Skip to content
Elizabeth Holmes- Case Archive
Federal Criminal TrialtranscripttranscriptSo-Han Spivey — Direct/Cross (Recall) - Day 33 - Federal Criminal TrialSo-Han Spivey testified about approval of Theranos advertising expenses, then clarified on cross-examination that she handled payment information rather than advertising content.
Robert S. LeachLance A. WadeEdward J. DavilaSo-Han SpiveyMr. LeachSo-Han SpiveyJudge DavilaMr. WadeCourt Clerkdirectcross
Federal Criminal Trial/Day 33/November 16, 2021
3 pages·2 witnesses·2,585 lines
So-Han Spivey testified about approval of Theranos advertising expenses, then clarified on cross-examination that she handled payment information rather than advertising content.
← Day 32
Day 34 →
DirectCross

So-Han Spivey — Direct/Cross (Recall)

Robert S. Leach Lance A. Wade So-Han Spivey
271 lines
Proceedings
DirectSo-Han Spivey — DirectLine 7
CrossSo-Han Spivey — CrossLine 16
DirectDirect So-Han Spivey Robert S. Leach
1

DIRECT EXAMINATION BY MR. LEACH:

2

MR. LEACH: WELCOME BACK, MS. SPIVEY. YOU PREVIOUSLY TESTIFIED IN THIS CASE, DO YOU RECALL THAT?

4

MR. LEACH: AND YOU SERVED AS THE CONTROLLER FOR THERANOS FOR A NUMBER OF YEARS, 2010 UP THROUGH 2016 OR '17?

5

SO-HAN SPIVEY: FROM 2006.

6

MR. LEACH: OKAY. I HAVE ONE BRIEF TOPIC I WANTED TO COVER WITH YOU, MS. SPIVEY. MAY I APPROACH THE WITNESS, YOUR HONOR?

8

BY MR. LEACH:

9

MR. LEACH: (HANDING.) MS. SPIVEY, I'VE PLACED BEFORE YOU WHAT HAS BEEN MARKED AS EXHIBIT 5454. DO YOU HAVE THAT IN FRONT OF YOU?

11

MR. LEACH: DOES THIS APPEAR TO BE AN EMAIL FROM YOU TO ELIZABETH HOLMES AND SUNNY BALWANI DATED JULY 25TH, 2015?

13

MR. LEACH: AND DOES THIS RELATE TO A COMPANY CALLED HORIZON MEDIA?

15

MR. LEACH: AND DOES IT RELATE TO POTENTIAL ADVERTISING IN MEDIA THAT THERANOS WAS CONTEMPLATING PURCHASING?

17

MR. LEACH: AND WERE YOU SENDING THIS TO MS. HOLMES AND MR. BALWANI TO OBTAIN THEIR APPROVAL FOR CERTAIN PAYMENTS SUGGESTED IN THIS EMAIL?

19

MR. LEACH: YOUR HONOR, I OFFER EXHIBIT 5454 INTO EVIDENCE.

20

MR. WADE: 802, YOUR HONOR.

21

JUDGE DAVILA: IS THIS A FOUR-PAGE, A FOUR-PAGE DOCUMENT?

22

MR. LEACH: IT'S A FIVE-PAGE DOCUMENT, YOUR HONOR.

23

JUDGE DAVILA: THIS IS OFFERED, MR. LEACH, FOR?

24

MR. LEACH: A BUSINESS RECORD.

25

JUDGE DAVILA: OKAY. DO YOU WANT TO LAY A FOUNDATION?

27

MR. LEACH: MS. SPIVEY, DID YOU, IN THE ORDINARY COURSE OF BUSINESS, DID YOU OBTAIN APPROVALS FROM MS. HOLMES AND MR. BALWANI FOR EXPENSES OVER A CERTAIN THRESHOLD?

29

MR. LEACH: AND WHAT WAS THAT THRESHOLD?

