeff Schenk
96 lines

Mosley said he understood several Theranos claims as current capabilities, not future vision, and denied encouraging the sophisticated clients he introduced to invest.

Highlights

Daniel Mosley — Crosstestimony highlightThe defense walked Mosley through the risks identified in his preliminary outline; he acknowledged substantial projected revenue growth, the possibility of losing the entire investment, and his desire for more information.Daniel Mosley — Cross“IT CERTAINLY HAD RISK, AND IT WAS CERTAINLY POSSIBLE TO LOSE ALL OF YOUR MONEY, YES.”— Daniel MosleyMosley expressly acknowledged the investment's potential for complete loss.Daniel Mosley — Cross (Resumed)evidence eventAn admitted post-meeting email showed a proposed $25 million personal investment by Andreas Dracopoulos, an agreement for a $100 million investment associated with Jerry Tubergen, possible later Walton participation, and Mosley's own hope to invest $6 million.Daniel Mosley — Cross (Resumed)testimony highlightMosley testified that David Boies told him before his investment that Theranos's technology was sound and performing well, while identifying large-scale rollout as the principal risk; Mosley said his practice would have been to relay relevant information to clients.Daniel Mosley — Redirecttestimony highlightMosley testified that, before investing, he believed accurate testing, finger-stick collection using small samples, Theranos's own devices, a healthy Walgreens relationship, and meaningful revenue were current conditions rather than future aspirations.Daniel Mosley — Redirecttestimony highlightMosley said he believed Pfizer had authored a favorable report and read it as documenting a study that had already occurred.Daniel Mosley — Redirect“I READ THAT REPORT AS A STUDY, A REPORT AND A STUDY THAT HAD ALREADY OCCURRED.”— Daniel MosleyMosley distinguished the Pfizer-related material from a future goal and treated it as a completed study.
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