Jury finds Elizabeth Holmes guilty of fraud
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.
Defence attorney Kevin Downey said Holmes had “good intentions” and there was no evidence that she had been driven by greed.
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.
Theranos founder Elizabeth Holmes sentenced to 11 years in prison
Judge Edward Davila told the heavily pregnant former Theranos boss: ‘Failure is normal. But failure by fraud is not OK.’
Bevan Hurley19 November 2022 13:00
Holmes admits responsibility for Theranos failure in tearful courtroom apology
“I am devastated by my failings. I have felt deep pain for what people went through, because I failed them,” Elizabeth Holmes told the judge through tears.
It was the first time Holmes had taken responsibility for the Theranos failure.
Elizabeth Holmes speaks on stage during the closing session of the Clinton Global Initiative 2015
(Getty)
Bevan Hurley19 November 2022 12:00
Devastating victim impact statement from whistleblower’s father
Alex Schultz, the father of Theranos whistleblower Tyler, read a victim impact statement to say that Holmes had taken a “wrecking ball” to his family.
He looked directly at Elizabeth Holmes as he said Tyler had feared for his life after she hired private investigators to pry into his life.
“My son slept with a knife under his pillow every night thinking somebody was going to come and murder him.”
Mr Schultz is the son of former secretary of state George Schultz, who was an early Theranos backer.
Bevan Hurley19 November 2022 11:00
Selfless visionary or scheming grifter?
But for her many advocates and detractors, Friday’s sentence is unlikely to end the debate around whether Holmes was a well-intentioned humanitarian who got in over her head, or a charlatan in a turtleneck sweater who chose “deceit over candour”.
Bevan Hurley19 November 2022 10:00
Theranos founder Elizabeth Holmes sentenced to 11 years in prison
Judge Edward Davila told the heavily pregnant former Theranos boss: ‘Failure is normal. But failure by fraud is not OK.’
Bevan Hurley19 November 2022 09:00
Judge says tragedy of case is that Holmes was ‘brilliant’
Before sentencing Holmes to 11 years and three months prison, Judge Edward Davila described the case as “so troubling on so many levels”.
“The tragedy of this case is Ms Holmes is brilliant, she had creative ideas. She’s big thinker. She was moving into an industry that was dominated by, let’s face it, male ego. She got into that world.”
Former Theranos CEO Elizabeth Holmes (C) arrives at federal court with her partner Billy Evans (R) and mother Noel Holmes on November 18, 2022 in San Jose, California
(Getty Images)
Bevan Hurley19 November 2022 08:00
Elizabeth Holmes bypasses media, exits courthouse via side entrance
With dozens of cameras trained on the main entrance to the federal courthouse in San Jose after her sentencing, Elizabeth Holmes ducked out of a side entrance.
She will have to report to corrections officials to begin her 11 year sentence in April.
(EPA)
Bevan Hurley19 November 2022 07:00
Wall Street Journal reporter comments on Holmes sentence
John Carreyrou, whose reporting at the Wall Street Journal exposed problems at Theranos, was in court to see Holmes sentenced.
In comments outside the courthouse, the Bad Blood author said the sentence was “stiff” but appropriate given Holmes had put patients at risk.
Bevan Hurley19 November 2022 06:00
Selfless visionary or scheming grifter?
But for her many advocates and detractors, Friday’s sentence is unlikely to end the debate around whether Holmes was a well-intentioned humanitarian who got in over her head, or a charlatan in a turtleneck sweater who chose “deceit over candour”.
Bevan Hurley19 November 2022 05:00
Theranos founder Elizabeth Holmes sentenced to 11 years in prison
Judge Edward Davila told the heavily pregnant former Theranos boss: ‘Failure is normal. But failure by fraud is not OK.’
Bevan Hurley19 November 2022 04:00