30

SO-HAN SPIVEY: SO FOR SUNNY -- SO ALL OF THE EXPENSES WOULD GO THROUGH THE APPROVAL OF EITHER SUNNY BALWANI OR ELIZABETH HOLMES.

31

MR. LEACH: OKAY. SO WHATEVER THE DOLLAR VALUE?

33

MR. LEACH: AND DO THE EXPENSES IN HERE RELATE TO THE DOLLAR VALUE IN THE MANY MILLIONS OF DOLLARS?

35

MR. LEACH: AND DID YOU SEND THIS EMAIL IN THE ORDINARY COURSE OF BUSINESS?

37

MR. LEACH: AND IS THE INFORMATION IN EXHIBIT 5454 PREPARED AT OR AROUND THE TIME BASED ON INFORMATION FROM PEOPLE WITH KNOWLEDGE?

39

MR. LEACH: AND WAS IT YOUR PRACTICE TO KEEP AND RETAIN THE EMAILS THAT YOU WOULD SEND TO MS. HOLMES AND MR. BALWANI RESPECTING CERTAIN APPROVALS FOR CERTAIN EXPENSES?

40

SO-HAN SPIVEY: WHAT DO YOU MEAN?

41

MR. LEACH: WOULD YOU RETAIN EMAILS IN THE COURSE OF YOUR BUSINESS TO MAKE SURE THAT YOU HAD A RECORD OF WHAT MS. HOLMES OR MR. BALWANI WERE APPROVING FOR EXPENSES?

43

MR. LEACH: AND WOULD -- AFTER OBTAINING THE APPROVAL, WOULD THOSE EXPENSES BE ENTERED INTO THE GENERAL LEDGER?

45

MR. LEACH: AND IN THE EMAIL THERE'S TWO ATTACHMENTS. WERE YOU SENDING THESE ATTACHMENTS SO THAT MR. BALWANI AND MS. HOLMES WOULD KNOW WHAT YOU WERE SEEKING APPROVAL OF?

47

MR. LEACH: YOUR HONOR, I OFFER EXHIBIT 5454.

48

MR. WADE: SAME OBJECTION.

49

JUDGE DAVILA: ALL RIGHT. THANK YOU. THIS IS ADMITTED, 803(6), IT IS ADMITTED AS A BUSINESS RECORD, AND IT MAY BE PUBLISHED.

50

(GOVERNMENT'S EXHIBIT 5454 WAS RECEIVED IN EVIDENCE.)

51

MR. LEACH: THANK YOU, YOUR HONOR.

52

MR. LEACH: MS. SPIVEY, I'D LIKE TO DRAW YOUR ATTENTION TO THE EMAIL AT THE BOTTOM OF THE CHAIN. THIS APPEARS -- THE BOTTOM EMAIL APPEARS TO BE FROM CARISA BIANCHI. ARE YOU FAMILIAR WITH HER?

54

MR. LEACH: AND WHO IS SHE?

55

SO-HAN SPIVEY: SHE IS THE HEAD OF THE MARKETING DEPARTMENT.

56

MR. LEACH: AND THE SUBJECT IS HORIZON MEDIA. WHAT IS HORIZON MEDIA?

57

SO-HAN SPIVEY: THAT'S THE COMPANY THAT HANDLES A MAJORITY OF THE MARKETING AND ADVERTISING ACTIVITIES FOR THE COMPANY.

58

MR. LEACH: AND WHEN YOU SAY MARKETING AND ADVERTISING ACTIVITIES, DOES THAT INCLUDE TELEVISION ADVERTISEMENTS?

60

MR. LEACH: AND DOES IT INCLUDE PRINTED MEDIA ADVERTISEMENTS?

62

MR. LEACH: AND IN THIS EMAIL, AT THE BOTTOM MS. BIANCHI IS WRITING "HI SUNNY, "HERE IS THE DETAILED LIST OF WHAT IS INCLUDED IN THE PHOENIX MEDIA PLAN FOR 3TH," I THINK SHE MEANT 3RD, "AND 4TH QUARTER. ALL INVOICES REFLECT DATES THROUGH END OF YEAR." DO YOU SEE THAT LANGUAGE?

