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Donor Company Under Federal Investigation Alarmed Clinton Donors

- October 19, 2016

New Email Shows Alarm Bells Went Off Over Chelsea’s Fundraising Email From The CEO Of Theranos

Herbert Sandler Forwarded John Podesta A Chelsea Clinton Fundraising Event Email, And Said That, In His Opinion, It Was Not “Wise” For The Clinton Campaign To Let Elizabeth Holmes Host A Clinton Event Because Of “Significant Questions” Surrounding Holmes And Her Company. “I don’t think it was wise to have Elizabeth Holmes host a Clinton event. There are significant questions concerning Holmes and her company. She may come out all right, but it is certainly possible that everyone associated with her venture will be embarrassed. There have been numerous stories concerning her problems. I can discuss if you wish.” (Herbert Sandler Email To John Podesta, “FW: Chelsea And Hillary In Town – Next Week!” John Podesta Wikileaks, 3/14/16)

CLINTON FUNDRAISER ELIZABETH HOLMES COMPANY IS UNDER INVESTIGATION BY FEDERAL PROSECUTOTRS

Theranos Inc. Is Under Investigation By Federal Prosecutors. “Federal prosecutors have launched a criminal investigation into whether Theranos Inc. misled investors about the state of its technology and operations, according to people familiar with the matter.” (Christopher Weaver, John Carreyrou and Michael Siconolfi, “Theranos Is Subject Of Criminal Probe By U.S.” The Wall Street Journal, 4/18/16)

Theranos Inc. CEO Elizabeth Holmes Hosted A Fundraiser For Clinton In California In March Which Concerned Clinton Donors

On March 21st Chelsea Clinton Headlined A Fundraiser For Her Mother With Company CEO Elizabeth Holmes. “Next Monday, Holmes is hosting a fundraiser for Hillary Clinton’s presidential campaign in Palo Alto. The event includes a conversation with former First Family member Chelsea Clinton, and participants who pay $2,700 get to go to a ‘host reception’ with Chelsea.” (Noah Kulwin, “Theranos CEO Elizabeth Holmes Is Holding A Hillary Fundraiser With Chelsea Clinton,” Re/Code, 3/14/16)

  • Elizabeth Holmes Is The CEO Of The “Embattled Blood-Testing Startup Theranos” Which Has Lost “Commercial Partners, Board Members And A Lot Of Credibility Over The Past Few Months.” “Elizabeth Holmes, CEO of the embattled blood-testing startup Theranos, has lost commercial partners, board members and a lot of credibility over the last few months.” (Noah Kulwin, “Theranos CEO Elizabeth Holmes Is Holding A Hillary Fundraiser With Chelsea Clinton,” Re/Code, 3/14/16)

The Fundraiser Had To Be Relocated In An “Abrupt About-Face” From The Theranos HQ To Holmes’ Home Due To The Speculated “Political Liability” And Bad Press Surrounding The Event

Theranos Has Been “Under Intense Scrutiny” After A Wall Street Journal Investigation Revealed Big Problems With The Companies Blood Testing Technology. “Theranos is under intense scrutiny after a Wall Street Journal investigation revealed that the company’s blood testing technology is not as accurate as it had claimed.” (“Chelsea Clinton Cancels Fundraiser At Theranos HQ, Instead Campaigns At Private Bay Area Homes,” NBC-Bay Area, 3/21/16)

Holmes Was Scheduled To Host The Fundraiser At The Theranos Headquarters, But In An “Abrupt About-Face, The Campaign Relocated The Event To Holmes’ Home. “Chief executive Elizabeth Holmes was scheduled to host a fundraiser for Hillary Clinton at Theranos’ headquarters in Silicon Valley on Monday. But in an abrupt about-face, the campaign relocated the event to the private home of a tech entrepreneur.” (Sharon Begley, “Clinton Campaign Relocates Fundraiser Away From Theranos,” Stat News, 3/21/16)

“Bad Press Surrounding The Event May Have Caused The Campaign To Relocate The Event…” “But bad press surrounding the event may have caused the campaign to relocate the event; an official invite obtained by CNBC on Friday showed it would take place at the private home of a tech entrepreneur.” (Arielle Duhaime-Ross, “Here’s A Picture Of Theranos CEO Elizabeth Holmes And Chelsea Clinton,” The Verge, 3/22/16)

The Change In Fundraiser Location “Followed A Storm Of Rough Publicity” Speculating That Clinton’s “Theranos Connection Could Be A Political Liability…” “The change followed a storm of rough publicity last week as outside analysts pondered whether the Theranos connection could become a political liability for Clinton — and perhaps cast a bad light on the company itself.” (Sharon Begley, “Clinton Campaign Relocates Fundraiser Away From Theranos,” Stat News, 3/21/16)

  • Clinton’s Campaign Did Little To “Distance Themselves From” Holmes, Using Her “Clout To Raise Money.” “The Clintons didn’t try very hard to distance themselves from Theranos CEO Elizabeth Holmes. Instead, they graciously used her clout to raise money.” (Arielle Duhaime-Ross, “Here’s A Picture Of Theranos CEO Elizabeth Holmes And Chelsea Clinton,” The Verge, 3/22/16)
  • Despite “Questions That Surround The Accuracy Of Theranos’ Tests” The “Clintons Seem Perfectly Happy To Stand Beside It. “But despite questions that surround the accuracy of Theranos' tests and the company's unwillingness to demonstrate the validity of its inventions, the Clintons seem perfectly happy to stand beside it.” (Arielle Duhaime-Ross, “Here’s A Picture Of Theranos CEO Elizabeth Holmes And Chelsea Clinton,” The Verge, 3/22/16)
  • “The Clinton Campaign Declined To Comment.” “Chelsea Clinton, a graduate of Stanford, which is close to Theranos headquarters in Palo Alto, is still expected to attend. And Holmes will still speak, as will Heather King¬ — a former Clinton advisor who now serves as Theranos’ general counsel. They will be joined by nine other top women in Silicon Valley, according to CNBC, which first reported the venue change. The Clinton campaign declined to comment on the event.” (Sharon Begley, “Clinton Campaign Relocates Fundraiser Away From Theranos,” Stat News, 3/21/16)

Clinton Benefits From Her Theranos Ties In More Ways Than One

Cycle To Date, Lobbyist Irene Bueno Bundled $62,247 For Clinton’s Campaign. (Federal Election Commission, Accessed 10/16/16)

  • Bueno Lobbied For Theranos As Recently As The Third Quarter Of 2015, And The Firm She Works For, NVG, LLC Lobbied On Behalf Of Theranos In The Fourth Quarter Of 2015. (Query The Lobbying Disclosure Act Database, The United States Senate, Accessed 4/16/16)

Elizabeth Holmes Has Participated In Clinton Foundation Initiatives, Appearing At Their “Health Matters Summit” In January 2015. “Holmes has appeared with the Clintons before. In January 2015, she participated in a the Clinton Foundation's ‘Health Matters Summit.’” (Arielle Duhaime-Ross, “Here’s A Picture Of Theranos CEO Elizabeth Holmes And Chelsea Clinton,” The Verge, 3/22/16)

  • Holmes Also Spoke With Bill Clinton About The “Future Of Equality And Opportunity” In September 2015 At A Clinton Global Initiative Event. “And in September, she spoked with Bill Clinton about the ‘future of equality and opportunity’ during a Clinton Global Initiative event.” (Arielle Duhaime-Ross, “Here’s A Picture Of Theranos CEO Elizabeth Holmes And Chelsea Clinton,” The Verge, 3/22/16)

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