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.
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.
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.
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.
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.
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’.”
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.
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.
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.
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.