64

MR. LEACH: AND THE 3RD AND 4TH QUARTER, THAT WOULD BE OF 2015?

66

MR. LEACH: IN NUMBER 2 -- WELL, IN NUMBER 1, DO YOU SEE WHERE THERE ARE SOME EXPENSES RELATING TO OOH/CINEMA, PEOPLE MAGAZINE COVER, AZ REPUBLIC, DIGITAL/MOBILE ACTIVITY? DO YOU SEE THAT LAID OUT IN NUMBER 1?

68

MR. LEACH: AND AZ REPUBLIC, IS THAT THE ARIZONA REPUBLIC?

69

SO-HAN SPIVEY: I BELIEVE SO.

70

MR. LEACH: THAT'S THE NEWSPAPER IN ARIZONA?

71

SO-HAN SPIVEY: I THINK SO.

72

MR. LEACH: IN NUMBER 2 IT SAYS, "WIRE FUNDS DUE 7/31 -- $1,126,661." DO YOU SEE THAT?

74

MR. LEACH: AND BENEATH THAT IS THERE THE WORDS 3Q AND 4Q, T.V. AND ANOTHER NUMBER IN THE 800,000?

76

MR. LEACH: AND BENEATH THAT DO YOU SEE WHERE IT SAYS, "I WILL HAVE THE 3Q AND 4Q BUYS READY FOR YOUR AND ELIZABETH'S REVIEW NEXT TUESDAY"?

78

MR. LEACH: AND DOES THAT RELATE TO POTENTIAL MEDIA EXPENSES FOR THE 3RD AND 4TH QUARTER OF 2015?

80

MR. WADE: YOUR HONOR, 602. 602.

81

JUDGE DAVILA: CAN YOU LAY A FOUNDATION FOR HER KNOWLEDGE?

82

BY MR. LEACH:

83

MR. LEACH: YOU ULTIMATELY REVIEWED AND FORWARD THIS EMAIL TO MS. HOLMES AND MR. BALWANI; IS THAT CORRECT?

85

MR. LEACH: SO WHEN YOU'RE SENDING THIS TO MS. HOLMES AND MR. BALWANI, WAS IT IMPORTANT FOR YOU TO HAVE A GENERAL UNDERSTANDING OF WHAT YOU WERE SEEKING APPROVAL FOR?

87

JUDGE DAVILA: AND DID SHE --

88

BY MR. LEACH:

89

MR. LEACH: WHEN YOU'RE EMAILING MS. HOLMES AND MR. BALWANI, "I WILL HAVE THE 3Q AND 4Q BUYS READY FOR YOUR AND ELIZABETH'S REVIEW NEXT TUESDAY," WHAT DID YOU UNDERSTAND MS. BIANCHI TO MEAN BY THAT?

90

SO-HAN SPIVEY: SHE IS SEEKING APPROVAL FROM ELIZABETH HOLMES AND SUNNY BALWANI FOR THE T.V. SPEND FOR 3Q AND 4Q.

91

MR. LEACH: THANK YOU. LET'S LOOK AT PAGE 2, PLEASE.

92

JUDGE DAVILA: I'LL ALLOW THAT.

93

MR. LEACH: THANK YOU, YOUR HONOR.

94

MR. LEACH: DO YOU SEE WHERE IT SAYS "3Q AND 4Q RADIO ($282,570). "I WILL HAVE THE 3Q AND 4Q BUYS READY FOR YOUR AND ELIZABETH'S REVIEW NEXT TUESDAY." DO YOU SEE THAT LANGUAGE?

96

MR. LEACH: AND DID YOU UNDERSTAND THIS TO BE MS. BIANCHI SEEKING APPROVAL FOR RADIO ADVERTISEMENTS IN THE SECOND HALF OF 2015?

