Elizabeth Holmes sentenced to over 11 years in prison for fraud

Elizabeth Holmes sentenced to over 11 years in prison for fraud

Elizabeth Holmes was sentenced to more than 11 prison sentences. A year in prison on Friday following her January conviction for defrauding investors while running. Failed to start the blood test. Terranos.

 

Judge Edward Davila sentenced Holmes to 11 years and three months in prison and three years supervision after Holmes was released. Elizabeth Holmes sentenced to over 11 years in prison for fraud

 

The sentence also included fines of $400 or $100 for each fraud. Compensation will be determined later. Holmes was ordered into self-custody on 27 April 2023. She is expected to appeal her decision.

 

Holmes, which is Found guilty on January 4 of defrauding investors.Faces up to 20 years in prison and $250,000 in fines plus reparations for each offence.

 

Government lawyers asked for 15 years in prison, as well as probation and compensation. As Holmes’ probation officer pushes for a nine-year prison sentence, Holmes’ lawyers ask her presiding officer, Davila, to sentence her to 18 months in jail, followed by probation and probation.

 

before the hearing was announced Holmes spoke tearfully to the court in San Jose. California “I love Theranos. It’s my life’s work,” she said. “The people I try to engage with Theranos are the people I love and respect the most. I regret my failure.”

 

She also apologized to Theranos employees, investors and patients. I would do anything to build our company and save our company,” she said. “I am sorry for every cell in my body that has failed.”

 

“The judge imposed powerful penalties that argue that fraud cannot be disguised as innovation in Silicon Valley,” said George Demos, a former SEC enforcement attorney and UC Davis assistant professor of law.

 

Given the opportunity to speak, Elizabeth Holmes issued a statement saying she was responsible for Theranos, but did not say she was responsible for the fraud.

 

Arguing before a judge on Friday over her verdict, one of Holmes’ attorneys, Kevin Downey, said the Theranos founder was unlike any other defendant. In a corporate fraud case, Theranos founders did not act greedy by withdrawing stock or spending their money on “Yachts and planes” , but the money is cheap. “used to create medical technology”

 

Federal prosecutor Jeffrey Schonk said Holmes gained fame, admiration and a lifestyle through fraud. Although she did not receive any financial gain. “These are still her benefits,” he said.

 

Friday’s trial upset Holmes. amazing catastrophe Once hailed as an icon of the tech industry for her company’s promise to test the conditions. with just a few drops of blood She is now a rare technology founder who has been convicted and serving a prison sentence for her company’s stride.

 

Holmes is now 38 years old. Started Theranos in 2003 at the age of 19. and shortly thereafter dropped out of Stanford University to pursue the company full time. After a decade under the radar, Holmes began courting the media, claiming that Theranos had invented technology that could accurately and reliably test a variety of conditions using just a few drops of blood pricked from a finger.

 

Theranos Raises $945 Million From Impressive Investor List That includes media mogul Rupert Murdoch, Oracle founder Larry Ellison, Walmart’s Walton family and the billionaire family of former Secretary of Education Betsy DeVos. At its peak, Theranos was worth $9 billion, making Holmes a billionaire on paper. She was featured on the cover of a magazine.

 

 

They usually wear their signature black turtleneck. Which invites comparisons to the late Apple CEO Steve Jobs (she didn’t wear that in the courtroom).

 

company begin to unravel After a 2015 Wall Street Journal investigation, the company had previously performed about a dozen of the hundreds of tests it offered using its proprietary blood testing equipment. Instead, Theranos relies on third-party-manufactured devices from traditional blood testing companies.

 

In 2016, Theranos canceled two years of blood test results. In 2018, Holmes and Theranos settled. Alleged “fraud of large amounts of money” with the Securities and Exchange Commission but did not admit or deny any allegations as part of the settlement. Theranos dissolved soon after.

 

at her trial Holmes alleged that she was in the midst of a decade-long abusive relationship with her then-boyfriend and Theranos COO Ramesh “Sunny” Balwani while running the company. She accused Balwani of trying to control almost every aspect of her life. including controlling her diet Her voice and image and separated her from others (Balwani’s lawyers denied her claims).

 

In July, Balwani He was found guilty of all 12 counts. at a separate trial and faced the same The maximum possible imprisonment time for her Balwani is due to be sentenced on December 7.

 

“The impact of Holmes and Balwani’s fraudulent actions is widespread and severe,” federal prosecutors wrote in a November court filing on Holmes’ conviction. “Dozens of investors lost over $700 million, and many patients received unreliable or entirely inaccurate medical information from Theranos flawed testing, putting their health at risk. a serious risk.”

 

More than 100 people wrote Holmes letters of support to Davila. to request leniency in her trial The list includes Holmes partner Billy Evans, several members of Holmes’ family, and Evans early Theranos investor Tim Draper. and Sen. Cory Booker. share

 

“I still believe that you still hope that you can contribute to the lives of others. And even if you’re wrong You can make the world a better place,” Booker wrote. Noting that he still considered her a friend.

 

pre-trial There remains the question of how the Holmes trial might have been complicated by the developments in her life after stepping down from Theranos. Holmes and her partner Evans, who met in 2017, have a young son. Holmes is also pregnant. This is confirmed by recent court filings and her most recent court appearance in mid-October.

 

Mark MacDougall, a white-collar defense attorney and former federal prosecutor, told CNN Business ahead of the hearing: The fact that Holmes had a young child probably influenced her conviction.

 

“I don’t know if it can’t be done. Because judges are human beings,” he said

 

MacDougall also said he doesn’t see how long prison sentences can be achieved. “Elizabeth Holmes will never run a big company again,” he said. Something like this will happen again.”

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