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Theranos founder Holmes ordered to jail after appeal snub

(2023/04/11)


Disgraced Theranos CEO Elizabeth Holmes' attempt to stave off her time behind bars has been rejected, with a federal judge denying her request to remain free on bail pending appeals and reaffirming the court's order for her to report for incarceration later this month.

Holmes' appeal was denied by Judge Edward Davila of California's northern federal district court, who said that while she didn't pose a flight risk or threat to her community, she still failed to meet a burden that her appeal had raised "a substantial question of law or fact," and as such was unlikely to result in a reversal of her verdict or an order for a new trial.

In other words, she's out of time, out of excuses, and needs to be sent down.

[1]

Holmes was found guilty in January of last year and [2]sentenced to more than 11 years in prison and three years of supervised release for her role in defrauding investors in Theranos, which claimed to have developed medical diagnostic equipment able to detect various diseases using just a few drops of blood.

[3]

[4]

While she was facing 11 charges, Holmes was only found guilty of one count of conspiracy to commit wire fraud and three counts of wire fraud. She was found not guilty on four charges, and the jury was unable to resolve a further three counts.

In his [5]order [PDF] denying Holmes' request, Judge Davila said that requests for defendants to be released pending appeals have to satisfy four criteria, namely that they aren't a flight or safety risk, aren't appealing with intent to delay their sentence, that the appeal raises the aforementioned substantial legal or factual questions, and that the appeal is likely to result in a reversal or retrial.

[6]

Holmes has already been [7]denied a new trial , something Judge Davila pointed out in his decision. He stated that her previous arguments for a retrial were denied on "multiple grounds, any of which would have supported denial of the respective motion."

[8]Theranos founder Elizabeth Holmes's arguments for new trial deemed spurious – just like her tech

[9]Former Theranos CEO Elizabeth Holmes sentenced to 11 years in prison

[10]Theranos CEO Elizabeth Holmes found guilty of fraud: Blood-testing machines were vapourware after all

[11]Theranos CEO Elizabeth Holmes found guilty of fraud: Blood-testing machines were vapourware after all

Further, Judge Davila said, Holmes' current motion fails to respond to all the bases for the previous retrial denial. Given that, "the court cannot conclude that reasonable jurists would fairly debate these remaining issues when Ms. Holmes's Motion does not address all bases for the court's denials," the judge wrote.

Citing her arguments that evidence in the case didn't accurately or reliably portray Theranos' technology, Judge Davila said even if she succeeded in appealing the use of that evidence it was unlikely to result in a reversal of her conviction.

"Contrary to her suggestion that accuracy and reliability were central issues to her convictions, Ms Holmes's misrepresentations to Theranos investors involved more than just whether Theranos technology 'work[ed] as promised,'" the beak wrote in his decision.

Judge Davila also rejected claims the court erred in rejecting former Theranos COO Ramesh "Sunny" Balwani's testimony as hearsay, and declared it was perfectly appropriate to exclude cross-examination questions of former Theranos lab director Adam Rosendorff's employment after leaving Holmes' collapsed firm. Judge Davila also said both claims would be insufficient to overturn the verdict.

[12]

With her attempts to stay out of prison exhausted, Holmes will be required to surrender on April 27 to begin her 11-year sentence, and appeals will be decided while she's behind bars.

Balwani, who was found [13]guilty of 12 counts (10 of wire fraud and 2 counts of conspiring to commit wire fraud) and [14]ordered to serve 12 years and 11 months in prison beginning in early March, filed a [15]last-minute appeal last month to have his prison sentence delayed as well.

Judge Davlia denied Balwani's motion on similar grounds to Holmes, namely that he didn't raise a substantial question of law or fact and that any appeals were unlikely to result in a reversal or new trial. The judge issued an order Friday for Balwani to surrender for his sentence on April 20. ®

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[2] https://www.theregister.com/2022/11/18/theranos_elizabeth_holmes_prison/

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZDXYhE-n8YtZ9JL@wMmIewAAAMo&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

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[5] https://regmedia.co.uk/2023/04/11/holmes-release-denial.pdf

[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZDXYhE-n8YtZ9JL@wMmIewAAAMo&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[7] https://www.theregister.com/2022/11/09/theranos_holmes_trial/

[8] https://www.theregister.com/2022/11/09/theranos_holmes_trial/

[9] https://www.theregister.com/2022/11/18/theranos_elizabeth_holmes_prison/

[10] https://www.theregister.com/2022/01/04/elizabeth_holmes_guilty_verdict_theranos/

[11] https://www.theregister.com/2022/01/04/elizabeth_holmes_guilty_verdict_theranos/

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[13] https://www.theregister.com/2022/07/07/former_theranos_coo_found_guilty/

[14] https://www.theregister.com/2022/12/08/theranos_sunny_balwani_receives_longer/

[15] https://www.cbsnews.com/news/theranos-sentencing-sunny-balwani-prison/#:~:text=Ex%2DTheranos%20exec%20Sunny%20Balwani%20finds%20way%20to%20delay%20prison%20sentence&text=Former%20Theranos%20executive%20Ramesh%20%22Sunny,boss%20and%20lover%2C%20Elizabeth%20Holmes.

[16] https://whitepapers.theregister.com/



Never thought I'd see the day

Youngone

The whole Theranos story is completely weird.

How some totally unqualified nobody managed to round up all those billions in investment money, and conned former cabinet members and generals to sit on the board of her imaginary company I'll never know.

Unless it was because of greed. She used their greed against them didn't she?

It should be some sort of cautionary tale, but it won't be. Next up: Sam Bankman-Fraud!

Re: Never thought I'd see the day

VoiceOfTruth

-> some totally unqualified nobody managed to round up all those billions in investment money, and conned former cabinet members and generals to sit on the board of her imaginary company

Good sales tactics from her, greed from them (as you indeed mention). Look how much money we can make, they said. Never underestimate just how greedy some people are. Fraud and greed are as old as time, which is why it goes on day in day out.

Anonymous Coward

Quick, have a third baby! Because a responsible person who cares about their children receiving a healthy and happy upbringing would definitely choose to become repeatedly pregnant after learning they're going to prison for 11 years.

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