98

MR. LEACH: THE LAST ENTRY UNDER 2 IS "SEPTEMBER DJ AND T.V. HOST ON-AIR SEGMENTS $24,920. "FINALIZING TIMING AND DETAILS, TARGETING FOR SEPTEMBER. "ATTACHING PROPOSED DJ COPY POINTS." DO YOU SEE THAT?

100

MR. LEACH: AND ARE THOSE COPY POINTS ONE OF THE ATTACHMENTS TO THE EMAIL THAT YOU FORWARDED TO MS. HOLMES AND MR. BALWANI?

101

SO-HAN SPIVEY: I AM NOT SURE.

102

MR. LEACH: LET ME DRAW YOUR ATTENTION TO THE -- IF WE CAN ZOOM OUT, PLEASE, MS. HOLLIMAN, AND GO BACK TO PAGE 1, PLEASE. IF WE CAN ZOOM IN ON THE TOP HALF OF THIS PARAGRAPH, DO YOU SEE THE MIDDLE EMAIL, MS. SPIVEY, WHERE CARISA EMAILS YOU, "HI DANISE, "PER MY EARLIER EMAIL, HERE IS THE RECAP I SENT TO ELIZABETH AND SUNNY EARLIER TODAY WHICH RECAPS ALL MEDIA ACTIVITY, WIRE DATES AND AMOUNTS." DO YOU SEE THAT LANGUAGE?

104

MR. LEACH: AND THEN ABOVE YOU WRITE TO MS. HOLMES AND MR. BALWANI, "HI SUNNY/ELIZABETH, "CARISA GAVE MORE DETAILS ABOUT THE WIRE REQUEST. DO YOU WANT ME TO SUBMIT A WIRE FOR MONDAY DELIVERY?" DO YOU SEE THAT?

106

MR. LEACH: AND DO YOU SEE THERE ARE TWO ATTACHMENTS IN THE SUBJECT MATTER EMAIL PX OOH AND DJ COPY POINTS?

108

MR. LEACH: AND WERE THOSE MATERIALS THAT YOU WERE SEEKING TO HAVE MS. HOLMES AND MR. BALWANI APPROVE?

110

MR. LEACH: AND YOU BELIEVED THOSE TO BE THE ATTACHMENTS TO THE EMAIL?

112

MR. LEACH: IF WE CAN ZOOM OUT AGAIN, MS. HOLLIMAN. I WANT TO DRAW YOUR ATTENTION BACK TO THE BOTTOM OF THE EMAIL, MS. SPIVEY, THERE'S A NUMBER "WIRE FUNDS DUE 7/31 -- $1,126,661." DO YOU SEE THAT NUMBER?

114

MR. LEACH: KEEP THAT NUMBER IN MIND. AND I'D LIKE TO DRAW YOUR ATTENTION TO WHAT IS EXHIBIT 5248. AND PERMISSION TO DISPLAY, YOUR HONOR?

116

BY MR. LEACH:

117

MR. LEACH: MS. SPIVEY, DO YOU SEE THE NAME -- DOES THIS APPEAR TO BE A RECORD OF A WIRE TRANSFER?

119

MR. LEACH: AND DO YOU SEE THE NAME HORIZON MEDIA, INC. DOWN AT THE BOTTOM?

121

MR. LEACH: AND DO THEY APPEAR TO BE THE BENEFICIARY OF THIS PARTICULAR WIRE?

123

MR. LEACH: AND IF I COULD DRAW YOUR ATTENTION TO THE MIDDLE PORTION OF THE PAGE THERE'S AN AMOUNT OF $1,126,661. DO YOU SEE THAT?

125

MR. LEACH: AND WAS THAT THE SAME DOLLAR AMOUNT THAT YOU WERE SEEKING APPROVAL OF FROM MS. HOLMES AND MR. BALWANI?

127

MR. LEACH: AND BASED ON THESE TWO DOCUMENTS, ARE YOU SATISFIED THAT YOU ULTIMATELY OBTAINED AN APPROVAL IN ONE FORM OR ANOTHER?

