Elizabeth holmes theranos, who was the youngest female billionaire, was sentenced to 11.25 year imprisonment and three years of supervised freedom. She was found guilty of four of the 11 charges related to defrauding investors at her trial. However, she was not found guilty for defrauding patients.
Holmes, the former CEO and founder of Theranos could have been sentenced to up to 20 years for each of these four charges. Martin Shkreli, a former executive at pharmaceutical companies, was sentenced to seven-years in prison for securities fraud. However, he was freed after just a little more than four years.
Both sides in United States vs. Elizabeth holmes theranos argued that Judge Edward Davila could consider Holmes’ “reckless disregard of patients” when determining sentencing. Davila declined to accept this proposal since Holmes was only found guilty at the initial trial of defrauding investors.
Holmes was sentenced to four hours. Alex Schultz was the father of Tyler Schultz and he told the court how his son had slept with a knife underneath his pillow because he believed he was being watched by Theranos’ private detectives.
Alex Schultz claims that Holmes hired an investigator in order to track his son Tyler Schultz. He slept with a knife underneath his pillow because he believed someone was going to murder him. He claims that Elizabeth holmes theranos and her lawyers desecrated his family home.
— Dorothy Atkins (@doratki) November 18, 2022
Holmes spoke next. Holmes said, “I regret all my mistakes with every cell in my body.” Judge Davila then delivered his verdict.
Elizabeth holmes theranos is expected to report for prison in April
Fraud at Theranos
After dropping out from Stanford, Holmes founded Theranos. After dropping out of Stanford, Holmes pitched investors and partners for technology that would revolutionize healthcare.
Instead of drawing blood intravenously and waiting days to see the results, her technology would only prick a small amount of blood and immediately run dozens of tests. She was soon the CEO of a company valued at $10 billion, but the technology failed.
Theranos is now defunct, but Holmes’ criminal case against Holmes began last fall after delays caused by the pandemic and her birth of her first baby.
A letter from Holmes’ husband, which was included in a public court file, stated that she is currently pregnant with her second child.
This filing contains 282 pages of letters from Holmes’ family, friends and business associates. They include photos and drawings from her childhood and notes from prominent supporters such as Senator Cory Booker (D–NJ) or venture capitalist Tim Draper.
Draper stated that “While there is a lot of public outcry against Theranos Elizabeth, the attitude is much different in many of the venture industry.” “Venture-backed startups often announce and deliver products before they are ready.”
The sentencing of the former CEO was delayed further by her lawyers requesting a new trial. They claimed that new evidence had been discovered after Adam Rosendorff, former Theranos laboratory director, visited Holmes at his home to seek closure.
Rosendorff was a Theranos employee between 2013-2014 and testified six days during Holmes’ four month trial. Rosendorff’s highly technical knowledge of Theranos’ labs was crucial to the trial.
He testified that Holmes knew Theranos’ technology could produce inaccurate results from blood tests, but she insisted on its use for patients. He quit Theranos after repeatedly raising concerns about the flawed technology.
Holmes’ lawyers claimed that Rosendorff made Theranos look worse when he visited her summer home. These allegations were not supported by Judge Edward Davila.
Rosendorff confirmed that the testimony from last year was true. Rosendorff clarified that he felt sorry about Holmes’ child and would not wish to see her go to prison.
Ramesh Balwani, Holmes’ ex-boyfriend and Theranos COO awaits sentencing. In his own trial, he was found guilty on 12 of the 12 charges. The jury also found him guilty for defrauding investors and patients.
The fraud trial of Elizabeth holmes theranos has been the talk in Silicon Valley, and on Twitter. The trial lasted four months and was so popular, journalists had to get up at 3 AM to ensure they could get in the courtroom to do their jobs. You can read more about it here
Elizabeth holmes theranos, founder and CEO of Theranos, has been found guilty. The jury reached a verdict after seven days of deliberations and four months of court proceedings.
This verdict will have long-lasting implications for Silicon Valley and the rest of Silicon Valley. For two charges, the former youngest and most successful female self-made billionaire was convicted. Continue reading