Elizabeth Holmes sentencing: Theranos founder to face restitution hearing after being jailed for 11 years
Prosecutors are demanding that Holmes be given 15 years in prison
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Theranos founder Elizabeth Homes has been sentenced to more than 11 years in prison for defrauding investors of the blood-testing startup.
Holmes, who plans on appealing, will not have to report for her 135-month prison sentence until April 2023, the judge announced during the hearing.
“I am devastated by my failings,” a heavily-pregnant Holmes said in a tearful courtroom apology.
“I have felt deep pain for what people went through, because I failed them.”
Prosecutors had 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.
Holmes’ lawyers cast her as a scapegoat who overcame a toxic relationship with Theranos COO Ramesh “Sunny” Balwani to become a loving mother.
Holmes was convicted in January of three felony counts of wire fraud and one felony count of conspiracy to commit fraud.
Judge Davila said he would schedule a restitution hearing to determine how much Holmes must repay at a later date.
Everything you need to know about the Theranos founder
Elizabeth Holmes was found guilty of defrauding investors in her former blood-testing startup company, Theranos, concluding a trial that gripped both Silicon Valley and the international media outlets which initially helped propel her to stardom.
An attempt at requesting a new trial faltered — she claimed that one of the key witnesses acknowledged regrets about the proceedings, however, he stood by his testimony — and on Friday she will be sentenced, with prosecutors calling for 15 years in jail for her crimes.
Here’s a comprehensive recap on how we got to today’s sentencing.
Elizabeth Holmes trial: Everything you need to know about the Theranos founder
Elizabeth Holmes net worth, age and everything you need to know
Did Holmes knowingly put patients lives at risk?
This point appears to be a key consideration in today’s sentencing.
Attorneys are arguing over whether Holmes was “reckless” in allowing blood testing to be carried out on Theranos’ faulty Edison machines.
She was acquitted of defrauding patients at trial, and convicted of three charges of duping investors.
Holmes has never taken responsibility for Theranos downfall, prosecutors say
Elizabeth Holmes has frequently portrayed herself as a martyr who was unfairly demonised over Theranos’ failure.
“At trial, she blamed her COO (and longtime boyfriend), her board, her scientists, her business partners, her investors, her marketing firm, her attorneys, the media — everyone, that is, but herself,” US assistant attorney Robert Leach wrote in a pre-sentencing filing.
That is now being discussed as to whether it should be a factor in her sentence, Law 360’s Dorothy Atkins writes.
Holmes exhibits ‘arrogance’, prosecutors argue
Holmes’ reluctance to take responsibility exhibits “arrogance”, prosecutors say.
Cory Booker among the 140 supporters to call for leniency
The New Jersey Democratic Senator wrote that he considered Holmes to be a friend and asked for leniency.
Judge focusing on power dynamic between Balwani and Holmes
Judge Davila is hearing from both sets of attorneys on whether Elizabeth Holmes or Ramesh Balwani ultimately called the shots at Theranos.
Holmes has repeatedly sought to characterise her former boyfriend as manipulative and controlling.
Everything you need to know about the Theranos founder
While we await a sentence, here’s a comprehensive recap from our reporters on how we got to today’s hearing.
Elizabeth Holmes trial: Everything you need to know about the Theranos founder
Elizabeth Holmes net worth, age and everything you need to know
Attorneys argue over who should be considered a victim
Ninety minutes into the hearing, attorneys are involved in a lengthy debate over who should be considered a victim of Elizabeth Holmes’ offending.
Prosecutors say investors who put their money into Theranos during the period the “scheme was activated”, NBC Bay Area reporter Scott Budman tweets.
Prosecutors say Holmes’ deceit lost investors more than $800m
Prosecutors have estimated the total of Elizabeth Holmes’ fraud at $804m, and are seeking restitution of that amount.
Her attorneys dispute that figure, and have pointed out that Holmes never sold any of her Theranos shares — a stake valued at $4.5bn in 2014.
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.