129

MR. LEACH: I ALSO DRAW YOUR ATTENTION TO THE DATE TO THE RIGHT OF THE LINE OMAD. DO YOU SEE 20150803?

131

MR. LEACH: AND THAT'S A WEEK OR SO AFTER THE JULY 25TH EMAIL THAT WE LOOKED AT IN EXHIBIT 5454?

133

MR. LEACH: MAY I HAVE A MOMENT, YOUR HONOR?

135

(DISCUSSION AMONGST GOVERNMENT COUNSEL OFF THE RECORD.)

136

MR. LEACH: I HAVE NO FURTHER QUESTIONS. THANK YOU, MS. SPIVEY.

CrossCross So-Han Spivey Lance A. Wade
138

CROSS-EXAMINATION BY MR. WADE:

139

MR. WADE: GOOD MORNING, MS. SPIVEY. MY NAME IS LANCE WADE, AND I REPRESENT MS. HOLMES. I'M GOING TO ASK YOU A FEW QUESTIONS THIS MORNING, OKAY?

141

MR. WADE: IT'S NICE TO SEE YOU AGAIN. IF I COULD PULL UP EXHIBIT 5454, AND JUST BLOW UP THE BOTTOM EMAIL. YOU'VE TESTIFIED THAT THIS EMAIL RELATES TO SOME MEDIA ACTIVITY OF HORIZON MEDIA; CORRECT?

143

MR. WADE: DID YOU HAVE ANY ROLE WITH RESPECT TO MEDIA CONTENT OR THE PREPARATION OF ANY ADVERTISING FOR THE COMPANY?

145

MR. WADE: OKAY. AND WAS THAT MS. BIANCHI AND OTHERS WHO WERE INVOLVED IN THOSE EFFORTS?

147

MR. WADE: AND WHEN THERE IS APPROVAL OF THIS SOUGHT, DO YOU FOCUS ON THE CONTENT OF THE APPROVAL, OR DO YOU JUST MAKE SURE THERE'S ENOUGH INFORMATION NECESSARY FOR THE EXPENSE TO BE APPROVED?

148

SO-HAN SPIVEY: YEAH, I FOCUS ON WHAT'S -- WELL, INFORMATION THAT SUNNY BALWANI AND ELIZABETH HOLMES NEEDS IN ORDER TO APPROVE THE PAYMENT.

149

MR. WADE: RIGHT. SO IN THIS CASE FOR ADVERTISING, FOR EXAMPLE, YOU WEREN'T FOCUSSED ON WHAT THE ADVERTISING WOULD SAY, FOR EXAMPLE?

151

MR. WADE: OKAY. AND YOU DIDN'T PLAY ANY ROLE IN THAT ADVERTISING; CORRECT?

153

MR. WADE: AND IF WE LOOK AT THE BOTTOM -- IF WE LOOK AT ITEM 2, AND CAN WE BRING UP THE TOP OF THE NEXT PAGE AS WELL SO WE CAN SEE THE FULL ITEM. AND I'D LIKE TO JUST ASK YOU A COUPLE OF QUESTIONS ABOUT ITEM 2. DO YOU SEE IN THE FIRST HEADING UNDER ITEM 2 IT SAYS, "3Q AND 4Q T.V. ($819,171)." DO YOU SEE THAT?

155

MR. WADE: AND IT NOTES THAT THE BUYS WOULD BE READY FOR REVIEW IN THE FUTURE; CORRECT?

157

MR. WADE: SO AS YOU UNDERSTOOD IT AT THIS TIME THERE HAD BEEN NOTHING CONCRETE FINALIZED IN TERMS OF WHAT WOULD BE BOUGHT; RIGHT?

158

SO-HAN SPIVEY: BASED ON THIS EMAIL, YES.

159

MR. WADE: YES, THIS WAS SOME KIND OF FUTURE ACTIVITY?

161

MR. WADE: AND DID YOU PLAY ANY ROLE IN THAT FUTURE ACTIVITY AT ALL?

