Jury finds Elizabeth Holmes guilty of fraud
Theranos founder Elizabeth Homes is set to learn her fate today as she is sentenced for defrauding investors of the blood-testing startup.
The heavily pregnant 38-year-old arrived at the federal courthouse in San Jose at around 9.30am Pacific time with husband Billy Evans and parents Christian and Noel Holmes.
Prosecutors have asked Judge Edward Davila to sentence Holmes to 15 years in prison and that she pay $800m in restitution for her role in the company’s fraudulent claims.
Assistant US attorney Robert Leach called the case “one of the most substantial white collar offences Silicon Valley or any other district has seen,” and rejected defence attorneys’ characterisation that Holmes had been unfairly victimised, in part by media coverage.
New Jersey Senator Cory Booker was among 140 friends, family and supporters who asked Judge Davila for leniency.
Holmes’ lawyers have cast her as a scapegoat who overcame a toxic relationship with Theranos COO Ramesh “Sunny” Balwani to become a loving mother. They have argued that sending Holmes to prison was “unnecessary” and asked for an 18 month period of home incarceration.
Holmes was convicted in January of three felony counts of wire fraud and one felony count of conspiracy to commit fraud.
Judge considering a sentence of between and 11 and 14 years
Judge Edward Davila says the sentencing guidelines indicate a sentence of between 11 and 14 years.
Important to note, this is not the actual sentence, but a sign of where he might be heading.
Bevan Hurley18 November 2022 20:56
Judge Davila says he won’t set restitution today
Judge Edward Davila will not impose a financial penalty on Holmes today, he has just said.
Bevan Hurley18 November 2022 20:50
Holmes was not the leader of the criminal acts, Judge Davila says
Judge Davila’s comment appears to lay primary blame for the Theranos scandal with Ramesh Balwani, who will be sentenced next month.
He said Holmes was the leader of the company, but not of the criminal activity.
Bevan Hurley18 November 2022 20:44
10 victims, $385m lost
Judge Davila says he will sentence Holmes based on her defrauding 10 victims of a total of $385m, according to Law 360.
Among the victims were Rupert Murdoch and the family of former Education Secretary Betsy DeVos.
Bevan Hurley18 November 2022 20:42
Judge rejects $800m investor loss figure submitted by prosecutors
Another ruling goes in favour of the Theranos founder.
Dorothy Atkins of Law 360 tweets: “The judge notes Theranos was a private company and the reality is that none of the investors are likely to recover a return on their investments. He adds that estimating the value of shares given the fraud ‘is challenging’.”
Bevan Hurley18 November 2022 20:36
Judge Davila won’t consider potential harm to patients
A victory of sorts for Elizabeth Holmes — the judge won’t consider harm to Theranos patients in deciding on a sentence.
Ethan Baron, of Mercury News, has more.
Bevan Hurley18 November 2022 20:31
Judge Davila is addressing objections before moving on to sentencing guidelines
We’re approaching the business end of the sentencing now.
Judge Davila is going over the numerous objections that arose, and will then talk about his sentencing-guideline calculations.
Bevan Hurley18 November 2022 20:26
The sentencing hearing is resuming
Judge Edward Davila has returned to the courtroom and we’re back underway.
Scott Budman is in the courtroom for NBC Bay Area.
Bevan Hurley18 November 2022 20:22
Elizabeth Holmes’ attorneys say investor loss came to $48m
Attorneys for both sides have been arguing for some time over how much Elizabeth Holmes defrauded investors out of.
Prosecutors put the figure at $804m, while Holmes’ lawyers say it is $48m.
Two hours into the hearing, Judge Davila has called a 15 minute break.
Bevan Hurley18 November 2022 19:59
Elizabeth Holmes ‘emotionless’ in court
A heavily-pregnant Elizabeth Holmes has remained emotionless throughout the near two-hour sentencing hearing so far, NBC tech reporter Scott Budman notes.
Attorneys are involved in a lengthy discussion around Theranos’ financials.
Bevan Hurley18 November 2022 19:54
