HomeWorldElizabeth Holmes sentenced to more than 11 years for Theranos scam

Elizabeth Holmes sentenced to more than 11 years for Theranos scam

Disgraced Theranos CEO Elizabeth Holmes was sentenced Friday to more than 11 years in prison for defrauding investors in the failed startup that promised to revolutionize blood testing but instead sent her to Silicon Valley. Made a symbol of ambition, which turned into a deception.

The sentence imposed by US District Judge Edward Davila was less than the 15-year sentence federal prosecutors had requested, but far harsher than the leniency his legal team sought for the mother of a one-year-old son with another baby on the way.

Holmes, 38, faced a maximum of 20 years in prison. His legal team requested no more than 18 months, preferably served in home confinement.

“It’s a very heavy sentence,” said defense attorney Rachel Fiset, who has also been involved in health care cases.

Holmes, who was CEO throughout the company’s turbulent 15-year history, was indicted in January over the scheme, which revolved around the company’s claims that it had developed a medical device that could kill many people with a few drops of blood. Can detect diseases and conditions. But the technology never worked and the claims were false.

Theranos was vilified by “misrepresentations, boasting and just plain lies,” the judge said.

“This case is so troubling on so many levels,” Davila said. “What was it that led Ms. Holmes to make her decisions? Was there a loss of moral compass?”

Holmes’ meteoric rise once landed him on the cover of business magazines, hailing him as the next Steve Jobs. And his hoax was persuasive enough to add to a list of sophisticated investors that included software magnate Larry Ellison, media mogul Rupert Murdoch and the Walton family behind Walmart.

She sobbed when she told the judge she accepted responsibility for her actions.

Holmes said, “I regret my failures with every cell of my body.” She promised Davila that she would dedicate the rest of her life to trying to help others.

Holmes’ attorney, Kevin Downey, indicated that she would appeal against the sentence. Holmes and his family left the courthouse through a side entrance and managed to avoid reporters and photographers.

Before sentencing, Davila reflected on Silicon Valley’s transition from an agricultural center populated by farmers and ranchers to a “crucible of innovation” filled with bright-eyed entrepreneurs who dream of changing the world.

Recalling technology pioneer Hewlett-Packard’s humble beginnings in a small garage in Palo Alto — the same city where Theranos was located — he talked about “honest, hard work.”

“I hope this will be the legacy and continuation of this valley,” Judge said.

Amanda Kramer, a former federal prosecutor who is now a defense attorney, described the sentence as “the equivalent of a neon, flashing billboard” as a “reminder of the long-term consequences of fraud, which outweigh any short-term gains.” Far more.”

The sentencing in the same San Jose courtroom where Holmes was convicted of four counts of investor fraud and conspiracy marked another climactic moment in a saga that has been dissected in an HBO documentary and an award-winning Hulu series. has gone.

Her attorneys argued that Holmes was a well-intentioned entrepreneur who was now a devoted mother. His view was supported by more than 130 letters submitted by family, friends and former colleagues praising Holmes.

Davila suggested that the tone of the letters might have been different if the writers had seen and heard all the evidence shown to the jury.

Prosecutors also wanted Holmes to pay $804 million in restitution—an amount that covers most of the nearly $1 billion he raised from investors. But the judge left that question for a future hearing that has not been determined.

While wooing investors, Holmes took advantage of a high-powered Theranos board that included former Defense Secretary James Mattis, who testified against him during his trial, and two former secretaries of state, Henry Kissinger and the late George Schultz, whose son, Alexander, submitted a statement reprimanding Holmes for enacting a scheme that played Schultz “for a fool”.

Alexander Schultz made a brief appearance Friday to rebuke his son Tyler for terrorizing him, a former Theranos employee turned whistleblower who helped The Wall Street Journal expose flaws in the company’s blood-testing technology. Of.

In the first of a series of journal articles in October 2015, Alexander Schultz stated that Holmes had hired private investigators to follow Tyler. The surveillance horrified Tyler so much that Alexander said his son began sleeping with a knife in his bed.

The judge granted Holmes more than five months of freedom before reporting to prison on 27 April – a window of time allowing her to be able to give birth to her second child before being imprisoned. She gave birth to a son shortly before her trial began last year.

If Holmes’ pregnancy had any role in determining the sentence, the decision could prove controversial. A 2019 study found that more than 1,000 pregnant women entered federal or state prisons over the 12-month study period; 753 of them gave birth in custody.

According to a 2016 survey by the Bureau of Justice Statistics, more than half of women entering federal prison – 58% – reported being mothers of minor children.

Kramer said it appears clear that Davila did not let the pregnancy cloud her judgment. Her sentence was “a lesson about justice being blind, whether you are a woman, a mother, a powerful person, you are being treated equally under the law.”

Federal prosecutor Robert Leach described the Theranos scandal as one of the most serious white-collar crimes ever committed in Silicon Valley. In a scathing 46-page memo, Leach urged the judge to send a message to curb the hubris and exaggeration fueled by the technological boom of the last 30 years.

Even though Holmes was acquitted on four counts of fraud and conspiracy involving patients taking Theranos blood tests, Leach also asked the judge to take into account the health hazards posed by Holmes’ conduct.

Evidence presented during her trial revealed that the tests produced wildly unreliable results that could lead to the wrong treatment of patients.

Holmes’ lawyers portray him as a selfless visionary who spent 14 years trying to revolutionize health care. He stressed that Holmes didn’t stop trying to perfect the technology until the collapse of Theranos in 2018.

They also pointed out that Holmes never sold any of his Theranos shares — a stake worth $4.5 billion in 2014. “Where did all the money go? To build the technology,” Downey said.

In court documents, Downey asked Davila to consider the alleged sexual and emotional abuse she suffered when she was romantically involved with Ramesh “Sunny” Balwani, who became a Theranos investor, top executive and eventually an accomplice in her crimes. was.

Balwani, 57, is scheduled to be sentenced on December 7 after pleading guilty in a July trial to 12 counts of cheating and conspiracy.

Author
Authorhttps://searchnews.in
Hello Friends, My Name is Raushan Kumar. I am a Part-Time Blogger and Student. I am author of https://searchnews.in . We're dedicated to providing you the best of News, with a focus on Business, Health, Lifestyle, World, Tech, India, Gadget.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

- Advertisment -