163

MR. WADE: OKAY. AND WITH RESPECT TO THE SECOND ITEM, ARE THE ANSWERS THE SAME FOR THAT, FUTURE ACTIVITY THAT YOU DIDN'T PLAY A ROLE IN?

165

MR. WADE: OKAY. AND IF WE LOOK AT THE THIRD ITEM THERE IT SAYS, "FINALIZING TIMING AND DETAILS." DO YOU SEE THAT?

167

MR. WADE: AND SO YOU UNDERSTOOD THAT THE DETAILS WEREN'T YET FINALIZED; CORRECT?

169

MR. WADE: AND YOU DIDN'T PLAY ANY ROLES IN THE DETAILS AFTER THIS EMAIL, DID YOU?

171

MR. WADE: OKAY. AND IT NOTES TARGETING FOR SEPTEMBER. THAT'S A COUPLE OF MONTHS IN THE FUTURE AFTER JULY; CORRECT?

173

MR. WADE: AND YOU DON'T KNOW WHAT ULTIMATELY HAPPENED WITH RESPECT TO ANY OF THIS, DO YOU?

175

MR. WADE: DO YOU KNOW WHETHER THESE ADS EVER -- THAT ARE IDENTIFIED IN ITEM 2 WERE EVER RAN?

176

SO-HAN SPIVEY: I DON'T KNOW.

177

MR. WADE: OKAY. IT SAYS, "ATTACHING PROPOSED DJ COPY POINTS." DO YOU SEE THAT THERE?

179

MR. WADE: AND THERE WAS AN ATTACHMENT TO THE EMAIL. MR. LEACH NOTED THAT; CORRECT?

181

MR. WADE: BUT YOU DIDN'T PLAY ANY ROLE IN FINALIZING THE PROPOSED TALKING POINTS, DID YOU?

183

MR. WADE: OKAY. LET'S TURN TO PAGE 4 OF THE EXHIBIT, AND LET'S BLOW UP THE FIRST SECTION THERE. AND THIS HERE TALKS ABOUT "SMALLER SAMPLES. SMALLER NEEDLES. A BETTER EXPERIENCE." DO YOU SEE THAT?

185

MR. WADE: AND YOU HAD SEEN PROMOTIONS FROM THE COMPANY ALONG THOSE LINES PREVIOUSLY I TAKE IT?

186

SO-HAN SPIVEY: SOMETHING LIKE THAT.

187

MR. WADE: DO YOU SEE THE NEXT LINE IT SAYS, "MANY OF THERANOS TESTS REQUIRE ONLY A FEW DROPS OF BLOOD." DO YOU SEE THAT?

189

MR. WADE: AND YOU UNDERSTOOD THAT TO BE THE MICRO-SAMPLE THAT THE COMPANY WOULD USE FOR SMALL SAMPLE TESTING?

191

MR. WADE: OKAY. SOMETIMES REFERRED TO AS THE NANOTAINER; IS THAT RIGHT?

193

MR. WADE: OKAY. AND THEN IT SAYS, "ALL OF OUR TESTS, INCLUDING VENOUS DRAWS, REQUIRE SMALLER SAMPLES THAN TRADITIONAL LABS." RIGHT?

195

MR. WADE: AND SO -- AND YOU UNDERSTOOD THAT AT THIS TIME THAT THE VENOUS DRAWS WOULD SOMETIMES BE USED IN THERANOS LABS?

196

SO-HAN SPIVEY: YOU MEAN BASED ON THIS DOCUMENT?

199

MR. WADE: AND THAT THEY TRIED TO USE A SMALLER SAMPLE VENOUS DRAW WHEN THEY DID THAT?

201

MR. WADE: OKAY. AND, IN FACT, IN THE NEXT LINE THERE IT ACTUALLY TALKS ABOUT THE SMALLEST VENOUS DRAW SAMPLE POSSIBLE. DO YOU SEE THAT?

203

MR. WADE: AND HOW THERANOS TESTS MEAN LESS BLOOD. DO YOU SEE THAT?

205

MR. WADE: OKAY. AND YOU UNDERSTOOD THAT AT THE TIME; RIGHT?

207

MR. WADE: OKAY. LET'S GO TO -- IF WE CAN BOLD BACK OUT AND LOOK AT THE SECOND SENTENCE. YOU UNDERSTOOD THAT THESE PROPOSED TALKING POINTS ALSO -- AND AGAIN, THESE WERE -- THIS WAS SOMETHING THAT MS. HOLMES APPROVED; CORRECT? I BELIEVE THAT WAS YOUR TESTIMONY, MS. HOLMES APPROVED THIS OR MR. BALWANI?

208

SO-HAN SPIVEY: THEY APPROVED THE WIRE.

209

MR. WADE: THEY APPROVED THE WIRE. AND YOU HAD SENT THEM THIS INFORMATION; RIGHT?

211

MR. WADE: AND INCLUDING THIS INFORMATION ABOUT THE VENOUS TESTING; RIGHT?

213

MR. WADE: OKAY. AND THERE'S ALSO AN EMPHASIS HERE ON AFFORDABLE PRICING. DO YOU SEE THAT?

215

MR. WADE: AND YOU UNDERSTOOD THAT THAT WAS THE FOCUS OF THE COMPANY'S ADVERTISING AT THE TIME; RIGHT?

216

SO-HAN SPIVEY: WHAT DOES THAT MEAN?

217

MR. WADE: YOU REMEMBER THE COMPANY WAS FOCUSSED ON TRYING TO PROVIDE ITS SERVICES AT LOW PRICES?

219

MR. WADE: AND IF WE GO TO THE NEXT HEADING YOU SEE THE THERANOS EXPERIENCE. AND THE COMPANY WAS VERY FOCUSSED OF TRYING TO PROVIDE A VERY GOOD EXPERIENCE TO ITS CUSTOMERS, WAS IT NOT?

221

MR. WADE: OKAY. AND THERE'S ALSO DISCUSSION WITHIN THIS DOCUMENT ABOUT CONVENIENT LOCATION AND HOURS; RIGHT?

223

MR. WADE: AND HOW TO GO -- THERE'S SOME DISCUSSION AT THE BOTTOM OF HOW TO GET SERVICES WORKING WITH THE PHYSICIAN. DO YOU SEE THAT?

225

MR. WADE: OKAY. I'D LIKE TO SHOW YOU ONE OTHER DOCUMENT FROM THE GOVERNMENT THAT I CAN HAND UP. MAY I APPROACH, YOUR HONOR?

227

BY MR. WADE:

228

MR. WADE: (HANDING.) AND DO YOU RECALL WHEN YOU TESTIFIED PREVIOUSLY THAT YOU TALKED ABOUT HOW SOMETIMES AT MR. BALWANI'S REQUEST YOU WOULD PREPARE BALANCE SHEETS FOR HIM?

230

MR. WADE: AND YOU WOULD FREQUENTLY EMAIL THOSE TO HIM WHEN HE WOULD MAKE REQUESTS?

232

MR. WADE: AND IS THIS ONE OF THOSE OCCASIONS WHERE YOU DID THAT?

234

MR. WADE: AND WHEN I SAY "THIS," THIS IS EXHIBIT 1396; CORRECT?

236

MR. WADE: I MOVE THE ADMISSION OF 1396.

237

MR. LEACH: NO OBJECTION.

238

JUDGE DAVILA: IT'S ADMITTED. IT MAY BE PUBLISHED.

239

(GOVERNMENT'S EXHIBIT 1396 WAS RECEIVED IN EVIDENCE.)

240

BY MR. WADE:

241

MR. WADE: AND THE TIME PERIOD FOR THIS PARTICULAR BALANCE SHEET IS JANUARY 8TH, 2014; CORRECT?

243

MR. WADE: AND IF WE GO TO THE NEXT PAGE, YOU UNDERSTOOD THIS TO BE A TRUE AND CORRECT BALANCE SHEET AS OF THAT DATE?

244

SO-HAN SPIVEY: FROM THIS EMAIL IT SEEMS LIKE WE'RE MAKING SOME ASSUMPTIONS, SO I'M NOT SURE IF THAT WAS AN ACCURATE NUMBER AT THAT TIME.

245

MR. WADE: OKAY. WELL, LET'S LOOK BACK AT THAT EMAIL. IN THE REQUEST MR. BALWANI ASKED FOR A BALANCE SHEET, ASSUMING THE EQUITY TRANSACTION DOLLARS IS IN AND THE $75 MILLION FROM WAG BY THEN. DO YOU SEE THAT?

247

MR. WADE: AND DO YOU RECALL THAT THOSE WERE PAYMENTS THAT CAME IN LATE IN THE PRIOR YEAR AND HE WAS ASKING HERE WHETHER THEY HAD BEEN ENTERED INTO THE BOOKS?

248

SO-HAN SPIVEY: I AM NOT SURE.

249

MR. WADE: YOU DON'T RECALL AS YOU SIT HERE?

250

SO-HAN SPIVEY: I DON'T RECALL WHEN THE MONEY WAS IN AND WHAT THIS ASSUMPTION WAS MADE BY, WHAT THAT MEANS.

251

MR. WADE: OKAY. WHATEVER IT WAS DURING THIS TIME PERIOD, WHEN HE ASKED YOU FOR THE BALANCE SHEET, YOU DID YOUR BEST TO PROVIDE THE MOST ACCURATE BALANCE SHEET THAT YOU COULD AT THE TIME BASED UPON THE STATE OF THE BOOKS AND SENT IT BACK TO MR. BALWANI?

253

MR. WADE: OKAY. NO FURTHER QUESTIONS, YOUR HONOR.

254

JUDGE DAVILA: MR. LEACH?

255

MR. LEACH: NOTHING FURTHER, YOUR HONOR.

256

JUDGE DAVILA: MAY THIS WITNESS BE EXCUSED?

257

MR. LEACH: YES, YOUR HONOR.

258

MR. WADE: SHE MAY.

259

JUDGE DAVILA: THANK YOU, MS. SPIVEY. YOU MAY GO. YOU'RE EXCUSED. DOES THE GOVERNMENT HAVE ANOTHER WITNESS TO CALL?

260

MR. LEACH: YES, YOUR HONOR. THE GOVERNMENT CALLS BRIAN GROSSMAN.

261

JUDGE DAVILA: SIR, IF YOU COULD JUST STAND THERE FOR JUST A MOMENT.

262

COURT CLERK: EXCUSE ME.

263

JUDGE DAVILA: AND IF YOU WOULD RAISE YOUR RIGHT HAND IN A MOMENT WHILE YOU FACE OUR COURTROOM DEPUTY, SHE WILL HAVE A QUESTION FOR YOU.

264

COURT CLERK: GOOD MORNING.

265

(GOVERNMENT'S WITNESS, BRIAN GROSSMAN, WAS SWORN.)

267

COURT CLERK: THANK YOU. PLEASE HAVE A SEAT.

268

JUDGE DAVILA: PLEASE HAVE A SEAT HERE, SIR. I'LL INVITE YOU TO MAKE YOURSELF COMFORTABLE. FEEL FREE TO ADJUST THE CHAIR AND MICROPHONE AS YOU NEED. I'LL ENCOURAGE YOU TO SPEAK DIRECTLY INTO THE MICROPHONE. WHEN YOU ARE COMFORTABLE, WOULD YOU PLEASE STATE YOUR NAME AND THEN SPELL IT, PLEASE.

269

SO-HAN SPIVEY: BRIAN GROSSMAN, B-R-I-A-N, G-R-O-S-S-M-A-N.

270

JUDGE DAVILA: THANK YOU. COUNSEL.

271

MR. LEACH: THANK YOU, YOUR HONOR.

← LIS Evidence and Customer Survey Report Hearings2 of 3Brian Grossman — Direct/Cross →